Navigating Financial Waters as a Young Twenty-Something

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Being a young twenty-something is an exciting time. You’re out of the awkward teen phase and are really starting to feel like a ‘proper’ adult. You’re old enough to be responsible and independent, but young enough so that everything is still new and exciting- you have your whole adult life ahead of you filled with opportunities. In many cases you’re finished education, starting out in your career, driving and living away from your parents. Exciting stuff! However one thing that can really trip up those first starting out is finances. Successfully budgeting and running a home can be tricky, and all kinds of things can catch you out and you can end up in a pickle. Here are some of the ways you can successfully navigate tricky financial waters when you’re going it alone.

Get Out of Debt

Many of us in our late teens and early twenties end up in debt. We don’t fully understand the impact that lending irresponsibly can have, and when we’re being contacted offering credit by companies it really can feel like ‘free money’. If you’ve already ended up in this situation not to panic, depending on the extent of things either save hard to pay it off, or discuss a repayment arrangement with your creditors. If you’re in more serious debt, you could contact a debt management agency who can deal with things on your behalf and work to have interest frozen and repayments that suit your budget. Getting out of debt as early as possible allows you to rebuild your credit score and puts you on a much better path for the future. Sites like refinancestudent.loan even allow you to refinance your education payments and save you a heap of cash each year so that’s worth looking into as well. Unlike credit cards and other loans, a student loan is considered a ‘good debt’ since the money is spent on education to improve your life. But trying to bring down those costs is no bad thing.

Budget Your Money

Staying out of debt for good means having control over your money. Knowing what’s coming in, what’s going out and when allows you to pay the right amount to your bills each week or month. Rent, utilities, taxes, food, vehicle costs and more all need to be worked into your budget. Once your essential bills are accounted for, you can work out what you want to do with your remaining budget (if you’re lucky enough to have any leftover). There are lots of budgeting apps and softwares out there which make this simple.

Start Saving

One of the best things you can do with any remaining money is save it. Sure you can spend a little too and allow yourself a comfortable style of life, but putting some away religiously each month will help you no end. Having money saved gives you a buffer– if a big bill falls through your letterbox, your car breaks down or an appliance fails you have access to instant cash which can make the situation easier. Having a long term saving plan is useful too, if you can get onto the property ladder you set yourself up for a far more stable future.