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Smart financial planning for your 20’s

Many people develop their financial habits in their 20s, which can include acquiring debt and delaying saving. For those who want to secure their financial future and build a healthy relationship with their money, it’s important to follow a few tips for proper financial planning. This will not only allow you to thrive later in life, but can establish a secure foundation with your money and help you avoid stressful times.


Creating a budget is the foundation to financial planning and will determine how comfortable you are long-term. Make it a point to create a budget to determine how much you spend each month and what you’re capable of cutting out to ensure that you have more wiggle room. You should also budget for unexpected costs, which can include extra fuel or a car repair.

It’s also important to set aside money each month for luxuries or shopping to ensure that you reward yourself for working hard and can continue to have fun.


One of the many pitfalls of adults who are in their 20s is acquiring too much debt due to a lack of self-control. It can be easy to rack up thousands of dollars in credit card debt, especially if you don’t have stable work history. Make it a point to set goals with paying off student loans, auto loans, or credit card debt that you’ve acquired. It’s also important to avoid late payments and pay more than the balance each month to increase your credit score.


An emergency fund is crucial to establishing strong finances by being prepared for unexpected events that are prone to occur in life. Many people suffer from stress when they have car repairs or have to make an emergency visit to the hospital and don’t anticipate the high costs. Instead of relying on credit cards to cover the fees, build an emergency fund that you can use when it’s really needed. This will help you to prepare for the worst and can avoid going into debt.


Using cash is an effective way to avoid overspending when it comes to purchasing groceries or going shopping at the mall. Studies prove that people are more aware of how much they’re spending when they have to physically give away their cash rather than rely on a credit or debit card. You can also use an envelope system, which separates your money into different categories with each paycheck. Once the money runs out, you’ll need to wait until you get paid again to spend more. This can prevent overspending with your budget and will establish discipline with your finances.

Keep your budget and financial goals organized with our budget planner template