Many older people tend to judge those in their twenties quite harshly. This is largely because young people can often be careless in their decision-making and financial habits, often relying on their parents for bailout during financial difficulties. If you’re in your twenties and aspire to manage your finances smartly, not just now but for the years to come, consider the following 20 tips:
1. Don’t Seek Status Through Money: Essentially, avoid frivolous spending on items to appear trendy or wealthy, such as fancy cars or designer clothes. Impressions based on material goods could push you towards debt and financial instability. Remember, friends that seem to have everything may also be burdened with financial issues, unless they are funded by their parents.
2. Curb your Borrowing: Nowadays, it’s possible to finance almost anything, and seemingly easy to acquire anything with a credit card. However, just because it’s possible doesn’t mean it’s a good idea. The more you rely on borrowed money, the more regrets you may face down the line. Instead, delay gratification and save up for big-ticket items. This practice will protect you from hasty and potentially regrettable decisions.
3. Pause Before Large Purchases: Salespeople are experts at triggering our instinctive impulse to acquire things instantly. So, when faced with a large purchase, slow down, step away, and allow yourself time to think. This is especially true for big investments. Even if a salesperson insists the deal won’t last, don’t be swayed. The larger the transaction, the more time you should take before deciding.
4. Acquire Cooking Skills: It might come as a surprise, but a significant number of young adults lack basic cooking skills. If you’re one of them, don’t worry, it’s a societal issue rather than a personal one. However, this should not be an excuse. Get acclimated with the kitchen, learn to make simple dishes, and cook regularly. Consider it this way, every home-cooked meal is equivalent to saving money, compared to dining out. Even a slight reduction in eating out can add up to substantial savings over a month.
5. Reconsider your Education Expenses: If you’re still studying, it’s important to reassess your educational expenses before you graduate. Substantial education debt at graduation will make your life more difficult afterward. You might think you can easily repay your student loans with the high post-graduation salary. However, in reality, it takes much longer than anticipated. What can you do? Here are two proposals. First, consider switching to a more affordable institution (easier done in your first or second year). Second, you can start making payments towards your student loans immediately. If you haven’t started school yet, save money by taking general requirement classes at a community college before transferring to a four-year establishment.
These are just five ways to manage your finances effectively while in your twenties. If you’re in your twenties, how do you save money? If you’re past that age, we would be glad to know about any financial lessons you learned from your past experiences.
