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Personal Finance Advice for 20-Somethings

Personal finance is not usually a subject that is taught in high school or college. However, it is one of the most important areas of life to study, research and set a plan for success. The implication of not learning about personal finance in school is that many people get into their 20s with little or no knowledge of how to manage their money to maintain a comfortable lifestyle through this period and the rest of life.

It is worth noting is that the 20s is an age when various milestones that bring substantial lifestyle changes take place. Major life milestones like graduating college, entering the work force, getting married, buying a home and more can all occur during your twenties. It is essential to understand your financial situation and the necessary steps to be taken to avoid debts and set yourself up for financial success.

Learning self-control at an early age is key to financial freedom later in life. Differentiate between your wants and needs to keep track of your spending and money. The art of delaying gratification ensures that you get to enjoy your cash without accruing debts. However, credit cards can be used smartly to build up your credit score if you ensure you can pay off any items you charge. Reviewing your finances and income will help you set a realistic budget and allocate necessary spending, savings and discretionary income you can use. 

Obtaining stable employment is a good step towards securing your financial future. However, the pay for most entry level jobs will not be ideal to ensure you live a comfortable life while trying to accumulate savings in your twenties. Financial experts suggest that if you can, take up a side hustle to supplement your income. If not, sticking to your budget will be essential for savings success.

In addition to everything previously mentioned, it is essential to set up a savings plan to hit savings goals and stay on track. Saving should be purposeful through setting goals that have timelines. Additionally, if you have enough savings, you should research opportunities to earn higher interest on or invest your money in. However, you’ll want to be careful when making these decisions. It is advised to work with a trusted financial advisor to make larger financial decisions.

Setting a clear budget, clear savings goals and working your plan will help you set yourself up for financial success later in life. If you’re in your twenties and are looking to open checking and savings accounts to set yourself on the path to financial success, contact us today!

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