The Best Financial Advice for Your 20s

Below I put together some of the best financial advice for your 20s. If you fall into this age group, these money tips will ensure you get ahead of most of your peers during this time.

The Challenges With Finances in Your 20s

For many, what can be frustrating and holding you back on achieving better finances are some of the following: – Large student debt – Lack of financial literacy – Low paying job or career – Consumer debt

Delay Gratification

Teaching your mind to delay gratification will have a big and positive influence on your finances and throughout your adult years.

Focus on Income, Savings, Investing, and Expenses

Here’s the four areas to focus on during this time: - Income  – According to SmartAsset, average salaries for 20-24 year olds is $29,770 and 25-34 is $41,951. - Savings – With your income, you must focus on savings as well. - Investing – Start investing early in your company’s 401k plan (if they have one) or open your own IRA. Expenses – Lastly, you have to start paying attention to your expenses. What are your monthly bills?

Start Learning Even If It Isn’t Exciting

Make learning finance skills a priority, even if it is not too exciting for you. Your financial results will improve and that should be your motivation.

Stop Caring About What Your Friends Have

Whatever it is your friends are doing, do not try to keep up with them! Generally, they are going in debt to keep up appearances and not worried about future financial needs, so don’t be a victim to that trap.

Financial Planning in Your 20s

Creating a financial plan in your 20s means you must start thinking about short-term and long-term goals for financial health. It will help you make decisions to help you build your savings, a retirement plan, and adopt investment strategies to help grow your portfolio.

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