Riding the financial rollercoaster of life in your 20s

Is your musical taste or dress sense the same as it was 10 years ago? Just as your personal style changes, so should your financial style. Help is at hand with these key financial facts for your 20s, the first article in milestone series.

Happy 21st!

Life goes through so many changes – often in the blink of an eye. Investing, planning and setting goals are far from your mind but it’s never too early to start thinking about money issues.

No matter how much you’ve got, establishing a budget, avoiding debt and learning to be a saver is very important.

First car, job or degree

It’s only natural to want to enjoy the new-found financial freedom that comes from getting your first job – and you should – but try to put a small amount away in a savings account for an emergency, or something you may want in the future.

Your grandparents’ generations were savers and it was common for them put away 10 per cent of their income. While you might not follow their fashion or music style, this financial habit is one worth adopting.

Moving on up and moving on out

You’ve graduated, have a solid career path and an attractive salary and maybe even moved out of home. You may be tempted to think that now is not the time to live it up.

While it is nice to have a new car or go on holiday overseas every year, letting a decade pass with nothing financially to show for it could have significant financial ramifications in later years.

Reward yourself for your hard work, but in moderation. Perhaps consider holidaying in a less privileged country where your money stretches further and you get the money can’t buy experience of learning about new cultures.

Almost 30?

Now is a great time to build a solid foundation by being careful about debt and controlling the credit cards.

What are your medium and longer term goals? You might be starting to think about how to buy your first home and the financial steps you’ll need to take to make this a reality.

In our next instalment we’ll look at tips for people in their 30s when marriage might be on the cards and kids could be on the horizon.

Any advice given is general only and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.