15 Money Habits to Adopt in Your 20s

Saving money isn’t often something we worry about when we are young. Still, once we get into our 20s, that’s when the adulting starts, our careers are progressing, and we usually have more disposable income than at some of the other stages of life. This is the best time to start developing those money habits that will see you through life without suffering too much financial difficulty.

Here are some top tips to help you learn some great habits that will help you manage your money now and into the future.


Figure Out Your Finances

The first step for any money management scheme is to take a look at what you have. Where your money flows from and where it goes. So sit down with your bank statements and work out what income you have, when it comes in and then where it goes.

Separate where you spend your money into easily manageable sections. Such as going out, meals, clothes, shopping, hobbies, your rent, bills, phones and transportation.

You might be shocked just how much those nights out are costing you, but it’s essential to know this information before you can do anything else.


Work Out What Is Important

Your rent, debts and bills are the essential things to consider, so start there and write down how much you need to spend and how often.

Food and transportation are next. You need to eat to live, and most of us need some level of transportation to get to work and back.

Once you have worked out the essentials you can have a look at your lifestyle and spending habits and work out what things are most important to you. It could be that having a vast wardrobe of fashionable clothes is the most important thing or it could be those glasses of wine with friends in the evening.

Whatever it is that is most important to your happiness and well-being are things that are worth continuing to budget for.


Create A Budget

Once you know how much money you have and where that money needs to go, you can start to create a budget. There are lots of budget apps out there that can help you with this.

Make sure you account for the necessary things first and then look at what is left and create a realistic budget for the things you want to keep doing that cost money.


Separate Your Money Into Separate Accounts

A quick tip for money management is to have separate accounts for different purposes. One suggestion is to have a bills account where all your bills go out of, a food and necessary items account, a savings account and then a play or pocket money account that is used for treats and going out.

When you get your monthly paycheck into your main account, you can set up standing orders to move the money around to your various accounts. Then you can quickly see how much you have to spend in each account, Your bills should be accounted for and you won’t end up in your overdraft!


Make A Packed Lunch

It’s all too easy to get into the habit of buying lunch every day at work, but when you start to add up the costs, it can be immense! It might not seem like much at lunchtime, but by the end of the week, you will have spent a small fortune. So please save your money and your diet by making yourself a healthy lunch at home and taking it into work every day.


Be Careful Of Coffee

We all love a good cup of coffee or a great tasting tea but if you buy these every day from an expensive coffee shop they can soon add up. Get yourself a reusable travel cup and make yourself a coffee at home. Then you can still have your coffee during your morning commute, but you will save your pennies too.


Avoid Impulse Buying

It isn’t easy when you see something you love to avoid splurging and spending your money there and then but if you take your time you are far less likely to spend money on things you don’t need and will never use. Even taking a ten minute time out and then going back to the item you want can make a big difference.


Check Your Bank Account Before Buying

When you see something you want, to get into the habit of checking your bank account on your phone before buying it. This can be enough to give you a reality check when you can’t afford it and will provide you with the time to think about whether you want it badly enough to miss out on that night out you have planned.


Avoid Credit Cards

Credit cards are great to have as a backup, but they shouldn’t be used regularly. A small amount here and there soon adds up and can then become unmanageable so leave your credit cards at home in a safe place and only use them for more significant items or when you need it.


Give Your Savings Account A Nickname

Are you saving up for something special? If your bank allows it to give your savings account a name such as ‘my new car’ or ‘holiday with the girls’. This will help you to avoid taking money out of it because each time you do, it will feel like you are taking money away from that goal you want to reach badly.


Shop Around

Shopping around is an excellent way of saving money. It can take a small amount of time, but this is often worth it in the long run. Especially when it comes regular bills.


Library Card Money Saving Tips

Get A Library Card

If reading is a part of how you relax then invest a little bit of time into getting a library card instead of heading to a bookshop whenever you need a new read. Libraries are free for most things and have a great selection of books of all genre’s and type to choose from. They even refresh their collection from time to time.

Some libraries even have movie and music sections which for minimal cost you can rent out movies and music too.


Set Up A Gift Pool

Christmas and birthdays can be expensive times so have a chat with your friends and set up a secret Santa at Christmas instead of buying a gift for everyone. Pool money together for birthdays and special occasions too, so that you all spend a little less but get a bigger and better present than you could have if you all bought separately.

Everyone in your friendship group will thank you for bringing up this costly issue!


Save Where You Can

No amount is too small to save and getting into the habit of saving up for the things you want and need will save you the stress of debt and future financial problems. Even if it’s only a few pounds being put away into savings regularly, it will soon start to add up.


Review Your Finances Often

Getting into the habit of reviewing your finances and budget every month or few months will help you now and in the future. Those who aren’t afraid to look at their bank accounts tend to make better spending decisions day-to-day and often reach their financial goals quicker than those who don’t.

So spending a little time now and then will help you stay on track and build better spending and saving habits for now and the future.

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