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Things I Wish I Knew About Money & Finance in My 20s

Shirel Berchowitz Updated: October 29, 2023 • 4 min read
Young woman smiling at coffee shop

Key Points:

  • Saving money is more than just a good habit - it's a mindset that can help you achieve financial security and a prosperous future.

  • Taking control of your finances and making wise choices can pave the way for a brighter future.

  • Managing money is more than just earning and spending.

Navigating the world of money and finance can be a rollercoaster ride during your 20s. Looking back, there are several things I wish I had known earlier. If you're approaching your 20s or already in them, here are some valuable insights that might help you make more informed decisions.

Understanding the value of each dollar and making intentional choices that pave the way for a secure future.

The Art of Saving

Saving money is more than just a good habit - it's a mindset that can help you achieve financial security and a prosperous future. By being intentional with your spending and making deliberate choices, you can create a strong foundation for long-term financial stability. This means developing a budget, tracking your expenses, and identifying areas to reduce unnecessary spending. It also means investing in yourself by acquiring new skills, pursuing education, and seeking opportunities for career growth. Taking control of your finances and making wise choices can pave the way for a brighter future.

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How Much Should You Save in Your 20s?

It's a common question: how much can you save in your 20s? While there's no one-size-fits-all answer, starting saving early is beneficial. It can make a difference in the long run, even if it's just a small amount. Consider setting aside a portion of your income regularly. Over time, you might be surprised at how it adds up.

Tips on How to Save Money in Your 20s

Saving money doesn't mean you have to live a frugal life. It's about making smart choices. Here are some possibilities:

Opt For Home-Cooked Meals Over Dining Out

Cooking at home saves money, ensures healthier meals, and can be fun. Look up online recipes and tutorials to get started. Host potluck dinners or themed cookouts with friends if you miss dining out's social aspect.

Buy Quality Rather Than Cheap Items That Break Easily

It's tempting to go for cheaper options when shopping, especially on a tight budget. However, investing in quality items, whether it's clothing, electronics, or household goods, often means they last longer and perform better. Over time, this can result in fewer replacements and repairs, saving you money in the long run. Think of purchases as investments: buying a slightly more expensive pair of shoes that will last for years is better than a cheap pair that needs replacing every few months.

Find Discounts and Deals

With the rise of online shopping, there are countless opportunities to snag deals and discounts. Before purchasing, consider checking price comparison websites, using cashback apps, or looking for coupon codes. Additionally, many stores offer seasonal sales or loyalty programs that provide exclusive discounts to members. By being a savvy shopper and doing a little research before hitting the 'buy' button, you can save a significant amount on your purchases.

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How to Manage Money in Your 20s

Managing money is more than just earning and spending. It's about understanding where your money goes and making decisions that align with your goals. Here are some ways you might manage your money:

Track Your Expenses to See Where Your Money Goes

Keeping a detailed record of your daily expenses, no matter how small, can provide a clear picture of your spending habits. You can identify areas where you might be overspending by categorizing your expenditures, such as food, entertainment, and transportation. This practice not only helps in creating a realistic budget but also in making informed decisions about where to cut back.

Set Financial Goals for Your 20s & Work Towards Them

Your 20s are a pivotal time to lay the foundation for your financial future. Start by identifying short-term and long-term financial goals. This could range from saving for a vacation or a new gadget to more significant goals like buying a car or investing in property. Once you have a clear vision, break these goals down into actionable steps. For instance, if you aim to save a certain amount by the end of the year, determine how much you need to set aside each month to achieve this.

Apps or Tools That Help You Monitor Your Finances

In today's digital age, numerous budget apps and online tools are designed to simplify money management. These platforms can automatically track your expenses, categorize them, and provide visual insights into your spending patterns. Additionally, many apps offer features like setting up savings goals, sending reminders for bill payments, and even offering investment advice. Integrating these tools into your daily routine lets you stay on top of your finances with minimal effort.

See here: Saving Growth Calculator

The Bottom Line

Your 20s are filled with opportunities and challenges. While I've shared some insights from my journey, remember that everyone's path is different. If you're looking for tools and resources to assist you on your journey towards financial freedom, consider exploring what Lendstart has to offer. We're here to provide insights and possibilities to help you navigate your financial journey. After all, it's all about finding what works best for you.