If you are in your 20s you may feel like a fully formed adult, but the truth is you aren’t just yet and you have a lot of life ahead of you. With that may come hardships and struggles, including financial ones. Many people in their 30s, 40s, and beyond regret not managing their finances better and making smarter financial choices in their 20s, so here are 5 financial tips if you are in your 20s right now. 

Start Saving For Retirement Now

Retirement may seem so far away for you that you don’t even think about it. You may assume that you have so many years to save that you don’t need to start now. But reaching retirement age is expensive, especially if you end up having to live in an assisted living community, and you can’t rely on anyone else to pay for these things for you. Even if your income is above average, it will still take you several decades to save up the ideal amount. So start a savings account now that you won’t touch until retirement. You may also see if your job offers a ROTH IRA or anything similar. Sometimes employers will help you save more so that you can save faster.

Keep Debts Low

Use credit cards sparingly and only take out loans when they are absolutely necessary and will benefit your future, such as student or home loans. If you have any debt, pay it off as quickly as possible and do your best not to rack up more. Keeping debts low is the best way to keep your credit score as high as possible and stay out of financial trouble. Learn this lesson now while you’re young and carry it with you throughout life. 

Choose Carefully 

Making careful choices about what you do spend money on is a lesson that many people wish they would have learned much earlier in life. There are so many things you will buy that you will either end up never using at all or will lose, break, or forget about. Before you make a purchase (especially a large one), consider whether this item is something you truly need or one that will last you a long time or be very useful to you. 

If you feel that you can afford it and it is something you really need, it’s OK to make purchases. Just be careful about what you spend on, because it really adds up and you may regret it in the future when you realize you’d rather have that money instead. 

Being in your 20s is hard enough when you aren’t thinking about finances, so throwing that in can make things even more stressful. But if you follow the tips on this list, your future self will thank you! 

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