15 Money Moves Your 20s Self Will Thank You For

Your 20s are a golden era bursting with possibility. It’s also a prime time to establish healthy money habits that set you up for long-term financial success. From building a safety net to investing in yourself, there are key moves you might regret skipping early on. However, this piece discusses sensible money habits people wished they established in their twenties.

1. Retirement Seedling

Retirement might feel like a distant land, but remember, even a tiny seed grows into a mighty tree. Starting retirement savings early is like planting a seed. The magic of compound interest makes your money grow faster over time. The sooner you start, the bigger your nest egg will be when you’re ready to retire.

2. Emergency Fund Fortress

Assume your fridge chooses to take a vacation (by permanently stopping). An emergency fund is your knight in shining armor, protecting you from unexpected costs like car repairs or medical bills. It keeps you out of debt and gives you peace of mind. Aim to save 3-6 months of living expenses so you’re prepared for whatever life throws your way.

3. Budgeting Boss Mode

Feeling like your money disappears into thin air? Budgeting is your financial GPS. It tracks your income and expenses, showing you exactly where your money goes. This knowledge is power! You can make informed decisions about your spending and avoid wasting money on unnecessary things.

4. Credit Card Comrade (The Responsible One)

Using a credit card responsibly can be your friend. It helps you build credit score, a number that’s important for getting loans, renting an apartment, and even getting a good phone plan. But remember, only use your credit card for what you can afford to repay each month.

5. Debt-osaurus Rex – Learn to Say No!

That new gadget or trendy outfit might be tempting, but unnecessary debt can be a scary monster that chases you for years. Living within your means and prioritizing savings for your future objectives is preferable. Consider it delayed satisfaction; you’ll thank yourself later!

6. Invest in You – The Superpower

Learning new skills is like giving yourself a superpower! It can boost your earning potential. Take online courses, attend workshops related to your field, or explore side hustles to make extra money. Investing in yourself pays off in the long run.

7. Money Talks with Loved Ones

Communication is key in any relationship, including financial ones. Talk openly with your partner or roommates about your financial goals and expectations. Discussing money upfront avoids arguments later and helps you work together towards shared dreams.

8. Auto-Pilot Your Finances

Set up automatic transfers to savings and retirement accounts. This “pay yourself first” approach ensures you’re saving consistently without even thinking about it. It takes the temptation to spend that money out of the equation and puts your future self first!

9. Shop Around for Insurance

Don’t just settle for the first car or health insurance plan you see. Shop around and compare prices to find the best coverage that fits your budget. Remember, a few phone calls today can save you hundreds (or even thousands) of dollars in the long run.

10. Beware of Lifestyle Inflation

As your income grows, it’s easy to fall into the trap of spending more. Challenge yourself to avoid lifestyle inflation. Keep your fixed costs low and focus on saving for your goals instead of constantly upgrading your lifestyle.

11. Beware of Comparisonitis

Social media can make it seem like everyone else is living a luxurious life. Don’t compare your financial journey to others. Everyone’s situation is unique. Focus on your own goals and celebrate your progress, no matter how small.

12. Cook More at Home

Eating out adds up quickly! Challenge yourself to cook more meals at home. It’s usually healthier and way cheaper than constantly grabbing takeout or dining at restaurants. Plus, you get to learn new recipes and have fun in the kitchen!

13. Free Entertainment

There are tons of free or low-cost ways to have fun. Explore free museum days, visit local parks, or have game nights with friends. Being creative with entertainment saves money and allows you to explore new experiences.

14. Read Personal Finance Books

Knowledge is power, especially when it comes to your money. Borrow books from the library or check out online resources to learn about personal finance. The more you understand about money management, the better equipped you’ll be to make smart financial decisions.

15. Seek Financial Guidance (If Needed)

Don’t be afraid to seek professional help. Financial advisors can offer personalized advice and help you create a financial plan that aligns with your goals. This can be especially helpful if you’re feeling overwhelmed or unsure where to start.