4 Financial Fixes to Make In Your Twenties

Once you leave university and join the Real World, it’s time to start thinking about your finances. At university, you likely splurged your money on 3-for-1 shots, endless takeaways, one too many video games. And that’s cool. You’re allowed to be a little irresponsible at uni. However, all of this changes after graduation, and you need to get serious with your finances. This can be overwhelming, though, so to give you a hand, here are four financial fixtures to make in your twenties. 

Establish a Budget (and Stick to It)

Budgets are never fun. They are a constant reminder of how grown-up you’re supposed to be. But establishing a budget and sticking to it is a fantastic way to demonstrate financial intelligence and discipline. 

Not only will you prove to yourself you’re able to live on less than you earn, but you also give yourself a fantastic buffer and savings potential for the future. At some point, you’ll need a house, car, and all those other adult things; thanks to your budget, you can get them. 

Improve Your Credit Rating

Young people, generally, have a terrible credit rating, but it’s not really terrible, it’s more non-existent. They don’t have any history of credit, and so banks are unwilling to lend you money. However, this can make it difficult to rent or purchase a property or a car when you need them. 

You can find bad credit car finance specialists who will give you the support you need early on. Still, it’s useful to work on building your credit in the meantime. Apply for a credit card and use it for small but regular purchases such as your food shopping, phone bill, or filling up petrol. 

Save For a Rainy Day

Some people struggle with saving money. They see the cash come into their account, and they feel worried to transfer it into a savings account. Even though it’s not true, they feel like they’ve lost money. However, disciplining yourself to put a percentage of your paycheck away each month will put you in a confident position should an emergency happen. 

You may need to repair your car or have a sudden appliance disaster. Whatever it could be, you don’t want to use your current account funds to pay for it, as this could affect financial stability. Instead, you can dip into your emergency fund, which will feel like you’re not spending anything at all. 

Don’t Be Afraid to Take Some Risks

While caution is essential with your finances, you should also not be afraid to take a few risks. This doesn’t mean put all of your money on 11 Red at the casino, but rather do things that could pay off in the future. 

You can learn marketable skills, go travelling, or get into investing. With these ventures, you can boost your potential for earning and enjoyment and make the most of your twenties. 

A Secure Financial Future

No one in their twenties wants to hear about how to be responsible, but getting into good habits now will eliminate the risk of financial troubles in the future. Remember, it can take months (and even years) to become financially stable, but only seconds for it to all come crashing down. If you want to guarantee a secure financial future, start with these tips.

Show More