“How to be smart with your money in your 20s”- Do you want to make smart moves with your money? Well, being smart with your money will help you to grow financially.

In my 20s, now I am observing my cash flow, learning to be smart with my money. Money management is a skill which one has to learn day-by-day. I’m also implementing various ways to handle my cash flow smartly.

Smartness with money can not be created in one day. You must inculcate the habit in your early 20s to be smart with your money. In my current blog, I’d like to share my experiences of being smart with money.

How to be smart with your money in your 20s?

How to be smart with your money in your 20s?

You can actually be smart with your money by handling your money well. Learn the art of spending money wisely, know about money-saving hacks and pay attention to your cash-flow to manage your money smartly.

Do you have financial goals? Are you implementing practical ways to save money in your 20s? Well, saving and spending play an important role too when it comes to reaching financial goals. Smartness required to balance your saving and spending.

Frugal living leads to smartness with your money

If you ask me about how to be smart with your money in your 20s. My answer will be “be frugal”. Yes, I think that being frugal means being smart with money.

Being frugal means living your life smartly with less spending. But it doesn’t mean that you should compromise on the quality of life. Here what I’m trying to say is- learn to get a good quality of life with less spending.

10 Practical ways to BE SMART WITH YOUR MONEY in your 20s

Now I’m on the journey of frugal living. I implement practical ways to be smart with my money. I always try to avoid spending money on unnecessary things.

Let’s see which aspects one should consider to be smart with money in one’s 20s.

1.     Be careful while choosing your career goals in 20s
2.     Read books in 20s to improve knowledge about finance
3.     Focus on your health without spending a lot of money
4.     Invest in yourself in your 20s
5.     Inculcate good habits, avoid bad habits to save more
6.     Choose your friends wisely in 20s
7.     Discuss and talk about finances with your parents, siblings and friends
8.     Share financial responsibilities in your 20s
9.     Team work helps to be smart with money
10.    Avoid impulse buying in 20s

1. Be careful while choosing your career goals in 20s

Investing money to build your career is a smart move. But here I suggest you to have a pre-plan about your career goals. You must invest your money in the right career option. Which must benefit you in the long run.

Choose a career which is suitable for you, where you can earn more money in future. So while choosing educational courses, choose wisely. Most of the time your single decision decides your future. Do not get trapped into the wrong career, where you lose money. And can not earn money in future.

How I made smart moves with my money

You know, after completion of my schooling I was getting advised to choose science stream. But I knew my strengths and weaknesses. I knew that science was not my cup of tea. So I didn’t waste my money by choosing the wrong career option for me.

Find smart ways to save money on your education. I finished my schooling in a government college without paying a single penny. So, if you have options like government colleges to complete your graduation with good teaching staff. Grab these kinds of opportunity to save your money in your 20s.

2. Read books in 20s to improve knowledge about finance

In my teenage, I was reading only my textbooks! I was not reading any other books. But now in my 20s, I’ve learnt how other books help to grow my knowledge about finance. So I feel one should improve financial knowledge, this will help you to manage your money well.

Few of my friends like reading books like fiction and non-fiction books. I’ve got inspired by these friends and started reading books. I prefer reading books which help me to grow in my life.

Which books I’ve read in my 20s which are helping me to handle my money?

I’ve come across many books related to money management. Some of my favourite books are – “Rich Dad Poor Dad”, “Think and Grow Rich”, “The Richest Man in Babylon”. These are all written by successful people in the world.

All these good books tell about how to save money. And these books helped me to create the right kind of money mindset.

3. Focus on your health without spending a lot of money

Are you health conscious? If yes, then that’s really a good thing. But are you spending a lot of money on gym, protein shake, exercise equipment? Well, now I’d like to share tips which help you to focus on your health without spending big bucks.

How to maintain good health without spending a lot of money in 20s?

You do not need to plunk down your money on the gym. Instead, watch YouTube videos and learn simple exercise. I too follow simple exercise. I use simple tools like skipping rope rather than investing money on costly equipment.

As I’m also in my early 20s, I can understand that for good health we need a protein-rich food and proper nutrition. But if you just search ‘protein products’ on the internet, you will find that all the products range between 2000 to 10,000 INR. But I suggest not to spend a lot of money on these products.

Do you know there are other food items also which are rich in proteins and you get them at a lower price? They are- eggs, soya chunks, natural peanut butter, pumpkin seeds etc. I also include these food items in my diet. Pumpkin seeds are my favourite. You can also try to include these food items in your diet.

4. Invest in yourself in your 20s

Grab all the opportunities where you can invest in yourself which helps to get the highest returns in future. Here what I mean is, invest money on the right things like books, professional course, personality development etc.

