Attaining Financial Stability

Financial stability is a goal that many people aspire to, but certain factors in life can make it difficult to attain. With the right tools and guidance, there is no reason why people can’t become more financially savvy. Because of this, we at Red Star are committed to providing people with access to quality and impartial financial education customised to their unique journeys and individual financial needs. Once this knowledge is attained, people can positively alter the course of their financial journeys. So, we’ve put together some great financial tips as life continues through the decades:

Money tips for your Twenties:

Many people in their twenties have just started their careers, or are studying and finding their footing in the real world:

  • You are not too young – set a financial plan, set realistic goals and invest money for the future
  • Pay off your debts as fast as you can
  • Forget the Joneses and stick to your budget – only buy what you need
  • Get a side job to earn an extra income if you can – pay off debts, invest it or build up an emergency fund
  • Changing jobs is common but don’t mess about with your retirement savings – don’t cash them out, re-invest them when you change jobs
  • Get life insurance and protect your income – tragedy can strike anyone at anytime
  • Create an emergency fund – put away three months’ salary so that you’re prepared if disaster strikes
  • Build a healthy credit score – a good credit score means lenders will grant you loans at lower interest rates

Money tips for your Thirties:

For many this phase is when families are started, and long-term investments are made:

  • Think long-term and invest consistently – you won’t grow rich overnight
  • Don’t put all your eggs in one basket – diversify your investments
  • Bulk up your emergency fund so that no emergency will be too big for you to handle
  • Make sure you pay off your credit accounts in full every month and steer clear of bad debt like store cards or payday loans
  • Think comfortable and not extravagant – don’t max out your savings when buying a house. An emergency may mean that you suddenly can’t afford your mortgage so leave yourself some room to wiggle
  • Make sure you have an updated will which provides adequately for your spouse and kids in case something happens to you
  • Spend less than you earn and save – your future self will thank you

Money tips for your Forties:

Many in this bracket are focused on saving for their retirement and living a comfortable life. Balance living and spending with saving and investing:

  • Increase your retirement contributions
  • Pay off any leftover high-interest debt
  • Treat yourself – go on your dream holiday or get those home improvements done
  • Teach your kids how money works – if you can, ingrain the habit of saving

There are many ways to avoid falling into financial despair, and with the correct financial education and planning, you and your family can prosper.

 

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