By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Financial Slot
  • Home
  • Net Worth
  • Business
  • Save
  • Insurance
  • Wealth
  • Investment
  • Cryptocurrency
  • Loans
Reading: 8 Healthy Financial Habits To Start In Your 20s
Share
Aa
Financial Slot
Aa
  • Home
  • Net Worth
  • Business
  • Save
  • Insurance
  • Wealth
  • Investment
  • Cryptocurrency
  • Loans
Search
  • Categories
    • Technology
    • Entertainment
    • Travel
    • Fashion
    • Business
    • Politics
    • Science
    • Health
  • Bookmarks
  • More Foxiz
    • Sitemap
Follow US
  • Blog
  • Advertise
© 2022 Financialslot.com. All Rights Reserved.
Financial Slot > Blog > Save > 8 Healthy Financial Habits To Start In Your 20s
SaveWealth

8 Healthy Financial Habits To Start In Your 20s

Tolu Gabriel
Tolu Gabriel July 13, 2021
Updated 2022/08/12 at 6:17 AM
Share
9 Min Read
Healthy Financial Habits To Start In Your 20s
SHARE

The habits you imbibe in your 20s will impact you when you grow much older. The reality of this is more evident when it comes to the financial habits to start imbibing.

Bad habits can quickly become an ogre that’s difficult to get rid of when you turn 50. You’ll get more frustrated if you have not more than a few dollars lying in your savings for retirement at that age. Hence, the need to start, and start getting into healthy financial habits right now!

You may have passed the 20 something years, and still, need to cut off bad financial habits from ruining your future. It is never too late to start making amends to your life. If your habits yesterday didn’t give you the desired life you want today, you can always try something better today!

 

- Advertisement -

1. Take Budgeting Very Seriously

Budgeting might seem restrictive, but it is better to start getting into the habit now. Learning how to budget will help you guide where your money should go and also help you live within your means, unlike a spendthrift.

If you are new to the whole idea of budgeting, here are things you should consider to start budgeting.

  • Create your value list. Write down things you value and prioritize them in your arrangement.
  • Set goals. Think about what you’d like to achieve in some years, months, and weeks to come, and write goals that you’d like to achieve.
  • Figure out your income. Exclude overtime pay since it may not be necessarily steady. Consider your take-home, net income.
  • Figure out your spending. Try as much as possible to be accurate with determining your expenses. Review your credit card statements, checkbook register, tax, receipts, and others.
  • Create a budget. Ensure that your budget attends to your ‘needs’ first, then a few ‘wants’ that are within your capacity. Your expenses should not overwhelm your income. If it seems your income isn’t enough, adjust and cut some of your expenses.
  • Pay yourself. Save towards your personal, business, and family goals. It is also crucial that you create an emergency savings fund that would cover up to six months of your living expenses.
  • Take caution when using credit cards.
  • Review your budget periodically.

There are budgeting tools you can also consider to help you get ahead with budgeting. These best budgeting apps will help. And if you would like to involve your spouse, these budgeting apps for couples can be considered.

 

2. Pay Off Pending Debts

Debts can slow you down on attaining financial freedom. It is important that you get rid of them as quickly as possible to be able to focus squarely on your future goals.

So, if you have credit card debts, or student loans not cleared, you may want to get a second job, do odd jobs, or have a side hustle that can help you pay the debt as soon as possible. You are young – meaning you still have the strength to do all the hard work.

Taking loans isn’t totally bad if you are prudent and thrifty. Investing in your education and some career goals can pay off as a big-time investment in the long run. So, you do not have to necessarily avoid debts because you were told to but simply decide wisely to embrace the kind of debt that can help you increase value.

If you are aggressive with your debt repayment plans, you’ll be able to figure out a way to pay your debts, save, and still invest.

 

3. Invest Smartly

While you are being frugal with your money, look out for smart investment areas. For instance, you could choose to have a clunker for $2,000 or less. But if you consider replacing the expensive parts in the long run, you might want to have a rethink.

What about home appliances?  Go for the options that would save you water and energy, and furniture that will stand the test of time. They may cost you more, but would definitely not need to be replaced quickly. Invest in high-quality products

You can invest in stocks too. Invest in money market funds, high-yield savings accounts, real estate, certificates of deposits (CDs), Government bonds, corporate bonds, index funds, and mutual funds. Your 20s is a great time to begin.

