Achieving Financial Security in Your 20s

Many people believe that real financial security can only be achieved later in life, but that is far removed from the truth. While there is certainly some truth to the notion that many people spend their 20s ‘finding themselves’, it is still quite possible to make decisions that will greatly improve your financial prospects moving forward ( The decisions that are made during this ten year period, for example, can often make all the difference in the world in relation to if you spend your life in debit, or in freedom.

Avoid Living Above Your Means

It is often difficult to avoid the lure of wealth and material possessions. Many 20 year olds gain possession of credit cards for the first time, and they often develop spending habits that preclude them from developing the positive habits of investing and saving for the future. It is difficult to save for a future that many believe to be so far away. Live for today is still the motto of many young people around the world. Having a great lifestyle and enjoying what you do, however, does not have to come at the expense of your financial well being ( Develop a budget in your 20s, stick to it, and you will find that this will pay dividends later in life.

Pay Down Debt That You Have

Many 20 year olds cannot avoid debt. It is a part of life, as it is expensive to get started when living out on your own for the first time. There is college to consider, along with setting up a household. Spend wisely, and try to avoid debt when at all possible. When you do incur debt, however, work to pay it off as quickly as possible. In addition, remember that credit cards should be used sparingly, and they should be paid off at the end of every month. Develop this habit in your 20s, and you will likely continue living that like that in the future.

Develop Positive Savings Habits

You might have heard that every little bit counts, and this adage certainly applies to savings (ån/). Begin the habit in your 20s of saving what you can; even it is just a tiny fraction of your salary. This is important, as habits that are developed early in life are much easier to continue as you get older. This means that as you begin to earn more money later in life, you will begin saving more, which demonstrates that your financial security can begin early on as you are just starting out in your career.

Develop Marketable Skills

We live in a fast paced, and quickly changing society. To stay ahead, it is important to develop skills that you can use to make money. The more adaptable and flexible that you are, the better opportunity you will have to see increases in your overall salary year after year.

Develop these few lifestyle characteristics early on in your 20s and you will discover that financial security and independence is just around the corner.