The Kind Tips – Tips for Life, Study, Work and Entertainment – 6 Money Management Tips for People in 20’s

6 Money Management Tips for People in 20’s

6 Money Management Tips for People in 20's

The 20’s is probably the most carefree time that you don’t need worry about marriage, kids, mortgage and responsibilities. But since you are going to live with these in the near future, would you like to learn a little bit about money handling and management before you make mistakes? Are you interested in some tips from those who have been through their 20’s? I don’t know your thought, but here are some useful tips I wish I’ve got before my 20’s.

1. Avoid using credit cards.

No matter what the people from credit card companies promise you—cashback, free T-shirt, a certain percentage off your purchase, etc. Credit cards just get everyone in trouble. It is such a lure of easy money and the idea “I will pay this in full” for even mature people, not to mention young adults who are inexperienced.

2. Have a plan in mind.

Now you graduate from college and you should take some time to think about your life seriously. Set a yearly goal and goals for longer period, such as a two-year goal or a five-year one. Work out the steps to achieve the goals and also talk with friends who are handling their finance very well. Even if you can’t figure out some specific goals or plan, at least you should know what you want and also how to get there.

3. Live within your means.

When you get the first job, you may be enticed to buy a brand new car, house, some clothes and furniture. But please don’t do that and garage or thrift stores are the choices instead. At your 20’s, you should start to know the importance of saving, especially for emergency fund. While, that doesn’t mean you can’t spend any—splurge a little but never go overboard.

4. Murphy’s Law happens!

Keep in mind that Murphy’s Law does happen in your life and if something can go wrong, it will. Start to save a portion of each paycheck, even $50 dollar per month add up and can be helpful when emergency situation happens. So plan for emergencies and give yourself a cushion to handle with them.

5. Talk about finances before getting married.

It is not unethical or rude to talk about individual financial situation of a couple before they get married. If he or she has a lot of debt, you have the right to know it. Also, you should know how your soon-to-be spouse handle finances. The key to solve any potential problem is communication, so you should talk about money, your feelings about money and your individual families thought about money with an open mind. This is very important and you should do before you get married!

6. Have some fun.

If you can follow these steps before you stick with deep debts, you will live an enjoyable life and have some fun.

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