How to Manage Finances Well for your 20s


Everyone will certainly have passed early adulthood or the transition from adolescence. Early adulthood occurs when a person is approximately 20 years old. When entering that period, a person has begun to find their identity.

Various kinds of changes also occur in a person who is stepping forward at this time. Starting from physical, mental, mindset, and other changes. One of the things that happens at this time is that the sense of dependence will decrease and turn into a sense of independence.

The feeling of having the freedom to live one's own life will arise. The outlook for the future will also change to be more realistic. These times are one of the most crucial for everyone. In addition to changes, many problems begin to arise with age.

The feeling of independence and the feeling of wanting to have freedom are two of the things that must be watched out for and get more attention from parents. It can happen in all areas, one of which is regarding finance. The ability to manage everyone's finances is different.

Some have the ability to manage finances well, the rest do not. Even though finance is important to carry out activities, especially those related to buying and selling,

If a person cannot manage his finances well, the money he has can be used for something negative and eventually damage the person's life. On the other hand, if finances can be managed properly, achieving success at a young age is not impossible.

In order to be able to manage finances well, especially for someone who is in early adulthood, a period where psychologically his soul is still vulnerable to being affected and volatile, the main thing that becomes a focus is income for early adults.

Considering that the lifestyle at this time is higher than that of children or the elderly, the expenditure will also be large. A person who is at this time gets income from their parents or the results of work.

Here are some financial tips for young people:


1. Create a Bookkeeping Budget in Writing

The first step that must be taken when getting income is to organize or make a written budget regarding the use of the money. Set aside some of the income received for savings. Savings can be an additional income for the future and also be used as emergency money if something unexpected happens.


2. Invest

Use your income to invest. There are already many people at this time who have made investments. Various types of investments are also available for people who are in their early adulthood and may not be able to generate their own income. The type of investment that is widely made is in the form of stocks or mutual funds. In addition to making a profit, knowledge about investing will also increase.


3. Purchase Only As Needed

Manage finances for something that is needed but not desirable. People who are in this time have a volatile soul and a feeling of wanting to have many things, and it is difficult to control their desires. The thing that must always be remembered is "Meet the needs first, after that only the desires". Because of the limited income, it is likely that not all things can be achieved.

Therefore, use money first for something that is a necessity. If it is still left, then it is used for something that becomes a desire. If you really want to buy something, saving is the best solution. However, it is still not allowed to spend savings in just one go.

 

4. Purchase High-Quality Products

Strive to choose something with the best quality and price. There are so many choices of similar products that it can be confusing. When you are experiencing this confusion, choose a product that is worth it. The point is to choose a product with good quality but a low price. Usually, young adults actually want to buy something from a well-known brand, even though there are other brands whose quality is still good but the price offered is much cheaper.


5. Don't Skimp on it.

Save as much as you can. There are many ways that can be done to make savings. Usually, this is done by a person who lives alone and is far from their parents. And many young adults do that, so they have to be better at managing finances.

One way to save money is, for example, by eating. Cooking food yourself can save expenses, and the quality of the food will also be guaranteed. If you don't have time to cook, buy food in a place intended for the lower middle class where the quality is still guaranteed. Although it does not look like it, expenses can be saved, and the money can be used for other needs.

 

6. Continue to Learn

Another thing that must be remembered is that in managing financial management, not everything will go according to what has been budgeted before. Budgeting is only a benchmark so that finances are better controlled. Even if it is not in accordance with the plan, of course, it is only slightly different.

Also, remember that it is normal to make a mistake. Mistakes can make a person better in the future. While we make mistakes, we can continue to learn to correct them so that our finances improve.