Your twenties are an exciting time full of new opportunities, experiences, and challenges. To help you navigate this exciting (and sometimes daunting) period in your life, we’ve put together a list of four helpful tools that will help you make the most of your money.
As a woman in your twenties, it’s crucial to establish good financial habits early on to set yourself up for long-term success. Whether you’re looking to save money, minimize debt, or plan for the future, these 4 simple tools will provide you with the tips and insights you need to achieve your financial goals. Let’s get started!
4 Financial Tools For Your 20s
1. Set Up a Monthly Budget
This is a game-changer. Planning ahead will give you a clear idea of where your money is going and help you cut back on overspending. Your budget can be as simple as pen and paper or a spreadsheet. There are also several options for apps, like EveryDollar, that can make budgeting easy.
2. Open a Roth IRA
A Roth IRA is just a fancy name for an individual retirement account that will help you save for the future. Even putting in just a small amount of money each month can add up over time.
“You can withdraw your after-tax contributions from your Roth IRA at any age tax-and penalty-free. If you withdraw any earnings you’ve made on your investments before age 59 and a half, you will incur a 10% early withdrawal penalty (though it won’t be taxed like a traditional IRA). Some exceptions to this early withdrawal penalty on Roth IRAs include first-time home purchases, college expenses and birth or adoption expenses.”
According to the MoneyGuys Wealth Multiplier, if you invest at age 20, that money will be worth nearly double the value than if you wait till 25 to invest the same amount!
3. Cut Monthly Subscriptions
Most of us have more subscriptions than we realize and they can add up quickly. Consider canceling some of the streaming services you don’t use frequently, like Disney+, Netflix, Hulu, or Amazon Prime, and stick to your favorite. Your bank account will seriously thank you!
4. Get Creative with Ways to Save
Once you’ve established a budget, you can see ways you are habitually spending money. Set a goal to cut back on small things that add up quickly. For example, instead of buying coffee or lunch, make coffee at home and pack your lunch for work or school. You can also take advantage of fun, free events in the Triad. Libraries are often hosting free activities, and spring’s warm weather is a perfect time to check out parks and trails in your community.
Moms, Kids Eat Free nights and consignment sales are game-changers. Also, be sure to take advantage of free resources like WIC, which can help you provide nutritious groceries for yourself and your family.
You’ve Got This
If you think you might be pregnant, or if you are already a mom, we’re here for you! Our services are totally free – regardless of if you have health insurance. At your appointment, we’ll help you get connected with resources in the Triad that can help you and your family, like Medicaid for Pregnant Women and Greensboro Urban Ministry. Our trained peer advocates can work with you to set practical financial goals for your future. You can do this, and we are here to help. Click here to make a free appointment today.
1. Gravier, E. (2023, May 1). These are the best IRAs for all types of investors, from beginners to the more experienced. CNBC. https://www.cnbc.com/select/best-ira-accounts/