What to Do With Extra Money In Your 20s

single-image
Share this post!

This post may include affiliate links. We get a commission if you sign up with a partner; this commission is at no cost to you.

(Last Updated On: March 31, 2019)
what to do with extra money in your 20s

what to do with extra money in your 20swhat to do with extra money in your 20s

what to do with extra money in your 20s what to do with extra money in your 20swhat to do with extra money in your 20s

Ah, your 20s. While some people may consider it the best decade of their lives, some are filled with terror when they realize #adulting is harder than it looks. However, all is not lost! If you aren’t sure how to manage your finances, and you have some extra money on hand, here’s what you can do.

Save It

If you don’t already have an emergency fund in place, now is the time to start building one. It doesn’t have to have thousands of dollars in it, but having an emergency fund can be super helpful should something happen and you don’t have enough monthly income to cover it.

For example, job loss, car repairs, healthcare, or even vet bills can seriously damage your wallet if you don’t have the money to cover them. You never want to use credit cards when you’re desperate or emotional, so an emergency fund can come in handy. Plus, that means you aren’t borrowing money from people who are going to charge you outrageous fees!

PRO TIP: Digit is an AWESOME app that can help you save your cashola automatically. (Seriously, I love it and I’ve saved THOUSANDS of dollars for trips with this app. It connects to your checking account and transfers small sums of money from your checking to Digit. The money grows and FAST. Click this link to sign up if interested.

Invest It

Preparing now can save you a ton of headache in your future. Did you know the average retiree only has around $43,000 in savings? That won’t even last a year in most cases.

While this shouldn’t alarm you too much in your 20s, it’s never too early to start investing and preparing for the day that you’ll want to kick back, relax, and enjoy the fruits of your labor.

Invest In Yourself

Personal development helps you grow. If you have some extra money, why not learn a new skill? Or, go buy a few books that can help you gain investing or money knowledge. Or, you can even invest in a coach to help you grow a new business!

Whatever you can think of, use that extra money to invest in yourself, your wellness, your mindset, and your career. No one ever regrets investing to better themselves.

Treat Yo’ Self (Wisely)

There is nothing wrong with treating yourself from time to time. While overspending and compulsive shopping aren’t healthy, treating yourself to something you want from your “want list” isn’t a bad thing.

If you’ve had your eye on something for a while, and the extra money you have won’t go to waste on that item, grab it! As long as you’re meeting your other financial obligations, treating yourself is a smart move.

Get that massage so you can go into work refreshed on Monday morning. Treat yourself to a new purse that rocks with every outfit you own. Treat yourself to a nice brunch so you can finally spend time with your friends after working hard. These treats shouldn’t make you feel guilty.

When you have extra money in your 20s, it can be hard deciding what to do with it and if you’re making the right move. But your 20s can be a true stepping stone into an amazing and healthy financial future if you spend a little time preparing and checking in with yourself and your goals.

Want to reach your financial goals?

107 things checklist

Grab the epic list: 107 productive ways to save more money, make more money, and improve your life.

Signing up to get the list also unlocks access to weekly insider emails. You also consent to the Privacy Policy.

Powered by ConvertKit

You may like