People go through different paths in their 20s. Some pursue higher education; some start families early, and some take this time to build their career or business from the ground up. Everyone is busy adjusting to early adulthood. But one thing is for sure: We’re still unsure of how to handle our finances. 
For many of us, stepping into our 20s is the first time we’re making our own money instead of relying on an allowance. Unfortunately, not everyone is well-equipped with financial skills to avoid incurring debts and failing to save. Are you having trouble handling your money, too? Don’t worry. Trusted online resources such as Money Wise share some useful financial tips for everyone in their 20s.

1. Create a budget

Once you start making money, the first thing that you have to do is to create a budget. List down all your necessities, and then your allowable splurges for each month. Then, what’s leftover of your monthly income should go to your savings account.

2. Stick to your budget

Now comes the hard part–sticking to your planned budget. Once you’ve set your budget for each month, make a conscious effort to not go over it. And to do that, you need to learn how to spend your money wisely. Say no to the weekly milk tea or samgyeopsal eat-outs, stop buying things that you don’t need, and stay away from online shopping sales. It’s not going to be easy to say no to your wants and whims, but you will thank yourself later.

3. Start a savings account

Open a savings account with a bank that offers great annual interest. Make it a pact with yourself never to touch this account unless you really need to (and no, an emergency shopping spree doesn’t count). Then, deposit into this account every time you get your pay.
growing savings concept

4. Build an emergency fund

An emergency fund will keep you afloat in case you lose your job or can’t go to work due to dire reasons. As a general rule, an emergency fund should cover at least three months of your monthly expenses.

5. Take out insurance

Insurance is cheaper when you’re in your 20s. Hence, it will be wiser to acquire insurance now than when you get to your 30s. You may see it as an additional expense now, but you don’t want to end up without coverage when you need it the most.

6. Practice delayed gratification

When we’re in our 20s, it’s hard to refuse the things we couldn’t afford when we were in our teens. But now that we’re making our own money, we should learn how to treasure it. Practice delayed gratification by waiting a few days before you buy the thing that you want. If you still want it by then, give it one more thought before buying it.

Being a 20-something in this day and age isn’t easy. You have to juggle school, career, family, friends, health, and finances all at the same time. But with these money tips in mind, you should be one problem down on that list.

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