4 important Financial Responsibilities people in 20s should know

Financial responsibilities for 20s

Money may not give happiness but money is an important lifeline for survival. While managing your personal finances you need to consider your responsibilities towards your family. The money you are earning comes with many diverse priorities. As a young earner in the family, you may not know your financial responsibilities.

This post aims to guide you for this.

“Family life is full of major and minor crises — the ups and downs of health, success and failure in career, marriage, and divorce — and all kinds of characters. It is tied to places and events and histories. With all of these felt details, life etches itself into memory and personality. It’s difficult to imagine anything more nourishing to the soul.” Thomas Moore

You have to manage your present and also manage your future with your current income.

Managing the Present

  • Your Parents

Their happy retirement, providing the cost of their health and sustenance cost.

Caring for our seniors is perhaps the greatest responsibility we have. Those who walked before us have given so much and made possible the life we all enjoy.” John Hoeven

  • Your Spouse

Fulfilling her aspirations. Providing for her material, experiential and leisurely need is your responsibility. These days both spouses are working so she will join you to share your responsibilities.

  • Your Children

It is your responsibility to ensure their happy childhood, education, health, and all the basic requirements which will make them content and civilised citizens.

  • Your Society

“We have a responsibility to help those around us and help others in need.” Virginia Williams

To contribute towards the cause you support. Giving donations is a part of responsible citizenship.

Securing the Future

“We are made wise not by the recollection of our past, but by the responsibility for our future.” George Bernard Shaw

Future is uncertain. Yet from experience, you know what can come and what you can’t predict.

Buddha had said, there are things in life you can change and things you can’t change and you should have the wisdom to know the difference.

This is true about the future too. You should have the wisdom to know the future event you can predict and plan or prevent. The future event you can predict but can’t plan or prevent. The future event you neither predict nor plan.

Everything happens to people around you can happen to you.

  • If you have a child, you can predict the need for his higher education, marriage and can plan for it.
  • There is a possibility of your job loss
  • There is a possibility of your bankruptcy
  • There is a possibility of hospitalisation of family members
  • There is a possibility of critical illness of family members
  • There is a possibility of earthquake, fire, cyclone, war, and riots
  • There is a possibility accident
  • There is a possibility robbery
  • There is a certainty of death

Death is the only certain event and perhaps that is why life insurance is the most sold insurance policies.

But almost every uncertainty in life is possible. We know for sure there are possibilities. Any uncertainties for which insurance policies are available are predictable possibilities.

A predictable possibility can be financially planned and managed with insurance policies.

To secure the future, evaluate the risk probability and cover the risk.

To secure the future, evaluate the risk impact and cover the risk.

Cover the risk with higher probability and higher financial intensity.

War may be unlikely to affect you but an accident is more probable and it can impact your finances.

While you live in the present you are continuously entering the future. This is the reason you have to take a call about future events. It is not about your own future but the future of everyone dependent on you is your responsibility

“Try to save something while your salary is small; it’s impossible to save after you begin to earn more.” Jack Benny

You are in the initial years of your career. It is important to know about your financial responsibilities now. This will sensitise you to deal with your money.

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