In your 20s is that period in your life where you experience a couple of firsts: first job, first house and most importantly that first paycheck from employment. With this privileges comes a feeling of being invincible and a false sense of security that “time is on your side” and therefore you can be as reckless in spending as you can get. The blatant truth however is that if you don’t manage your money wisely in your 20s there’s a very good chance you will lead a miserably life later. Here is what to avoid:

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Living within or below your means

Getting good money in your 20s usually comes with an irresistible urge to burn it just as fast and an appetite for opulence and the finer things in life. Living higher a lifestyle than you are able to sustain will only leave you miserable and deeply entrenched in debt. Leaving within or below your means enables you to save and lead a fairly stable life

Pay debts on time

It’s wise to start paying your helb loan and other student loans as soon you secure that substantial employment. Putting it off will not help much and the painful impact will be felt when attain your 30s when you are probably married and have a family to fend for.

Creating a budget and tracking your cash flow

Impulse spending, especially on stuff that don’t contribute to your growth in any way will get you cash strapped so fast. It’s important to draw the line between needs and wants and prioritize needs such as housing, food before you spend hefty amounts of money on that night out with friends. Also keep a financial forecast of your income and weigh it against expenditure.

Getting a head start on investing

The saying “you are never too young to invest” makes a lot of sense in yours 20s especially if you are making a substantial paycheck. Investing comes with its fair share of lessons which are best acquired before attaining 30 when the expenditure grace period is over and you have to cater for huge bills e.g. school fees, medical bills. But unfortunately most young folks are hell bent on spending it as it comes.