How to Manage Your Money in Your 20s

Maybe you’re just starting your career and wondering how to manage your money. Or perhaps you feel like it’s time to start investing and you’re looking for financial tips. Well, you’ve come to the right place. Master these six financial lessons now to become a money management pro.

Stick to a Monthly Budget

The first lesson in learning how to manage your money: You’ve got to stick to your monthly budget. Don’t have one yet? Create one asap. Having a budget is a key step toward curbing spending and saving money. By creating and sticking to a budget, you’ll help ensure that you can cover all the necessities — and make room for some extras. Learn how to create a personal budget and track your spending every month.

Choose Insurance That Will Protect You in an Emergency

Insurance policies can protect you and your bank account when things go wrong. There are many kinds of insurance to consider getting in your 20s, including home, auto and even life. Insurance can help provide protection from liability, damages and financial loss. Protecting yourself, your family and your assets against loss is one of the most important reasons for having the right kind and amount of coverage.

Maintain a Healthy Credit Score

When plotting your personal financial strategy, remember that you’ll have to manage your credit score, too. Your credit history can determine what kind of loans you qualify for, as well as the interest rate you’ll pay on them. Building a solid credit history can have a big impact on your future financial wellbeing and set you up for money management success down the road.

Have a Financial Backup Plan

A financial safety net is a crucial part of any money management plan. Without one, you could find yourself one unfortunate event away from financial disaster. A solid backup strategy might include a savings account with several months’ worth of living expenses, adequate insurance and a secondary or alternate source of income.

Start Saving for Tomorrow Today

The sooner you begin saving, the more time your money has to grow. Finding ways to save money and earn interest now will help you get on track toward managing your money in the long term. With compound interest, a few dollars today could turn into big money over the course of a lifetime. Make a plan to start saving for everything from your kids’ higher education to your own retirement.

Map Out Your Financial Goals

Don’t just dream about being better at money management. Put an actionable plan in place. Financial goals require regular consideration and effort over a long period of time. Having a workable financial strategy can help you make your goals a reality.

We Can Help You Manage Your Money

Take the next step in preparing for your financial future by contacting a Farm Bureau agent today. An experienced agent can help you find the right insurance coverage that will protect your bank account when the unexpected happens.