There are a lot of hard lessons that accompany being an adult, but some of the hardest, without a doubt, involve money. Your 20’s are a time when you gain a lot of financial responsibility, and it can be incredibly overwhelming. Here are 20 things you’ll learn about money in your 20’s
1. Make every dollar you earn have a purpose- This will assist you not to splurge and understand the value of making money.
2. Set financial goals– You should set short and long-term goals and check your progress often.
3. Establish a budget- Without a budget, you risk overspending on discretionary items and under-saving for important purchases.
4. Save money every month- Set a goal to save 10-15% of your income to put toward long-term goals each month.
5. Start contributing to retirement- You should start contributing to your 401(k) or other retirement plans at your first job.
6. Protect your savings account- If you find it easy to dip into your savings account, you need to find a way to protect your savings account. The next thing to know can help with that.
7. Build an emergency fund- An emergency fund can cover unexpected expenses right away.
8. Little matters a lot- If you can put another $5 dollars towards your debts, do it.
9. Get started investing- It’s never too early to start investing and to watch your money grow.
10. Become self-sufficient- Look to get off your parent’s payroll and onto your own. If you do need financial assistance from them, approach them maturely and responsibly.
11. Take calculated risks- Make 2-year plans that hinge on major achievements, but can be abandoned with little consequence if you fail.
12. Get insured– As an adult, you are responsible for protecting yourself and all your stuff from disorder.
13. Shop with a list- One of the best ways you can save money while shopping is to shop with a list and stick to it. This habit only takes a few minutes before each trip.
14. Always look for deals- If you make looking for a deal a habit, you will be able to save significantly over the course of your life.
15. Don’t rely on credit cards– A bad financial habit to develop is to rely on credit cards to cover daily expenses. Try not carrying credit cards with you.
16. Give to charity– It is important to give back in some way. This may mean making charitable donations to the causes you support.
17. Get important documents in order- You should have all your important documents in your possession, not your parents. Store all this important information in a secure location.
18. Try uncomfortable things- Most people are broke. Try doing weird things like saving 25% of your income or living without a car.
19. Pay all your bills on time- It’s vital that you pay your bills on time. Missed payments can have a number of consequences.
20. Find balance- Finally, it is important to find a balance between work, saving, and enjoying your life. Take time to relax but make sure that you are saving enough to be comfortable down the road.
It’s okay to admit that you’re overwhelmed and confused and that you need help financially. If you can stick with these essential 20 tips and money rules, you should be in a good place.