How To Grow Your Finances In Your 20s

Financial health and independence are traits that we all strive toward, but obtaining them in your 20s (especially during the current climate) can feel impossible. This is perhaps why it’s so frustrating when older relatives inform you that by the time they were your age they had a house/mortgage/cars etc.

According to a recent study: 

• In recent years, 22-29-year-olds have become less likely to own a home.
• 53% of 22-29 year-olds have no significant savings set aside.
• 37% of young people have incurred financial debt. 

These statistics, coupled with the ongoing financial crisis may be a cause of concern for many, though it’s important to note that there are certain steps you can take to grow your finances in your 20s. 

Photo by Josh Appel on Unsplash

Here are some top tips to get you started.

Take some time to learn about money management. While many of those in their twenties will remember spending hours learning about Pythagoras’s theorem or the roaring 20s – classes on money management were few and far between (if you had them at all). A lack of education, therefore, may be the key culprit behind why many 20-somethings don’t feel all that financially savvy. As such, you should take some time to improve your financial literacy, focusing on developing an understanding of good money management. 

Consider getting involved in investing. If you have some expendable income set aside each month, getting involved in investing could be a great way to watch these funds grow. While many wait to invest later in life, the earlier you get involved in investing the better as this gives you the chance to seek out investments with long-term rewards. Of course, you should not get involved in any investment opportunity without first carrying out the appropriate research. For example, if you were looking for the best forex trading opportunities, you should ensure that you’re working with reputable companies, while also ensuring you understand exactly what it is that you are investing in. 

Keep an eye out for passive income opportunities. Believe it or not, it’s entirely possible to gain financial independence through passive income, meaning you might not have to put as much effort into earning more money as you initially believed. For example, there are plenty of internet-based money-making methods that you may want to consider, such as selling your old photographs to stock photo websites. 

Know your worth at work. Knowing your worth within the workplace could also be instrumental in growing your finances, as it will leave you more empowered when it comes to asking for a raise or applying for higher-paid jobs. If you are considering asking for a raise, do your research ahead of time. Put together bulleted lists of reasons you deserve the promotion. For example, you could refer back to client feedback. You should also see what the standard salary is for your role in other companies, as you may be able to leverage this for higher pay. If your boss is unwilling to offer you a pay raise (and your request is within reason) that could be a sign that it’s time to look for new work.