10 Smart Money Moves to Make in Your 20s

Considering long-term financial objectives may be challenging when you’re in your 20s. You’re probably more worried about making rent and paying off your student loans than you are about saving for retirement. But if you want to make the most of your money in the long run, there are some things you should do in your 20s. Here are ten of them that will make a difference in your life.


1. Start a retirement saving plan

It may seem like retirement is a long way off, but the sooner you start saving, the better. If you wait until your 30s or 40s to start saving, you’ll have to save a lot more each month to catch up. If you start in your 20s, you can save less each month and still have enough saved up when you retire.


2. Commit to paying off your debts

If you have student loans or other debt, it’s important to start paying it off as soon as possible. The sooner you pay off your debt, the less interest you’ll have to pay. And if you can get your debt down to a manageable level, it will be one less thing you have to worry about in the future.


3. Allocate some money to invest in yourself

Investing in yourself is one of the best things you can do in your 20s. Whether that means taking classes to improve your job skills or investing in a hobby that you’re passionate about, investing in yourself is always a good idea.


4. Start building an emergency fund

An emergency fund is important and most people ignore it. Having an emergency fund is important because if you ever lose your job or face unexpected expenses, you’ll have some money to fall back on.


5. Create a weekly or monthly budget and stick to it

As your life is starting, make it a point to create a financial budget. A weekly or monthly budget will give you a bird's eye view of your financial status. When you know where your money is going each month, it’s easier to save and make smart financial decisions. Don't overspend with betting as it is tempting from the best casino app in India. If you gamble set budget limits.


6. Invest in a business

It doesn't matter if you're launching your firm or working with others by investing time and effort. However, starting a business or investing in a business are two of the best financial decisions you can make in your twenties. The beginning may be difficult, especially if you're marketing to a cold audience on Instagram, but once you get past the early phases, you'll have no trouble generating a lucrative source of income in this competitive market environment. If you are struggling to create a following on Instagram, there are several buy Instagram followers services that you can consider.


7. Live below your means (and steer clear of the shiny object symptoms)

You may be the least popular among your peers if you are not keeping up with the latest technological advancement or fashion senses. But if you wish to be financially stable, you need to be living below your means. Buying only what 'you need' and staying away from 'your wants' is a superb way to manage your budget.

Keep in mind that most glittering objects are only for show!


8. Automate your finances

One of the best ways to make sure you’re making smart financial decisions is to automate your finances. Set up automatic transfers into your savings account and have a set amount of money withdrawn from your paycheck each month towards debt repayment.


With today's technology, you can easily set up automatic transfers using a smart device in just a few clicks.

9. Sell stuff you don’t use anymore

You would be surprised how many items you can sell that you don’t use anymore. The average US home has around 300,000 items according to the LA Times. That might sound too much at a first glance, but it includes everything from paper clips to forks and spoons. 

Take a look around your house, and gather the stuff you haven’t used in the past year, or you won’t use. Those items can be old tech such as your older phone which you can trade in or a handful of used college textbooks which you can sell online.

10. Invest in real estate

Now, investing in real estate isn’t easy. You must have at least ten thousand dollars to pay for a downpayment. But, if you can get that house via a mortgage with a low-interest rate such as 3-4% then you’d be golden! Keep in mind though, in some mortgages interest rates can go up depending on inflation. 

The next move would be to get the house ready for living and rent it out. The money you would get from renting it out may cover your full monthly mortgage payments, and in 25 to 30 years, the house is yours!

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