When it comes to money, twenty-something year olds need to learn to grow up, and fast! Between the enjoyments of student loans, pressures to join the property ladder and paying into your first job’s pension scheme – paychecks are often in demand as soon as they are received.
So, with modern living costing a fortune, the youth of today are in dire need of creating a strong foundation for their future. Here’s a few top tips for getting on top of your finances and managing your money in your 20s.
1. Ignore your salary
When you finally bag that dream job you’ve been after for ages, chances are it requires a new lifestyle, which can also be pricey! You may need professional clothes, a new place to live or a new set of wheels, so great advice is to continue living like a student even after you start receiving a regular earning, or until you get a good handle of your incomings vs. your outgoings. (Without the damp student flat and poor quality diet, of course!)
2. Pay your debt off
Meeting your card payments in full every month should be your main financial goal, although sometimes that isn’t always possible and your credit rating can be affected. If you’ve built up some debt, pay cards off with the lowest credit limit first and begin to may full payments ASAP.
3. Plan your future
Plan your future and dare to dream big! Start considering where you want to be in 10 years and plan how you are going to get there. Whether its buying your first home or travelling the world – making a plan will really help you move towards them. Get an early start on saving for one of your dream goals and hopefully it’ll really spur you to achieve it!
4. Live at home
It may sound like an excruciating idea, but you definitely wouldn’t be the first twenty-something year old that moves back in with their parents to save a bit of money. Around 85% of new graduates move back home temporarily, giving themselves financial flexibility to sort out their finances, make a plan, get a job and start earning.
5. Save for retirement
Although retirement seems like forever away, you really can’t start saving for your future early enough! As soon as you get your first job, start saving each month to make reaching your retirement goals a possibility. Look into pension schemes at work or start a joint saving account with your spouse to encourage each other to save monthly.
Here at Scottish Debt Help, we are a debt solutions company who pride ourselves on customer service and helping our customers improve their financial situations. Our comprehensive range of services covers everything from mis sold PPI to debt advice and solution schemes. For more information or to find out how we can help you, please do not hesitate to contact our friendly and understanding team on 0800 011 2322 today!