If you could give yourself some of the best personal finance hacks in your early 20s, what would they be? Like a lot of young people, we made some regrettable financial mistakes.
Most people in their 20s don’t really understand the value of money. We just want to live in the moment.
We don’t even bother to learn about personal finance until some sort of financial emergency happens.
If you have been putting off saving and investing, these are some of the best personal finance hacks I wish I knew in my 20s.
Best Personal Finance Hacks I Wish I Knew in My 20s
1. Save Money
Yes, it’s probably one of the best financial tips out there. When I was in my early 20s, all I wanted to do was spend money on entertainment.
Life was fun, life was risky, and I wanted all of that.
But my biggest advice to myself (and you if you’re in your early 20s) is to put a little bit away every week and month.
No, you don’t always need that weekend party with your friends or that daily cup of drink from Starbucks.
Just imagine how much money you could be saving right now if you have started to save $50-$100 every week or month for 10 years? Invest in a homebrew coffee maker and pocket the rest.
2. Don’t Sign Contracts You Do Not Understand
It’s so easy to sign something just because you feel like you should. It can be anything from a gym membership to some sort of yearly commitment.
If you know that you can’t even commit to something for more than 3 months, never ever sign an agreement that you can’t keep.
This is true especially if you are required to make a monthly payment on the contract.
3. Take Advantage of Package Deals
Most companies like to offer bundle package offers to get more business from you. From insurance, software to banking and car industries, if you search deeply, you will find bundle offers that you can take advantage of.
If you are planning on getting multiple services or products, might as well look into the companies and what they can offer you.
Most of the time, you will get a lower price than when you have to buy them separately.
4. Save Money For Travel and Travel in the OffSeason
Rather than using your credit cards to pay for your traveling expenses, start saving money for travel.
Every time you are planning for a trip, create a travel fund, and put aside a certain amount of money in it.
Yes, you can still use your credit cards during your travel but always make sure you almost immediately have enough cash to cover back the expenses. Another tip for travel is to travel during the offseason.
Flight tickets and hotel rooms are always way cheaper during shoulder or off-peak seasons. Besides, you will be able to enjoy sightseeing more due to the lesser crowd.
5. Aim to Use Cash as Often as You Can
Most people get into debt because they are unconscious of their purchases. But you carry cash around instead of just your credit or debit card, you become more aware of what you are spending.
It’s a lot easier to budget when you know exactly how much you have. There’s something about the physical act of taking the money out of your wallets that will make you double think about your purchases.
Try to use cash as often as you can especially on your everyday purchases. This way, you know when you’re about to run out of cash and more likely to stick to your budget plan.
Best Personal Finance Hacks I Wish I Knew in My 20s – Conclusion
No one is great with money right away. Some people have to go through financial struggles for them to finally understand the value of every dollar.
But if you put effort into learning more about growing, saving, and investing money, you will reach your financial goals.
One thing you need to remember is to never repeat the same financial mistake twice.