7 Financial Tips to Manage Money in Your 20s

Jul 20, 2023

By: Sethuraman S

Kickstart your financial planning

There's no question that a person's 20s often shape the rest of their lives. From kickstarting careers to starting a family, it's an age where people find their feet in the real world. As far as financial planning goes, there's no better ti...

1. Gain financial literacy

Most people start their careers in their 20s and often do not quite understand finance despite earning quite well. It's vital to make a conscious effort to learn the basics of finance and managing money. An important starting point is to understand the ni...

2. Start Budgeting

Irrespective of how much you earn, it is important to cultivate the habit of budgeting your expenses. Always keep track of your earnings and all your expenses. Make a note of the regular expenses and start budgeting for those at the very start of the month. Th...

3. Start Saving

The urge to spend all your income is pretty strong in your 20s, and even more so when you just start earning; But, there's no better time to start saving money and creating a buffer for a rainy day. Savings come in many forms including as a form of invest...

4. Set Personal Goals

The biggest motivation to plan your finances is to set personal goals. We all have personal goals that can range from a dream home, car, vacation, and more and there's no better way to achieve that than through financial planning. Using personal goals to ...

5. Only Borrow What Is Needed

While this might seem like rather straightforward advice, it is important to cover as much as you can in a downpayment and apply the rest for a loan rather than the other way around. The easy option is to always avail the maximum loan and reduce the downpaymen...

6. Get insured

Life is unpredictable and it is important to account for that variance. By ensuring you are insured on various fronts including health, home, and life insurance among others, you can always know that there's a safety net out for you. It is also important ...

7. Build Credit

You might be just starting out on your career but it's imperative to always keep track of your credit score. There's no bigger tool to help you move up the financial ladder than to maintain a higher credit score. If you don't have an existing cr...