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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.
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!
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.
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