We all know there are a lot of great things about being in your 20s. You’re young, fresh, and you’ve got the world at your fingertips. However, what most people don’t usually talk about is that being in your 20s also comes with some significant challenges. Learning how to be an adult isn’t easy, and if there’s one part of adulthood we wish we didn’t have to deal with, it’s finances.
Although you might be tempted to push making financial freedom a priority until your next decade, starting now will actually make your 20s even more fun than they already are.
Take a look at the top 5 ways to set yourself up for success!
#1 Young, Wild, and On a Budget (Yes, these things can go together!)
When most people hear the word budget, they immediately think of restrictions, limitations, and rules.
But setting up a realistic budget will actually increase your financial freedom, since it will allow you to take charge of where your money goes.
Take a look at these 20s-friendly budgeting tips:
- Get on the Apps – You already use an app to do everything from date to meditate, so why not use an app to set up a budget? There are plenty of apps out there that will help you track where your money is going. Having your budget at your fingertips at all times will make it easier to stay consistent, especially since some automatically link to your credit cards and bank accounts.
- Treat Yourself – Even when you’re on a budget, you can still buy the occasional latte or take the occasional weekend getaway. We aren’t saying don’t treat yourself, we’re just saying be accountable for that spending.
- Prioritize – Once you see how much money you’re actually spending on lattes, it might make you realize you’d rather make them at home and spend that money on something else. A budget can help you determine what really matters to you, so you can cut out spending on things that aren’t sparking joy.
#2 When in Doubt, Call Your Mom
No one expects you to be a financial pro when you’re in your 20s. Reaching out for help is a wise decision. Not only does it mean you’re advocating for yourself and your financial future, but it also means you value the resources available to you.
Consider reaching out to:
- Your mom and dad (they’ll probably appreciate the phone call, regardless)
- Your bank
- An accountant
- Your HR contact at work (they can help you make the most of your benefits)
- A financial advisor (this will make you feel like a real adult, trust us)
#3 You Know What They Say About Death and Taxes…
As a 20-something, the former might seem pretty far away, but the latter is a pressing matter. While taxes themselves are inevitable, tax issues aren’t.
Doing your taxes on time, and ensuring all your information is accurate can help you avoid incurring issues with the IRS.
We aren’t trying to scare you, but if you don’t take this seriously you could end up dealing with tax debt, IRS liens and levies, IRS backup withholding, and other scary adult-sounding problems.
Thank you, next.
#4 You’re Never Too Old for Homework
Even after you finish school, there is still plenty of homework to be done in your 20s when it comes to setting up your financial freedom. Putting in the time to do your research now will help you build the pillars for a financially sound future. This could include things such as learning how to make smart investments to make your money work for you passively. This could mean you might want to educate yourself on investing in commodities, stocks, real estate, or even looking at something like in Wasserstoff investieren (invest in hydrogen) so you’re comfortable with the different opportunities you have when it comes to earning through investments or trades.
Here’s a list of some things you should spend some time researching:
- Credit card reward programs
- Retirement plan options from your employer
- Savings account options
- Banking details like ATM fees, overdraft fees, etc.
#5 Work Hard, Play Hard, Save Hard
When you’re in your 20s, you’re putting in the time at work. You might have a side hustle. You have a fun and busy social life. The only thing that’s missing from this picture is a savings account. We’re all for making the most of your 20s, just be sure to apply your industrious, hard-working, go big or go home mentality to your savings, too.
Don’t Wait to Get Started
It’s easy to procrastinate building the structures for your financial freedom. Don’t wait. The sooner you get started, the sooner you’ll be on your way to becoming a financial success story. Your 20s go by quickly, and there’s really no time spent like the present.
Your 20s are going to be incredible!
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