3 Financial Tips for 20s

Phebe Yeo

Your 20s are the years when you begin to 

get a steady paycheck. 

get the adrenaline rush to live your life to the fullest. 

No matter what you are doing in life, saving money in your 20s is more important than you think.

So, how do you get started managing your personal finances?

Here are 3 tips that you can use if you are in your 20s to help you strive towards financial stability.

1. Don’t let rainy days rain on your parade

Be it your phone acting up or unforeseen events happen that make you drain your money.. These are the moments that make you think, “If only i have put aside money for my rain check:

The best part is, it’s never too late to start saving your money in a rainy day fund to keep you at ease in every kind of weather. So, what should you do?

Begin by following the 50:30:20 rule.

Set aside 50% of your monthly savings for your needs, 30% for your wants, and 20% as savings. This 20% of your monthly income accumulated over years can work out to a good rainy day fund.

This was just one way to not let rainy days mess your finances

2. You don’t have to be rich to start investing

Most people in their 20s believe that they need a lot of money to start investing. Well, it’s a myth! 

Be it stocks, mutual funds, ETFs, or even bonds for that matter, you don’t have to be rich to start investing. In fact, getting rich is a milestone that one achieves with careful financial planning and timely savings.

Start investing right from your first paycheck to take a positive step towards your financial freedom. Please invest in terms of your risk profile. Are you a low risk taker? Medium or high risk takers? 

It’s recommended that you begin with diversifying the portfolio to secure returns and minimize the risks of a single investment’s underperformance.

It is not HOW MUCH you invest but WHEN you invest. 

3. Make a habit to track your daily expenses

“Do I know where my money is going?”

If your answer is “No!”, then it’s high time you start keeping track of your daily expenses – be it digitally or in a notebook. There are a few apps that you can download to help you with tracking. Such as Spendee Money, PlannerBee. 

Monny is an app that is a gamified finance journey - pretty cool. 

With this small tweak, you will be able to cut down on unnecessary expenses, differentiate between your ‘needs’ and ‘wants’, and get a better budgeting plan in place. Also, while you are jotting down these daily expenses, make sure that you compile them at the end of the month and analyze the expense tracker to better manage your expenses.

I hope these 3 tips help you. If you agree and resonates with what I just shared, please like and do comment

5. Credit cards provide you comfort (if used wisely)

Mistaking credit cards to be your wishing well in your 20s can hurt your financial planning in the near and farther future.

Credit cards are blessings in disguise. Granted! But they can prove to be otherwise if used unwisely. It’s suggested to use the credit card only when you have the money to pay for your expenses at a later stage.

Remember that a credit card effectively loans you the money for your luxury bag. It does not pay it off for you. Eventually, you will have to repay the given amount and with interest.

But it’s not all gloomy after all. From building a good credit score to providing exciting rewards and offers, using credit cards wisely has a range of benefits in store for us.

The bottomline is: living your 20s in such a way that helps you become financially stable whilst enjoying the little things in life is an art in itself. Put these 5 financial advice to use and start building towards that financial stability and security.

The ball is now in your court!

#Adulting doesn’t have to be so hard when we have more financial advice for you. Make sure you check them out to help you achieve your financial ambitions.