Search

Millennials Savings: Navigating Finances for the Future

From maxing out credit cards and taking student loans to delays in savings, we all have gotten off to a rocky start. Here are some valuable money lessons you should know in you 20s.
Millennials Savings
Millennials Savings: Navigating Finances for the Future
In this article

The 20s are a decade of self-exploration, finding your footing as an adult — and making money mistakes. Millennial money mistakes we can call it — or the current generation of 20-year-olds. And those mistakes are not constrained to a few. They are a little more than that, let’s be honest! So it’s important to learn money lessons from them.

From maxing out credit cards and taking student loans to delays in savings, we all have gotten off to a rocky start. But we don’t have to stay that way till we hit our 30s. To save you from learning the hard way — we have conjured up five money lessons for you to resort to in your 20s.

Get Serious About Your Goals

TIP: Know your passions and determine goals accordingly.

Your goals could be saving up for a down payment on a home or achieving a certain net worth before 40.  Identify what brings you joy and craft a financial plan to reach that goal. 

Figure out how much time you’ll need for a down payment and closing costs. You do the math and then work toward that savings goal over time.

Chalk Out a Personal Budgeting System

TIP: Choose a budgeting system that works for you.

Don’t put yourself in a moment where a stack of bills overwhelms you. Even if your budgeting system is defined in its lack thereof at present, suck it up and start tracking your spending. Keep at it, don’t slack. A simple budget can work wonders if you have a lot on your plate.

But if you’re a hyper-analytical person and you want to take the high road, a detailed budgeting spreadsheet might suit you. Whatever flips your pancake. Just ensure that you account for the money coming in and going out every month.

Learn From the Past

TIP: Don’t repeat old mistakes.

Did you know if you don’t put aside enough cash to cover taxes while working a contract gig, you will have to make monthly payments to the IRS for years to come? Ignorance is bliss but not when it comes to tax obligations. If you proactively manage your budget, you can pay off your tax debt.

Also, if you have a habit of making late payments, set up an automatic bill pay so you don’t have to worry about tracking due dates.

Build Financial Stability

TIP: Make savings mandatory.

Let your past in instability be your present guide on how to deal with financial challenges that pop up unexpectedly. Focus on building an emergency fund. Everyone needs one because emergencies come without warning.

For instance, a broken alternator on your car can completely drain your emergency fund, but it will prevent you from going into debt to cover the expense. Set up automatic transfers into your savings account. Make your money lessons worth it.

Make the Most of Long-Term Investments

TIP: Use your early years to boost retirement savings.

Seize your youth and make wise financial decisions for your future. Don’t waste your long financial time horizon. Don’t neglect to save for retirement. Foresee the power of compound interest via a retirement calculator. Or just talk to someone older, they will have some pretty interesting insights to give you. So go set up regular contributions to your 401(k). Go do it right now if you have to. 

Was this helpful?

Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!

👍👎

Author

Picture of Shirlene Grace Isaac

Shirlene Grace Isaac

Shirlene puts words on the Internet because she loves to do so and also for the money! She is a singer, songwriter, occasional poet, artist and muser — all in the body of a 20 something. She's a taleteller of sorts often looking for opportunities to narrate stories untold.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

Related Posts

how to make $10000 a month
How To Make $10000 A Month
Whether through affiliate marketing, becoming an influencer, blogging, freelancing, investing, or social media management, there are many opportunities for individuals to make $10000 a month. Read on to learn more.
How to make $500 a week with Instacart
How to Make $500 a Week With Instacart
By strategically selecting orders that minimize delivery distance, Instacart shoppers can optimize their earning potential by completing more deliveries within a shorter timeframe. Let’s explore how to make $500 a week with Instacart.
how to make $1000 a week with Uber Eats
How to make $1000 a Week with Uber Eats
There are exclusive reward programs on Uber Eats that can help riders make good money. Let’s explore how one can make $1000 a week with Uber Eats.
how to make $500 a day
How to Make $500 a Day
From blogging to flipping products to starting a dedicated YouTube channel to copywriting, there are numerous ways to make $500 a day. Read on to learn more.
How to make $200 a day
How to Make $200 a Day
Anyone can make $200 a day by doing affiliate marketing, blogging, delivering food, tutoring, babysitting, and even dog walking. Read on to learn more.
How to make $1000 a day
How to make $1000 a day
Everyone has fixed expenses that must be met every day or month without fail. Let’s explore how anyone can make $1000 a day to cover these costs.
Features
Essentials

Get up to $1,000 for emergencies

Send money to anyone in the US

Ger personalized financial insights

Monitor and grow credit score

Save up to 40% on car insurance

Get up to $1,000 for loss of income

Insure up to $1 Million

Coming Soon

File federal and state taxes at low cost

Quick estimate of your tax returns

Get up to $1,000 for emergencies

Send money to anyone in the US

Save big on auto insurance - compare quotes now!

Zip Code:
Zip Code: