PERSONAL FINANCE

8 Smart Money Moves To Do In Your 20s

March 8, 2016

20’s is the perfect phase to get rich. It’s when we are more active, more motivated and more in the zone to do things for our finances. I am now 22 and my interest in personal finance grew stronger day to day. I have the strong desire to retire at 40 (Or earlier) and enjoy the rest of the years serving my ultimate purpose in life. 
But I know that not everyone is aware of the full potential they have as 20-year olds so this post will give a much needed information. Let’s try to be ahead of the financial game by these 8 Smart Financial Moves.


Learning to Plan for the Future
When was the last time you set a goal? Now when was the last you thought on what you want 5, 10, 20 years from now? Planning for the future is one of the best moves you can do on your 20s. And you actually owe it to yourself to have a concrete vision of what lies ahead.
It’s time that you set your own personal and financial goals. Simply write down the things that you want to achieve and accomplish. Remember to make them SMART
You can view my 2016 Personal and Financial Goals here for reference.

Develop Talent, Hobby or Skill that can make you Rich
Each one of us is blessed with a special talent, hobby or skill that can make us rich. It’s for you to find our what it is and do things that will develop it to be a profitable avenue.
Mine will be event hosting and freelance content writing, both gave me extra source of income for years now. Hosting weddings, debuts, milestone birthday parties has been my hobby turned profession for the past four years. Freelance content writing on the other hand is something I do on the side since I finished Bachelor in Journalism and I also have past experience as a SEO Content Writer.
I made a list before of Personal Financial Habits That Can Make You Become Richer you might want to check out.
Start Saving Money
Save while you are still young and able. When you are a fresh graduate there’s not much expectation for you because people will understand that you are still adjusting to the professional life. This is a good chance for you to save even as little as 500 pesos a month or per cut off. Make your savings automatic so you won’t miss it. READ: Saving and Investing Tips for 20-something
Start Investing
Investing should never be feared. The lack of experience and money to begin with maybe holding you but nowadays investing money is easier. There are a lot of platforms available to guide you and to teach you how to do it. One leading stock investment platform is COL. For beginners there’s Regina Online Investment too. It is also nice to to have your savings invested for it to earn more through compound interest. You can check below these two posts for investment options you could try: Investment Vehicles You Ought to Try | Investment Options You Can Try With Your Bank
My suggestion is to try Mutual Fund first and learn from it in 1-2 years time then start diversifying your investments with other vehicles after. 20’s is the best time to start investing because you are okay to take risk and commit mistake. Your future is not that at stake since you still have enough time to recover. 
Get Out of Debt or Not Be in Debt
This is something of high importance if your want to be smart in terms of your financial life. If you accumulated debt either personal, loans, credit card or debt of your parents then plan your way out of it. I created a series of posts about becoming utang-free that I you can check. Do not attempt to get a credit card if you are not 100% ready and prepared for it. Make sure to spend your money wisely and learn to live below your means.
RELATED LINKS:
  1. SavingsPinay Series | Day 1: Gaano Kalaki Ang Utang Mo? (Evaluating Your Debt)
  2. SavingsPinay Series | Day 2: 25 na Paraan Para Makapagbayad Ka Sa Utang (25 Ways to Pay Off Your Debt)
  3. SavingsPinay Series | Day 3: Organisadong Pagbabayad ng Utang
  4. SavingsPinay Series | Day 4: Tamang Pag-kausap sa Pinagkaka-utangan
  5. SavingsPinay Series | Day 5 | May Forever sa Pagiging Debt-Free
Build These 3 Funds of Your New Life
I shared this idea years ago I believe and I still find these funds as one of the smartest financial moves I’ve ever done. Building these three funds of your new life will give you a head start in your financially. What are these three funds?

  1. Emergency Fund
One of the best times to build an emergency fund is your 20s. An emergency fund is necessary to have an extra fund ready in case emergency happens such as death in the family, job loss or other natural calamity. READ MORE HERE…
  1. Financial Goal Fund
A financial goal fund is meant to help you get started in your bigger goals in life. You might want to invest in stock market or put up an online shop in future. This fund can help you make a big progress in life as it acts as your very seeds planted for future habits. READ MORE HERE…
  1. Fun Fund
Fun Fund on the other hand is to give you a special amount to use in leisure acts such as travel, hobbies, recreation and other personal matters. This is the money you spend to satisfy your happiness and personal goals. READ MORE HERE…
Learn How to Use A Credit Card
I got my first credit card as a supplementary holder to my eldest sister a year ago. Ever since I received my physical card I have never used it at all. I guess I have this big fear that I’ll be in a mess and end up getting in debt. So one big move you can do in your 20s is to learn how to use a credit card to your advantage. Know the tips and tricks involved to manage your credit card bills and have a good credit score that you could use in the future. 
Invest in Yourself
One great investment you ought to do in your 20s is to not be afraid to invest in yourself. Improve your skills, learn something new and widen your experience through travel and adventures. There’s no better investment one can do than investing in himself. Learn a new language, attend a conference or workshop in accordance to your field, travel, read new books that interest you and find a hobby that you’ll fall in love. 
Being in your 20s is such an advantageous phase. You have the time and the energy to work your way up. Opportunities will surely open up to you and all you have to do is grab it. As young as you are aspire to be the best version of yourself. READ: 7 Ways You Can Invest in Yourself
Thank you for reading this post.
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Any other money moves applicable in your 20s you can share?

Clariza Glino

Izza of SavingsPinay promotes financial literacy for the young and young at heart by providing insights and tips on budgeting, saving, investing and online entrepreneurship. Aside from this blog she also writes at www.izzaglino.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at izza@savingspinay.ph