The Accounting and Tax

5 Smart Money Moves to make in your 20’s

Are you in your 20’s? In that case, you might be a bit carefree about your life and finance at large. However, in case you want to make it big financially, it is important for you to start early and 20’s may be just the right time to begin. Being into financial consulting since long, we at The Accounting And Tax, suggest through this blog 5 smart moves you need to take in regard to your finances:

• Compound Interest is Like Financial Magic

If you just started working you may be in a job that does more than just cover living expenses. Apart from this it could be ideal to develop a solid savings habit. The sooner you start saving, whether in a Registered Retirement Savings Plan (RRSP) or in a Tax-Free Savings Account (TFSA) the better is. This is because you can then take best advantage of compound interest. Money which you save in your 20’s and 30’s adds up to more by the time you retire, than saving the same amount in your 40’s and 50’s. You need to start small, and gradually keep increasing the amount with time.

• Don’t Get Carried Away

You must realize that there is s nothing wrong with “wanting it all,” but you must also take note of the consequences of “wanting it all right now”. If this is not done then the problems start. These could be like moving into your own apartment, buying your car and so on. You should not get carried away with what is coming in. So as a tax consultant in Canada, we suggest you to always maintain the financial discipline to save first and avoid excessive spending from the beginning.

• Pay off Your Debts

It is often noted that being in debt has become such a normal way of living for many. So the urgency to pay off education debts, including student loans, credit cards, and personal loans, becomes less with the passage of time. But you need to realize that the money you need to repay your education debts will hold you back from other goals and pursuits. So in case you have any loans of such nature, it is best to pay them off quickly. It is also important not to get burdened with debt early on in your life. So no matter what loans you want to avail, make sure you consider the liabilities seriously.

• Get into habit of living below your means

In order to become wealthy you must also take note of the fact that saving and other good financial habits are ones which must be a discipline. These need to be developed right from an early age so that you can develop the same. So instead of living an aimless life it is always advisable to have financial goals and live below your means and save always.

• Choose a Partner & Friends Who Share Your Money Values

It is seen that for most friends, and especially a partner, play a vital role in our lives.They influence largely the habits you develop. So keep a close watch on the association you keep for your overall financial health.