Financial choices in your twenties

When you are in your twenties, the world seems like your playground. If you earn a steady income, you may feel that the twenties are the best time to have some fun as you may not have that many responsibilities. However, these are the times when you must make sure that your career is going on the right track. Amidst this new rush of earning and enjoying, you might overlook your money management. You must realize that if you start managing your money early, you will have enough in your bank after a few years which you can use to invest or spend.

The possibilities

Money management is not an easy task and most people make common mistakes at the early stages. That is why it is always better to look after your finance when you are young. It gives you plenty of time to experiment, learn and play around with your money. Moreover, most people in their twenties, more often than not, do not have as many responsibilities as those who are older. Making mistakes is the best way to learn and gain experience. With the right planning, your money management skills will improve faster and change for the better.


When you are in your twenties, saving money may seem like the toughest thing to do. Your income is not enough and you have a lot of things you wish to spend on. At a young age, you deserve some entertainment. However, you can still save a lot if you plan properly. Don’t just blow your money away. Your money management habits will pay you in the long run. Save a little from your income every month and invest it in an instrument like a Systematic Investment Plan (SIP) which gives you exposure to a mix of asset classes such as equities, stocks and bonds. Alternatively, you can also take the help of your parents to invest initially, until you get a hang of the functioning of the investing world.

Make future plans  

Every person in their twenties, dreams of foreign tours, cars and many more luxuries for their future. If you do not save from now, you will have to take loans for fulfilling these dreams in future. Some of the goals may even remain unachieved if you do not start to save from now. However, make sure that you invest keeping in mind the inflation levels for the future as money has the tendency to erode in value over time.

Avoid credit cards

We all know that having a credit card feels empowering as it gives you the feeling of freedom. However, credit cards become a problem when you are planning to save. This is because one can easily lose track of their spending and only know where they stand in debt at the end of the month. The money may not be directly going out of your wallet but it is ultimately going out of your bank account.

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