They say that your 20s are the time to make mistakes, and while that should be true about a lot of things – money shouldn’t be one of them. The sooner you learn to manage money well, the better your future finances will be. There are plenty of lessons to learn along the way that will help you develop a bit of money sense that will take you far in life.
Take a look at these five important money lessons to learn in your 20s.
1. Learn how to budget
A budget doesn’t have to be something you do when you need to tighten your belt. In fact, sticking to a budget all the time can help you to manage your income and your outgoings easily – making it simpler to save, to enjoy yourself and not have to worry about money. Create a budget for yourself now and get a clearer picture of where your money’s at each month.
2. Avoid getting into unnecessary debt
The fear of missing out is strongest in your 20s, as your new freedom, regular income and a wide social circle will lead to opportunities that you can’t afford to miss. Except that you can’t afford to take part either. Avoid the temptation of putting everything on a credit card, as this is debt you will only end up struggling with later on. Learn how to save or sacrifice other things to be able to afford the things you want, and if your income won’t stretch far enough – why not start a side hustle instead?
3. Start investing
You’re never too young to start investing. Starting in your 20s could help you increase your wealth to afford things like buying a house and getting married, or even help you to retire early. Through investing, you’ll learn more about how money works and will understand more about its value. You have different options for investing such as property or gold with lpm.hk, giving you different options according to your interests or available funds. Speak to others about how they invest their money to learn more about how it works.
4. Be more frugal
When you start earning real money for the first time, it can be easy to start splashing the cash around. However, you could be enjoying things for a lot less if you were a bit savvier with your spending. Learn how to shop around, how to spot a good deal and how to make those big savings go a long way.
5. Learn to carry cash
Carrying cash can seem like an alien concept to someone in their 20s, thanks to cards, Apple Pay and PayPal. However, when you carry cash with you, you’ll think twice about spending it. Try to have a couple of days each week where you don’t carry your cards with you and see if you can save more money than you typically would in a day.
Learning to manage your money better in your 20s is a good way to prepare for your future. Start today, and by your 30s, you’ll be ready for those next big life moments without having to worry about your financial past.