6 Financial Habits to Start in Your 20s

Your 20s will definitely be the time where you need to cultivate good habits so that you can mold your character for the better.

This will be the time to create habits that will help you make the most out of your money and also earning a lot of it in the future.

So, if you want to learn some financial habits that you need to cultivate now, read further so that you will be educated.

Young woman with good financial habits

1. Familiarize Yourself with Credit

The first habit that you want to cultivate is to familiarize yourself with Credit. All of us will have credit and you will be given a score that will show potential lenders your ability to repay a debt.

This score will be affected by a number of things such as how timely you make your payments, how often you borrow money, among other things.

Now, the reason why it is important that you familiarize yourself with credit is that your decisions concerning money will affect it somewhat.

Making timely payments, for example, will increase your credit score. Conversely, if you consistently pay late, your score will dip.

Educate yourself about this so that you will make smarter financial decisions later on.

2. Take on Plenty of Jobs

When it comes to being an adult, your 20s will be the time where you will have the most energy. This is also a great time to nurture a new habit.

Because you have a lot of energy, it will be a perfect time for you to take on more than one job. Yes, you’re probably enjoying your day job because it has a good starting salary, but why stop there?

After your shift, you might have some energy left to do another job or even 2! My point is, since you’re still going to be pretty active after you finish your main work, take on other jobs to increase your cash.

Aside from the obvious reason that more jobs equate to more money, the idea of having more than one job instills in your mind that hard work pays off and that you will know how challenging it can be to earn plenty of money (at least, in your 20s).

Retirement saving and pension planning

3. Start Saving for Your Retirement

Wait, what? You’re still a young adult and you should start saving for your retirement? This might not make sense to you now, but saving for your future, especially for your retirement, will make you financially stable once the time comes to hang your coat.

Get a 401k or an IRA account and save a little portion of your monthly salary towards it. Typically, you want to save at least 10% of your total salary every month (the higher, the better). If there is something that requires funding, a cash advance will help alleviate the situation instead of withdrawing funds from your retirement account.

4. Don’t Forget Your Emergency Fund

Emergencies can happen, most especially in times that you do not expect. So, it is better to cultivate the habit of saving up for your emergency fund.

Medical expenses can get pretty expensive, so saving money as early as now will give you enough reserves should the time come that you need to spend it.

5. Learn How to Budget

Since you’re still young, thinking of where your money is spent is probably not your top-most priority. But, if you want to become a responsible adult, you need to learn how to budget.

Budgeting allows you to pinpoint exactly where your money should be headed. Aside from that, having a solid budget will ensure that you do not waste your cash on things that you probably do not need.

6. Prioritize Debt Repayment

When you’ve accrued some debt, may it be from student loans, personal loans, or others, you need to learn how to prioritize repaying them.

As mentioned above, your credit score will be affected depending on a number of factors and delayed payments will have a negative impact on it.

Repaying your debts in full will allow you to think of your future more instead of constantly thinking of that debt that you still have.


Your 20s is a time to cultivate positive financial habits so that you will not run into problems in the future.

Taking on more jobs, learning how to budget, saving for your retirement and emergency fund, and prioritizing debt repayment are great habits that you should instill in yourself so that you will have a better tomorrow.