You only live once. The best time to enjoy your youth is at the ripe age of 20. Today is the moment where you can explore and have fun, now that you gain access to adult money while working at the job of your choice.
Budgeting in your 20s is an overlooked necessity as this is the moment to enjoy life and have fun because your youth is getting shorter. The best money advice is not always there around us as we leisure in the best places with our daily wages and credit cards.
What do I need to know about money in my 20s? This is a common question we should ask before we indulge and throw our money around to become the party’s life. We should live, laugh, and love with no regrets. That is why you should search and read more about the ‘things I wish I knew in my 20s’ before you regret it.
- Set financial goals
- Find deals near you
- Save money in case of emergency
- Track your daily expenses
- Know your credit card
- Spending above what you can earn
- Balance life and finance
- Loan complications
Dive deep into the top 8 best money advice you can consider while budgeting in your 20s, from managing your wages to your credit cards, common misconceptions about budgeting, and what I need to know about money in my 20s.
1. Set financial goals
Your adult money is for you to spend. Take a seat and arrange your thoughts, and visualize a plan for where your finances would go. This can overwhelm you as you start thinking of the future if you plan to have kids, buy a house, invest, or fly to another country.
List all the things you think are necessary and save accordingly. Allot an amount for your happiness, whether it is socializing, material objects, or a trip to Bali. Make sure your necessity is your top priority so your joy can not cripple you.
The best money advice should not eliminate your enjoyment. If you carefully plan your finances, having leisure while budgeting in your 20s is not impossible. Hiring a financial advisor is a good strategy if you’re still unsure of the how-tos.
2. Find deals near you.
From your local market to the popular e-commerce site near you, find the best chances of lessening your regular spending. Promotions are anywhere; collect coupons for physical stores. The lesser your spending, the more you can save. Allocate your money to your other needs or future use.
Look for codes online or wait for vouchers to arrive from online newsletters or in-app purchases; they are available for you to lessen your burden as a customer. Fully utilize these offers and enjoy lesser spending.
3. Save money in case of emergency.
What do I need to learn about money in my 20s? Saving for an emergency does not mean an emergency will happen. This is just a financial translation of the slogan ‘prevention is better than cure.’ Budgeting in your 20s must include emergency funds to avoid unethical loaning if needed in the future.
Save a little from your paycheck, start from a small amount until it grows, and try not to overthink where you’re spending it too. Saving is not your primary goal, but you must be diligent to save for this.
4. Track your daily expenses
Know where your money is going. Thinking of things I wish I knew in my 20s when you reached the age where money is allotted more for other purposes that don’t exist when you are budgeting in your 20s.
What are the things I wish I knew in my 20s? Tracking your spending means you look at the items where you were spending more. If this item becomes expensive with time, try to find an alternative. Monitor gas prices, inflations, and the prices of your necessity so you can choose the best option for spending less while still considering the quality of the product you get.
5. Know your credit card
If you don’t have a credit card now, there are a few things you need to keep in mind before you ask for one.
One of the best money advice as fact in budgeting in your 20s is to know what your credit card is for and when is the best time to use it.
- Credit cards are safer to carry as they are not directly limited to your bank account, having less room or having a credit card limit to be disadvantaged of;
- You can claim different rewards the moment you sign up, on special holidays, cashback, or no interest rate on credits for some time and;
- You can use a credit card to pay off debt, keep a good history of credit, you want to rebuild your credit.
Applying for a credit card is possible if you are 18 years old or above. Having a good credit score multiplies your financial opportunities in the future. What do I need to know about money in my 20s? There are times when you should NOT use a credit card.
If you have a credit card,
- Avoid enquiring for a credit you are unsure if you need. Credit inquiries lower your credit score and if you are an impulsive buyer attract you. Shop around for a period of time and assess if the item will be helpful for you.
- Avoid using your credit card after losing a job. Reduced income affects your credit score and can put you into debt if you keep using it while not having a wage to pay for it.
- Avoid using a credit card if you are still paying for multiple transactions to keep your credit score high.
What do I need to know about money in my 20s? Credit cards are assets, but they are vulnerable. They are not the best choice, especially when you spend above what you can earn.
6. Spending above what you can earn
Having happiness to spend money on is valid. Keeping your enjoyment in check is great for your well-being. However, spending above your means can be a problem for you.
Impulse buying or overspending can demolish your established financial goals. Always consider where your money is coming from; one of the things I wish I knew in my 20s is impulse buying on items that I won’t need in the future is highly regrettable. Buying things can give you satisfaction for a while but guaranteed can not make you happy in the long run. Impulse buying is hard to control, but with the right mindset and by keeping an excellent financial habit, you can get rid of this practice.
Setting an excellent financial goal while keeping your spending in check is one of the best money advice financial experts can offer you. You don’t have to limit your Starbucks coffee if it makes you happy; it is just a cent of what you earn.
What do I need to know about money in my 20s? Make a Good Spending Habit.Carefully assess your necessities and, know where to spend your money, enjoy your cup while having a mindset that can put you in a great place in the future.
7. Balance life and finance
What do I need to know about money in my 20s? You only live once. Things that make you happy can cost depending on what s it, but if it makes you happy, then find the time to have them. Balance your spending, savings, and your enjoyment – do not focus yourself entirely on budgeting in your 20s.
Keep everything working from your financial needs, emergency funds, and savings. Balanced financial decision is a skill to develop to ensure you will be financially stable and fulfilled in the future.
Financial advisors will significantly help you, especially if you have no clear idea of where to start. Your financial decisions can make or break the future. You have all the resources you need to secure that stable future.
The world is not all about money, but it is time to be financially successful whether you plan to have children in the future, buy a car, or secure a house. Now’s the time to earn for your future!
8. Loan complications
In life, debt becomes necessary. In a way, credit cards are also debts you pay at a given time. Know when you should use your credit cards; building a good credit score can be one of your ideals. Budgeting in your 20s should include avoiding unethical loans.
Do not abuse your credit card and save appropriately; having no money at hand can get you into applying for debt. There are cases where immediate loans have higher interest rates putting you in a financial struggle.
What are the things I wish I knew in my 20s? If you have the time and capability, talk to a financial advisor that would help you manage your finances smartly and would not put you in debt.
Choose ethical lending partners like Blend PH. This platform allows clients to get financial inclusivity without loan complications! Something that you should be aware of when you’re in your 20s!