The Best Personal Finance Tips for Your 20s

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I am about to turn 25 years old this year… which puts me in my mid-20’s. Wow, time really flies!

And as much as I like to think that I know a lot about personal finance now, I know 5 years from now when I enter my 30s, I will look back and want to add a few more things to this list.

The tips I list below are tips that I wish I knew early 20’s that I would have found useful and that could have led me to make smarter financial decisions. I believe creating smart financial habits early on can set anyone up for financial success later on in life.

These are some personal finance tips that I currently live by and hope they will help you too!


1.  Stay FAR Away from Student Loan Debt

Some might even argue that it isn’t even worth going to college to begin with unless you are trying to get into a specific field such as being a doctor, an engineer, etc.

For example, I graduated with a Bachelor’s in Business within 3 years and I came out of it with a lump sum of student loan debt and a strong desire to never open another textbook again.

I truly believe that the best form of education is hands-on learning by getting a job and gaining work experience. 

I don’t regret going to college, but if I could give any advice, I would recommend completing two full years of community college first to make sure it’s something you actually want to do. Then, if you decide college is for you, I would recommend staying away from student loans because take it from me, that debt pill is a hard one to swallow.


2. Save Money for an Emergency Fund

Saving money is self-explanatory but during my teenage years and into my early 20s, I found myself buying a ton of consumeristic items that I didn’t need.

But saving up an emergency fund will ultimately lead to less stress, and will give you a better grip on your personal finances.

Having an emergency fund early on is extremely important in case you were to get laid off from a job, if you were short on cash to pay the bills one month or if an expensive emergency came up. I personally have a 6-month emergency fund built up, just in case. 😊


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3. Never Allow Yourself to Rack Up Consumer Debt

Along with student loan debt, consumer debt is not your friend. Consumer debt can include credit card debt, car loans, or basically any other type of debt that is incurred from buying stuff that you don’t need.

I am not saying that all debt is bad, nor am I saying that credit cards are the enemy. But racking up hundreds and hundreds of dollars in unnecessary debt that can’t be paid off right away is typically not a great idea.

I have definitely had my fair share of consumer debt in the past and trust me, the 10 minutes of excitement from purchasing and item does NOT outweigh the months and months it will take to pay it off.


4. Build, Build, BUILD that Credit Score

I have never had an issue with my credit score and it is actually something I started working on the minute I was able to apply for a credit card.

Your credit score will either make you or break you when you are trying to buy a house, a car, or even applying for credit cards. A good credit score will ultimately make your financial life a lot easier, and I would recommend this to be a priority to anyone who is trying to better their personal finances.

You can start building a good credit score by:

  • Paying all of your bills on time
  • Paying off your debt
  • Keep credit card balances low and pay them off quickly (and on time)
  • Don’t close unused credit cards
  • Dispute inaccuracies on your credit reports


5. Live Frugally

Living frugally was not something I did well when I entered my 20’s and I really wish I did. I believe that living well below your means and saving and investing your money is the best way to build wealth, even if you aren’t in your 20’s.

This means creating a budget, not spending money on unnecessary things, and finding ways to cut costs in order to save money. I would highly recommend looking for tips and tricks to start living below your means and finding ways to be more frugal.

Related posts:

10 Frugal Living Tips to Start Saving Money

Frugal Living: 10 Things I No Longer Buy to Save Money


6. Track Your Spending 

It’s difficult to live frugally without having a good starting point. I have used Personal Capital and for years to track my monthly spending and then I was able to properly create a budget and start living below my means.

This tip alone has helped my husband and I save over $300 a month on stuff that we had no idea was costing us so much money.

If you don’t know how much money you have coming in and out of your bank account every month, Personal Capital is a great start to learning more about your spending in order to cut costs.


8. Learn about Investing and Actually Invest!

Learning about the different investment options that are out there is SO important for your 20s. The sooner you start investing, the more wealth you will build, and the more money you will have to retire with. This could be looking into a Roth IRA, a 401k, an HSA (Health Saving Account), and other types of investments to build wealth.

I believe investing in the stock market is great for building wealth as well, but I think most people are intimidated by this because it’s not taught in school.

When I started learning about investing my money in the stock market, I started off using Acorns. Acorns is an app that helps you to automate your investing and is extremely beginner-friendly. This app lets you invest your spare change through round-ups which means your purchases will “round up” to the nearest dollar and Acorns will invest the difference.

Webull is another great app that helps with learning how to invest. The app is user-friendly and beginners have the option to try paper trading, which is trading without real money. This can help you learn how to invest without having to use your hard-earned dollars.

If you are interested in signing up for Webull, you can get up to two FREE stocks valued up to $1,400 after depositing $100 or more. Or you can get one free stock valued up to $250 by opening an account (no deposit required).

I highly recommend either of these investing apps due to their easy-to-use platforms and beginner-friendliness.


I hope these personal finance tips were helpful and provide value to anyone in their 20s and beyond. I would love to know in a comment if you have done any of these in your 20s and what was your experience?


If you have ever struggled with finances, these are the absolute best tips to start implementing to start reaching your financial goals. These are tips I have implemented throughout my 20's which have helped me optimize my financial habits. #personalfinance #personalfinancetips

2 thoughts on “The Best Personal Finance Tips for Your 20s”

  1. Great tips for someone in their 20’s! They use to teach finance and how to balance a checkbook in school. I remember when my kids didn’t know how to write a check! We should get back to the basics! Thanks for sharing!

    • Hi Denise! I definitely agree, finances need to be taught in school! Thank you for commenting!

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