For many people in their 20s, this is the period that they finally gain some form of independence, and earn some money. They are either about graduating from school, or in some cases gaining admission.
They also are at a point where they start making spending decisions. Ironically, most parents/guardians fail to teach them how to manage money. They end up developing wrong habits and spiralling downwards until life forces them to make hard changes. It doesn’t always have to be this way though.
Here are a few tips you can apply if you are in your 20s.
Live within your means
One of the biggest challenges you will face is living within your means. If you are lucky, your parents may still be responsible for a decent proportion of your bills.
Even if they are not, your bills would be quite low if you don’t have any dependents. Resist the urge to buy almost everything that tickles your fancy. Count 1.2.3, then ask yourself again. Do I really need this item? You have a lifetime ahead of you to buy luxuries.
It is never too early to ask questions about money. Ask. Ask. Ask. You probably would be opening your first bank account. Or being pitched all sorts of documents.
One of the silliest mistakes, people make is to sign financial documents without going through the small print. Do not do that. Ask your parents what mistakes they made. Ask your elder siblings, if you have any. Don’t repeat theirs.
I know it seems strange to start saving. What are you saving for? Either you earn enough to not bother, or you just have barely enough to survive on. Either way, you need to learn to save.
There is no amount that is too little to save. Thank God for shortcodes, and the various savings apps. Little drops of water gathered become tangible.
Build your skills
As a youth, the biggest asset you have is time. You have the time to learn as many skills as you like. It’s okay if you end up not fancying some. The experience will be worthwhile.
As you go up the ladder, you will have very little free time.
Take care of your health
Next, to time, your biggest asset is your health. I now you are now living on your own. The world is yours, so you think. Take good care of your health. If you don’t, you will pay dearly in the years ahead. Right when you are really beginning to make good money.
Eat right. Exercise. It is okay to indulge occasionally, but don’t make it a habit. Stay off drugs.