20 Financial Tips for Those in Their 20s – Part 1

15ebc7663f364d468f4aef732a57b247A good portion of older individuals look down at those in their twenties. It is understandable since many individuals in their twenties are foolish with their choices and money and have a bad rap of running to mom and dad when financial woes come up. If you want to be financially wise in your twenties and for many more years, follow these 20 tips:

1. Don’t Use Your Money for Status: In other words, don’t waste your money on things that you think you will make you cooler i.e. a high-end car, designer duds, and more. You may be impressing your posse, but bankruptcy and debt aren’t really that cool later on. Your friends that look like they have it probably have a lot of financial troubles too, unless mommy and daddy are there to help.

2. Limit Financing: You can finance just about anything, and you can buy virtually anything with a credit card. However, just because you can, does not mean you should. The more credit card debt you incur, the more you will regret it later. If you really want to make a purchase, then save up for it. That will save you from making poor choices on the fly.

3. Walk Away from Big Purchases and Think: Salesmen make their living from the impromptu drive of humans. They thrive off of the human nature to want something right this second. When it comes to big purchases, it is best to just walk away and think about it. Salesmen will try to tempt you by saying this deal will not wait for you, don’t be fooled. The bigger the purchase or investment, the longer time you should think about it.

4. Learn to Cook: It is a little shocking at how many young adults do not know how to cook. If you are one of those individuals, I don’t blame you. I blame our culture. However, this doesn’t give you an excuse to avoid the kitchen. Learn how to cook simple meals and then cook often. Think of it this way, every meal cooked at home instead of eaten out is like a $5 bill in your pocket. So cutting your eating out from three times a week to one will save you about $40 a month. So you can imagine how much more you would save if you ate out more than three times a week. Don’t be fooled; you can still make simple and delicious meals in apartments and dorms.

5. Reevaluate Your School Costs: If you are still in college, it is wise to look at your school costs before you graduate. Graduating with thousands of dollars of school debt will make life harder after school. “But I will be making so much money I can pay off my student loans quickly,” you might say. It is very unlikely. Sure, you may make quite a bit of money after college, but it is unlikely that you will pay off your student debt quickly. What can you do now? You have two options. First, you can transfer to a more affordable school. This is obviously easier when you are still in your freshman or sophomore year. Secondly, you can start paying towards your student loans right away. Let’s say that you will graduate with a student loan debt of $60,000. If you had spent your four years in college loyally paying $250 a month towards that debt, you would be $12,000 closer to paying off your loan. Haven’t started school yet? Save money by attending a junior college for GE classes and then transfer.

Those are just five ways you can save money while in your twenties. If you are in your twenties right now, how do you save money? Past the twenties? Then I would love to hear your financial regrets from your younger days.