by Lina Martinez

Your twenties are an exciting time in life- you’re a fully fledged adult capable of making your own decisions but there’s not too much pressure to get it perfect. It’s a time for growth, to learn from mistakes and to set yourself up for later in life. People’s lives often look very different in their twenties- some people are married with children by twenty five, some are focusing on their careers, others are travelling or out partying. However regardless of your situation your money situation is definitely tighter in this decade since you’re still working up in your job, getting experience and in some cases still gaining an education. For that reason, it’s worth getting into to smart financial habits now to put you in the best position later. Here are a few ways to go about it.

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Save Money

When asked what advice people would give their past self, one thing people say time and time again is ‘I’d tell myself to save money.’ Saving money really does put you in the best position for the future, a nest egg could be used towards a mortgage deposit, car, or even just as a buffer if you go through a rough patch in life. Even if you don’t know what you’re saving for right now, get into the habit of putting money away every time you get paid. If you find a savings account with a high interest rate, you will earn a little extra each year too with no extra effort involved.

Borrow Correctly

You don’t need to be afraid of lending money, in fact doing so will help you to build up a credit score which will benefit you in the long run. However it does need to be done correctly, since missed or late payments, defaults and ccjs will do the opposite and destroy your credit rating. When you apply for a loan, credit card, store card or anything else, make sure you check the interest rates. Borrow small amounts and make prompt payments each month, try not to carry too much of a balance since this is where you will start wasting money on interest. Be very wary of debt, and lend in a way that you’re not going to get over your head with money owed.

Don’t Loan Money

Ben Franklin said, “Neither a borrower nor lender be.” While he lived in a time before credit scores existed and credit was necessary, the second part still holds true. Don’t loan money to friends or family. It will save relationships and ensure you’re not broke. If a friend borrowed money and won’t return it, you might have to take legal action and that friendship is likely over.

Be Conscious of Value

Again, your twenties are a time for making mistakes and generally being a little selfish. This can mean wasting money on all kinds of fun yet unnecessary purchases, nights out, holidays, clothes and more. However as you mature it’s worth starting to make more sensible purchases and becoming more conscious of the value of things. Compare prices before buying things, or spend a little more money on products that will last when it comes to things like fashion, furniture and more. Be more aware of what you’re spending and try to keep frivolous purchases to a minimum so you’re getting the absolute most out of your money.

What financial habits are you hoping to lock down in 2018?