On your 20s you’ll encounter a lot of firsts: first job, first business, first self-earned money, first major failure. But don’t be afraid of that major failure, because it is a great teacher.
Like everybody is saying, you’re not a teen anymore. You will become more independent as years passes by. You will begin to live on your own – rent your apartment or house, cook your own food, survive your own problems, budget your own money.
There are lots of things to do in your 20s. I know it’s a bit harsh if you will force yourself immediately in the transition from being a teen to being a grown up, but you need to do these. You may go slowly but surely, or fast and furious. Whatever approach, you need to do these.
3 Major things you need to do with your money on your 20s
Save money, create a budget and monitor your cash flow.
What you really need here is to save money, and you can do that by creating a budget and monitoring your cash flow. It is very important to be aware of your cash flow especially on your 20s. You need to know where your money is going and you should make sure that the amount going out is less than the amount going in.
So, do it by creating a budget. You may write it on a paper or use any software like Excel or download any app that could help you. Never trust your memory on budgeting. Because no matter how good your memory is, it will definitely fail you in this field.
Learn to make quality purchases.
On this modern generation, almost everything that you want to buy is just a few clicks away. It’s always tempting and you need to survive those temptations by learning to buy quality purchases.
These are the things that have a value for you or will have a greater value in the future. You are the only one who have the power to recognize these things. You may also treat these things as small investments.
You may invest on insurance, stock market or any thing that will help your money grow. It is most advisable right at your young age. The earlier you start investing, the more time your money will grow.
Don’t be afraid, learn. You’ll never regret that in the future.
Contributed by: Karl Edison Macomb
Kris Edison Macomb is a Data Analytics Specialist on his day job, and a blogger and writer during his free time.
He is the founder of Pera Thoughts which aims to promote contents related to personal finance.
Aside from reading books (fiction and non-fiction), reading blogs, and blogging stuffs, he also spends his free time taking up online courses about different things like data science, digital marketing, e-commerce, personal finance, investing, trading, minimalism, etc.