Often times, one’s 20s are filled to the brim with major milestones — from graduating college and entering the workforce to settling down and even starting a family. Although each of these life events are exciting in their own right, they come with a host of major changes that can take an emotional and financial toll.
Therefore, it is imperative for those entering this stage of life to keep their eyes firmly focused on the future and keep a level head, especially in regard to the ways in which they manage their money. After all, it is all too simple to fall into debt during times of major transition, but such a choice can, and usually will, take years to rectify.
With that in mind, let us highlight some of the most valuable personal finance tips for every 20-something.
Remain intentional about your financial plan
As previously mentioned, it is unbelievably easy to throw one’s financial plan aside when they are met with a challenging situation or transition. However, it is imperative you remember why you set off on this path to begin with. Perhaps you wish to purchase a house within the next three to five years, or have your student loans paid off in seven years rather than ten.
Regardless of your reasoning, you absolutely must remain diligent in your efforts, no matter how tight your finances might get. You will certainly be rewarded for your efforts in the long-run.
Find new ways to increase your income
If you find that you are really struggling with running financially lean, perhaps you should consider finding new and unique ways to maximize your income. This feat could be achieved by gathering up your neglected clothing or household items and selling them online, by placing a focus on your talents and starting a side hustle, or by picking up a part-time weekend job.
Either way, whatever additional income you receive can either be used to further pay down debt or to pad your monthly discretionary spending allotment.
Believe it or not, credit cards can actually be used for good. After all, one cannot really have a strong credit history without a card or two. However, it is important to utilize each account intelligently, meaning you do not treat your line of credit like it is free money.
Therefore, you should only use credit cards for small- to medium-scale purchases that you know you can pay off immediately. Otherwise, you will only worsen your financial standing by adding paying off credit debt to the list of other financial goals you wish to achieve.
Finally, it is important to note that the largest proponents here are time and perseverance. You will certainly not achieve your financial goals overnight, so remembering that you are on the right track and consistently striving to improve your saving and spending habits are absolutely crucial, especially during the first few months after a major transition.