Most Practical Financial Advices for the 20 Somethings

For most people their 20s are the time of their life. It’s the time when they are discovering themselves, exploring the world and living their lives. But, your 20s especially the mid and late 20s are also a crucial time to make some serious investments towards your financial future.

There are many who regret that they didn’t start with their financial management early in their life. When it comes to financial future like your retirement, it is best to start investing as early as possible. From paying off your student loans to starting a retirement fund twenties are the best time to get started.

There are many financial advices that are worth following and they are as practical as it can get.

Here are some of the best financial advices you can follow:

  1. Learn About Finances

Your twenties are the best time to learn about the personal finances. It is high time that you learn little something about personal finances, debt management, investing, savings and other important things. You can simply go online and read interesting blogs about personal finances and related topics. Or you can buy books on finances as there are plenty of books available. You can seek help from your near and dear ones, especially your parents who have better understanding of such things.

  1. Start Saving Early

Saving early is the best financial advice you will get from any financial expert. As soon as you start earning think about saving however small amount that is. Saving is a discipline that will keep you on track and help you achieve your goals faster. Starting early gives you the advantage of staying ahead of time. It also means you can save more for your retirement as well, which is very important for any person.

  1. Learn to Manage your Debts

When you are in your 20s you have plenty of things on your plate including your debts. Whether it’s the student loan that you need pay off or credit cards bills that need taking care of, you need to learn how to manage them efficiently. Debts, no matter how small they are dangerous. Without warning they can get bigger and threaten your financial health. So it’s important that you take care of them as soon as possible. Credit cards debts are the most common types of debts that people struggle with in their life.  Make sure that you don’t use your cards for unnecessary things. Having a healthy credit score is even more important especially when you want loan for buying a house or car in the future. Managing your debts is one of the key skills that should learn while you are in your twenties.

  1. Follow a Budget

If you are looking for some best financial advice this is one of them. You think you don’t need a budget just because you are 25? Think again. If you are planning on creating a healthy financial management system then you will need a budget. Budget keeps you on track by constantly reminding you of your limitations and what you need to do. Having a budget provides a sense of direction and helps you avoid the mistakes than can cost you your financial future. Prepare a list, budget and keep the records of all your financial transaction and be in control of your personal finances.

  1. Start Making smart Investments

One of the best ways to put your money on good use is to invest them smartly. Mutual funds are one of the best, safest and easiest types of investments that anyone can make. If you have enough money, then consider investing them in good schemes. Making smart investments opens door for additional income, which can add to the swell of your retirement fund. The best thing is the more investments you do more you learn about them. Over the time you are going to become an expert and make even better investments in the future.

  1. Build an Emergency fund

When you are in your twenties you have plenty of time to take risk and try new things. You might want to quit your job and start your own company. Or you may want to go on a solo trip across the world. Or recession hits again and you may find yourself out of job. These examples are not meant to scare you but to paint a realistic picture of it. An emergency fund can help in many types of situations. These situations can rise without warning and an emergency fund is one thing that can help you keep afloat when it’s get tough. It is the best financial advice that can help you secure your financial future.


Financial advices are meant to provide you with guidance for securing your financial future. For the twenty-something population these advices can help them create a strong base.

Start early and start saving now.