 

4. Get Financially Inclined

Improve your handling of financial matters. Financial literacy can be acquired through persistent research, reading, and listening to experiences shared by financial gurus. You can listen to podcasts, read from financial bloggers, talk to people who are more successful and experienced. Learn new tricks, strategies, and tips constantly to help your money grow.

Being financially stable is very important to your success and you can start building up that safety net for yourself in your 20s to have a strong financial base.

 

5. Start Making Savings

Saving money may not seem convenient, but it is a necessary healthy financial habit to start in your 20s. Saving your future by planning for it should come as a top priority on your finances. Even if you are saving just $50 every month, you’ll find it easy to attain higher figures as you get into the habit of saving.

And if it seems difficult to save as little as $50 a month, then you might want to consider getting an extra hustle or job to get extra income. There are numerous online jobs you can choose from, depending on your free time and interests.

 

6. Open Separate Bank Accounts

Opening multiple bank accounts will help you stay on top of your finances. Assign different roles for each account you open. Save money for your plans in the different accounts and move around with only the card for your spending account. This will help you to avoid the temptation of spending what is on your savings account.

 

7. Selfishness Is A Healthy Financial Habit To Consider

You’re generous, nice, but this may be the reason you have been struggling financially. Being generous is good, but it may not mean what you think. Here’s what this means:

You may have been too quick to peer up with friends or partners in financial goals, and you end up getting the brunt of it when they refuse to keep up with their own part of the plan. Or you constantly had funds filling into other people’s plans at the expense of yours.

Your 20s are a beautiful time when you must get your financial independence in proper perspective. Learn how to make your money work for you and to achieve your financial goals to create your desired life.

 

8. Build a Positive Mindset

You may have heard or felt that rich people are always greedy, or that it is hard to be rich, or that money is evil and unimportant. Having a positive mindset is a great money habit.

Having this kind of mindset is extremely toxic to your future, as it gradually makes your thoughts become habits and will direct your mind towards areas you won’t care about. You can be financially free and extremely wealthy, but you must believe that it is possible.

 

You Might Also Like

This is How to Use the Mint Money Manager

The Cost Of A Financial Adviser In The UK

Personal Finance; Should Americans Live More Like Europeans? 

BEST BOOKS FOR FINANCE STUDENTS

Does a CFA help in learning personal finance

TAGGED: Finance, Financial habits, Healthy financial habits

Sign Up For Daily Newsletter

Keep up! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Tolu Gabriel July 13, 2021
Share this Article
Facebook Twitter Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
Previous Article dollars notes being spread in two hands How to Save Money for Your Big Financial Goals
Next Article How Much Can You Get In Student Loans How Much Can You Get In Student Loans
4 Comments 4 Comments
  • Pingback: 11 Financial Skills to Master In Your 20s (2021) - Financial Slot
  • Pingback: When to consider buying life insurance (2022) - Financial Slot
  • Pingback: How To Spring Clean Your Finances In Simple Steps
  • Pingback: The Importance Of Saving Money For Students & Ways To Save

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

- Advertisement -

Latest News

5 Things To Consider When Starting Your First Retail Business In 2022
5 Things To Consider When Starting Your First Retail Business In 2022
Business August 12, 2022
Soft and hard credit checks
Soft and hard credit checks – What is the difference?
Credit August 12, 2022
Can bitcoin replace bank notes
Can bitcoin replace bank notes?
Cryptocurrency August 11, 2022
Four ways in which bitcoin can benefit your firm!
Four ways in which bitcoin can benefit your firm!
Cryptocurrency August 11, 2022

You Might also Like

this is how to use the mint money manager
BankingWealth

This is How to Use the Mint Money Manager

August 2, 2022
woman consulting the cost of financial adviser in the UK
Wealth

The Cost Of A Financial Adviser In The UK

August 2, 2022
americans live live europeans
EducationNet WorthSave

Personal Finance; Should Americans Live More Like Europeans? 

July 31, 2022
BooksWealth

BEST BOOKS FOR FINANCE STUDENTS

July 30, 2022
//

We educate over 20 million users on personal finance, wealth and asset management through our network of finance blogs

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Financial Slot
Follow US

© 2022 Financialslot.com. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?