Making small, foolish decisions with your money in your 20s can have a significant impact in your overall financial health down the road. It’s important to set good financial habits while you’re young so you don’t have to play catch up as you grow older. Now is the time to get a solid grasp on your finances before you are struggling to hang on later in life.

These 5 tips will get you started in the right direction:

1.) Start Investing

The sooner you start investing and letting your money compound the better off your finances will be in the long run. An extra few years of compound interest can make a world of difference down the road.

2.) Contribute Enough Into Your 401(k) To Get The Maximum Match From Your Employer

Not only is the money that you contribute into your 401(k) tax deferred but if your employer matches your contributions then it’s essentially free money! Who could turn down free money?

3.) Send Some Of Your Paycheck Directly To Your Bank Account

Set yourself a weekly spending budget. Put the rest of your paycheck into the bank. Make saving money easy and habitual.

4.) Think Rationally Before Making Large Purchases

How many hours of work will it take to afford that large purchase? Is it worth it? Take some time to think over the decision and make sure you’ve considered all options.

5.) Set Goals That Motivate You

Set challenging but not unobtainable goals for yourself. Setting goals that you know are too easy won’t motivate you and instead will make you lose interest. Set goals that you’ll constantly have to work towards to make happen. Set both short term and long term goals to keep you focused on smaller immediate goals as well as larger longer term goals.


The decisions that you make in your 20s will impact your financial health more than any other decade if your life. Now is the time to build a solid foundation to build an empire on! With some discipline and forward thinking anyone can give their finances a great head start.



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