One must always invest to build one’s skills. Even I made smart moves with money. I invested my money in learning skills like computer, accounting, typing etc. You can acquire any skills which will help you to grow professionally. Such as learning a new language, speaking English etc

These are all very beneficial skills which will help you one or the other way. Invest money to build a particular skill is all about using your money smartly. This is what you should know about how to be smart with your money in your 20s.

5. Inculcate good habits, avoid bad habits to save more

Do you know YOLO and FOMO mentality? Well, YOLO means you only live once. FOMO means fear of mission out.

I have a cousin with YOLO mentality. He is in his early 20s and joined a job recently. He spends all his monthly income on branded clothes, shoes etc. Do you have this type of YOLO mentality?

Well, do not inculcate the habit of over-spending in your early 20s. This will be very hard for you to overcome this habit in future. In the very near future, you will end up taking huge loans in your life.

If you think you only live once. Let me tell you, this attitude invites money related problems in your life. So, you have to learn to be smart with money. Balance your saving and spending. This will help you to build wealth in your 20s.

6. Choose your friends wisely in 20s

In the 20s, we meet many friends. Because of new friends and new lifestyle one starts to get distracted by addictions. Such as smoking, alcohol etc. One starts to spend money on addictions. So, stay away from such a friend circle.

If you ask me, “how to be smart with your money in your 20s?”. I say, stay in good company of friends that help you to save more. Discuss topics like investments, interest rates etc with your friends. Share your knowledge and also get advice about savings from your friends. This helps to be smart with your money.

In my childhood, my friend inspired me to save money. I started to add coins to my piggy bank. Nowadays piggy banks are available in a fancy design. Which encourages children to save more money.

How to be smart with your money in your 20s?

This is the piggy bank which I was using in my childhood. I still have this. I still remember that I saved 7 INR for the first time in my childhood.

7. Discuss and talk about finances with your parents, siblings and friends

Always have open conversations about money with your parents and siblings. You must be aware of the spending habits of your family as well. If you have inculcated saving habits then share your experience about saving money with them.

Share your knowledge about finance and investments with your siblings. Also, learn from your friends and family. Know your sibling’s and family’s financial goals. Always be honest to your parents while talking about finances.

8. Share financial responsibilities in your 20s

Even if you are a student and not having a regular income, try to take small financial responsibilities. For example – save money whenever you get pocket money from your parents. And with this, you can pay your phone bill.

This type of small actions help you to create ideas to save more and make smart moves with your money. These simple steps will increase your wisdom-related money management.

Do you think 20s are very early thinking about financial responsibilities? Well, teenagers have already started to save money and making smart moves with money. So the second-best time is now in 20s for you to think about it.

9. Teamwork helps to be smart with money

Do you know when you can grow financially? It’s when you and your family work as a team to reach your common financial goals. Before taking any major decisions always discuss together. Such as taking loans or buying a house where a lot of investment is required.

Once my friend told me about her financial goal. But the sad part of her life is that her brother has neither any financial goal nor career goal. Because of this, she is struggling to reach her financial goals.

So, discuss with your family and siblings about your financial goals. Take support from your siblings to reach your financial goals. And you should also guide and support your younger siblings to grow them financially. This will empower each other and all of you will grow financially.

10. Avoid impulse buying in 20s

Have you ever purchased any product online without thinking twice? Well, nowadays the marketing industry is really a strong one. It focuses on impulse marketing which results in impulse buying.

Have you realised how many products you purchased even though those were not necessary for you? This is known as impulse buying. I practically follow few things while purchasing any product.

First I analyse whether it’s my ‘need’ or ‘greed’. I don’t buy anything immediately. I wait for a week or 15 days if I get an impulse to buy anything. You know what, most of the time our buying behaviour depends on emotions. And after waiting for 15 days our emotions also get changed.

How frugal living helping me to be smart with my money in my 20s?

I’ve inculcated a habit of saving money in my pre-teens. Many of my school friends were teasing me with the nickname ‘Jipuni’ (miser). But I knew the difference between being a miser and being frugal. I was taking their words in a fun way. I knew that I was learning to be frugal.

The early realisation of the importance of money helping me to be smart with my in my 20s now. During my college days, I’ve leant to handle peer pressure. I was not plunking down my money to buy costly gadgets and all.

But I can’t say that I’m totally frugal and very smart at handling money. For me being frugal is an endless journey. I think if we apply practical ways to save money in daily life, we become smart with the money.

So, don’t rush into financial decisions. Be aware of how to be smart with your money in your 20s. Be frugal and save more.

Hi. I’m Ankita. I’m here to help you adapt to frugality happily 🙂 I love learning new things. Nowadays I’m learning more about saving money and frugality. So on Frugal Beat together we will learn to create financial magic.

Now it’s time to walk towards financial freedom together. Reach out to me on Quora and Pinterest. Read my featured posts on YourStory, Women’s Web and Youth Ki Awaaz🙂

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