5 Financial Tips for 20-Somethings

attiribute y 401(K) 2012Throughout your 20’s making long term financial decisions is often the furthest thing from your mind, however if you aren’t money wise during this period in your life, it can have serious repercussions later on down the track. Here’s 5 tips to keep you on the right financial path throughout your 20’s.

Keep working

You’re not going to have your dream job just yet (or maybe you do, in which case, congratulations) but that doesn’t mean you can’t build up your resume and have a steady income. Regular income is almost an imperative during your 20s as it allows you to set up your own personal budget and slowly trickle money into that savings account.

For god’s sake save some money

I know that when you’re in your 20-somethings it’s very easy to blow that stash of savings on a whim. By all means go on that trip to Europe, swan about Thailand or trek the Andes, but give yourself a budget limit. Whenever you have an income (which should be almost constantly as per the previous point) put away as much money as you can spare into a savings account.

Stay bad debt free

If you don’t have one right now a credit card is a handy thing to have, but it can be a double-edged sword if used incorrectly. Sometimes it’s tempting while you don’t have any big expenditure to stay away from a credit card, however if you get one early and make sure to pay it off monthly you can build your credit rating easily. It is important to remember though that not all debt is ‘bad’ and borrowing money to invest in something like property can actually lead to a better financial outcome for you in years to come.

Don’t be embarrassed to move back with your parents

If you’ve made it out of the folks place and you’re you become unemployed for any reason don’t be embarrassed to move back with your parents until you find more employment (always remember to check with your parents first of course). Rent is one of the biggest drainers on your wealth so even if you agree to pay your parents a lesser amount in board you’re going to be in a financially better position. Also remember that parents tend to keep a stocked pantry, ideal for the hungry 20-something. If you are in the category of people who hasn’t left the nest yet, you’re laughing.

Make use of happy hour

This might seem like a facetious point but it’s not. You’re in your 20s and chances are you go out and socialise. If there’s anything that travelling overseas has taught us, it’s that Australia is extremely expensive to go out and have a drink in, therefore utilise happy hour. This point obviously transposes to other facets of life as well. Follow any bargain you can see; hunt for sales, shop online where possible, get a bargain, buy home brand. If you’re not trying to save money on everyday items you’re haemorrhaging money.

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The views expressed in this post are that of the writer and do not reflect those of Student-finance.com.au

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