When you’re in your 20s, you might feel the pressure of adulthood. However, the 20s are the perfect time to create healthy habits surrounding the life you want to live. Set goals for your health, family, career and more. One of the areas you’ll need to prioritize is money. If you want to experience abundance throughout your life, it’s important to prioritize proper money management. Consider the following ways you can make this happen.
1. Money is a tool
Always remember to use money as a tool to help you enhance your life. Money is a tool you can use to pay your bills on time. You can use it as a tool to help you experience different cultures through traveling. You can use it as a tool to help you build wealth through real estate investing and stock trading. When you use money as a tool to help you live the best life you can, you’ll decrease your chances of being controlled by money. When you know that money doesn’t rule you, you’ll be able to maintain a proper understanding of how to manage it correctly. Also, money can be a tool to allow you to be financially generous to those in need. When you’re able to help others pay for college, purchase groceries or catch up on their rent, you become a person who’s able to help your community progress.
2. Budgeting is important
It is important to track to a monthly and annual budget in order to stay informed of your own financial situation. Knowing how much you have coming in and going out will help you plan for savings, trips, and emergencies. Another common myth is that all borrowing is bad, but everyone in their 20s should know there are plenty of unexpected situations where borrowing money may be necessary. You may find yourself taking out a mortgage in order to buy a home, working with online installment loan lenders to cover emergency expenses from an unexpected hospital visit, or securing a loan from an auto lender when buying a new car. These expenses should be accounted for in your budget just like other bills and savings funds.
3. Become a student of money management
Money management is a learned skill. Unfortunately, there aren’t that many people who learn this skill in school. This is why it’s best to take matters into your own hands. Each month, read a new book that teaches you more about how to build wealth and manage your money wisely. Develop relationships with people who are great with money. Ask them about the books they read. It’s also okay to follow public figures who you know are great with money. People like T. Harv Eker, Warren Buffett and Shawn “Jay-Z” Carter are a few public figures you can learn from. As you read books, it’s also great to listen to podcasts and other informational content. As you learn different strategies, work to include them in your personal finance regimen.
4. Never follow the crowd
If you log on to any social media platform, you’ll see people who are enjoying Sunday brunches at the hottest restaurants in town. You’ll see friends who are always on another vacation. You’ll see pictures of fashion-forward friends and immaculate weddings. Though it might be tempting to enjoy the finer things in life, you don’t know what they’re sacrificing in order to experience those things. This is why it’s so important to live within your means. Instead of going out to brunch on the weekends, purchase a carton of eggs, some pancake mix and some orange juice. Invite a few of your friends over for brunch. You’ll save tons of money while enjoying a delicious meal with friends. If you know that you’ll want to go on a vacation at the end of the year, save up for it. Set aside money every two weeks. Search for ticket prices that are within your budget. Look for inexpensive deals. Use points and miles to pay for parts of the trip. When you’re savvy with your spending, you can enjoy a lavish life on a budget.
As you adopt a healthy mindset around money in your 20s, know that it will benefit you tremendously in the future. While it might require some initial sacrifice, you won’t regret it in the future. Remain focused on your financial goals, develop mentorships and execute with precision.