How to Manage Your Personal Finances in Your 20s

How to Manage Your Personal Finances in Your 20s
  • Opening Intro -

    Having money isn't everything, not having it is.

    Being in your twenties can be really tough; whether its getting your money organized for the first time, the following are ways to get your money together and financially secure your future.

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Having money isn’t everything, not having it is. Being in your twenties can be really tough; whether its getting your money organized for the first time, the following are ways to get your money together and financially secure your future.

Write a budget and stick to it

It is recommended that you take money for certain things and put it in an envelope. Label the envelopes and when the money is finished you are done spending for the month. Its an efficient way of making sure you do not overspend.

Be realistic about what you earn

You cannot expect to go out to eat every week and wear expensive clothing on an entry level salary. Prioritize the things you need and give your wants a back seat.

Save 20% of your salary

It is advised that you save 20% of your salary, in case of an emergency. A back up fund can save your life in case you suddenly lose your job or things of that nature.

Learn how to save

In your twenties, learn how to save so that you can invest instead of simply saving. While having an emergency fund is crucial, its probably better to take more risks at this age than at any other. Find ways you can make your money grow.

Investing

When investing always look for the opportunity that will give you the most returns. Instead of going one million aim for ten million. This way you can ensure your money is always growing.

Find different ways to socialize

Most times socializing involves going out which can be a drain on your financial resources. Instead try and invite your friends over for drinks at your house. They could bring their own bottles and pull out the board games for a fun night in.

Understand Debt

A little debt is not a bad thing necessarily but try and eliminate as much debt as possible.

Debt can be divided into two categories. There is bad debt and good debt.

Good debt is debt like a business loan, student loans, a mortgage, they are necessary for advancement.

Bad debts include car loans, credit card debt among others. Try and eliminate this bad debt as much as possible. The less money you spend on paying debts the more you can spend on improving yourself.

The great news is with a little patience and determination , you can get your finances in order. Share these tips as widely as possible and help get millennials out of debt.

Money Management reference:

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Last update on 2017-05-22 / Affiliate links / Images from Amazon Product Advertising API

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