9 Smart Money Tips for Your 20s

- in Life
Comments Off on 9 Smart Money Tips for Your 20s

It seems that our 20s are full of decisions. These are decisions that set us up for success down the road; the graduation from college, the start of a first job, and becoming financially stable. The financial choices we make in our 20s can reap many benefits down the road, so here are some smart money moves to make to get your adulting on the right track.

How to Invest in Your 20s: 8 Investment Ideas for Young Investors

Determine your cash flow.

Your cash flow isn’t just what you bring home every week in your paycheck. It’s the accumulation of all your bills and living expenses—it may be a number that’s drastically different from what you’re expecting. To determine your cash flow, it’s important to look at all your monthly expenses through a budgeting journal. Write down every expense you have for an entire month, and then minus this number from your monthly income. That’s your cash flow, which will give you a better idea of your wealth, investments, and how much you can spend on larger purchases.


You never know what will happen in the wild ride we call life, which makes it incredibly important to invest in insurance, so you are protected at all times. One example of this is income protection insurance. What is income protection insurance? This insurance policy pays benefits to policyholders who are incapacitated and unable to work due to an accident or an illness. Having this insurance policy will give you peace of mind that you will be financially secure no matter what happens.

investment fund for you to use during retirement. This is free money and really adds up over time — so you must take full advantage of it! A best practice is to ask your employer what their matching rate is and sign up to put the same amount of money away every time you are paid to get the most out of it. What’s better is that this money usually comes out of your paycheck automatically, so you won’t have time to miss it!


Do not ignore your debt, as ignoring what you owe can cause detriment down the road in the form of lower credit scores, problems finding a mortgage, and large interest payments. So as soon as you have secured your first job, make it a point to put a little bit down towards all your debts, no matter what.

iphone repair service instead of purchasing brand new, as this option is a cost-effective way to bulk up your wallet and save in case of emergencies.


Building up your credit history is important to do as soon as you can. So, apply for a credit card with a low limit so you can slowly but surely show financial lenders you are a trustworthy candidate when it comes to larger purchases and loan requests.

Become self-sufficient.

If you can, stop taking on loans from your parents and loved ones. Becoming self-sufficient is a great boost of confidence and will help you feel self-assured with your finances.

Buy, don’t rent.

Renting is throwing your money away for an asset that will not be yours when you move out. While it can seem daunting, consider purchasing a home before you rent something. You’ll save tons of money on the long road, and if you can’t afford to purchase a home of your own, there is nothing wrong with living with your parents. With these money tips in mind, you’ll be on your way to creating a solid monetary foundation for years to come.

You may also like

Best Casinos to Visit While in Egypt

The country of Egypt is commonly associated with