10 Personal Finance Tips For 20-Somethings

Struggling with finance is what a lot of people do. This could have easily been avoided, but a lot of people have little or no knowledge of how to handle their finance. I wouldn’t claim to be slaying when it comes to financing. But, I am tirelessly working to get a better grip on my finance.

“Stay woke!!! Before, you turn yourself to a distress call centre personnel; evaluate the relationship with whoever the parasite is.”

I also know that as someone in his 20s, there can’t be a better time to take my finance seriously. Not if I desire to be financially independent some day. Though I take my finance seriously, I find myself relapsing and going back to square zero, these tips from my research would help anyone get hold of their finance and have better lives tomorrow.

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  1. Document Your Finance: You see, the need to properly document your finances can’t be overemphasised. Get a book, use an app or a software. Whatsoever, just have a record of your monthly income and expenditures. From experience, I can tell you this works. After reading Smart Money Woman last year, I found myself writing down my income every month and tracking my spending. I have skipped some months, yeah. But, the months I didn’t skip had me feeling better about my finance, spending within my budget and even having more money to splurge or throw into my stock investment.
  2. Set Financial Goals: I must confess that this has been a bit challenging for me. But, having financial goals work. Just like your life goals, you should have short-term, mid-term and long-term financial goals. First off, meeting the short-term goals helps to build your confidence and gives you reasons to take your finance seriously and thereby increasing your chances of meeting the mid-term and long-term goals.
  3. Make Budgets: I would suggest that if you get money weekly, then your budget should be weekly. And if your money comes monthly, make monthly budgets. In making your budgets, pay more attention to the basic needs first. Talk about rents (that’s if you pay that); feeding; transportation to and from work. It would be stupid to invest in the best of makeup or the trendiest piece of clothing when you can’t even afford a decent and healthy meal. Never ever spend your entire income. This takes us to the next tip.
  4. Save: I would be lying if I claim that there are months I didn’t spend my entire budget. But, those are the months I didn’t write a budget. While writing my budget, I rule out things that I know I can do without just so I can save up something. No matter how little. I cut down on the amount I spend on data or call card and cancel trips to the cinema and other recreational activities just to save.
  5. Invest: I don’t see the essence of the saving if it would just end in my account. I would definitely spend the money. So, I throw the savings into my investment in stock. I use Meristem Investment and there are a lot of other investment banks open to Nigerians. Even, when there isn’t an investment bank in your state of residence, you can communicate with these banks via email. Meristem is in Lagos and I was in Delta when I started investing with them. Just as Arese Ugwu suggested ask as many questions as possible. What are you investing in? How much is the interest rate? For how long? Do you pay charges for closing down the investment? Ask whatever questions come to your mind, don’t bother about sounding foolish, you are not pro. It’s your money and you have all the rights to it.
  6. Avoid Loans and Credits: Run from loans and credits as much as you can. Before you take the loan, be sure it’s that important and that you have plans to pay up. Follow through the plans, especially for loans with high interests.
  7. Invest In Your Self: No knowledge is a waste. Reading can be boring, I agree. But, you can barely get knowledge when you don’t read. If you can’t read books, read blogs, listen to podcasts and watch YouTube videos. Learn new skills that can help you get better-paying jobs, ask for a raise or start out on a side hustle and possibly go entrepreneurial. Get knowledge about your finance. Reading Smart Money Woman wasn’t the most interesting thing I could do. Taking time to research this topic isn’t as fun as you may think. Having to talk to an older client of mine(I was her VA) wasn’t easy. But, the investment in my self is what I need to get the future I want.
  8. Discuss Your Finance: Guy, the days when men don’t talk about their income is gone. That was before your parents birth. Aunty, your man mustn’t be the breadwinner. Life can be a pot of badly cooked beans sometimes. You have to get a hold of your finance. Don’t marry someone who can’t talk about their finances with you. Don’t have friends with whom you can’t discuss your finances with and expect a decent advice from. When I got Smart Money Woman, I made my friends read the book too. I discussed the content with some. Others save better than I do and they inspire me to keep at it. How about your older relatives and parents? These people are mobile experiences and you can learn a whole lot from them. My mother won’t let me be about the need to invest in agriculture and real estate and I have my eyes on those.
  9. People Would Spend Your Money If You Let Them: Before you do that asoebi, think am. You didn’t come to this life to slay at people’s wedding and explore the wedding guest hashtag. Talk about people who unveil cakes on birthday parties. I was “shook” the first day I witnessed it at an acquaintance’s birthday party. Everyone is giving 2k, 5k and you have to give to unveil birthday cake that isn’t your own. Those friends that only call when they run out of data and needs you to help them with 300 NGN airtime as they already have 700 NGN. Nigeria and the new begging strategies. Stay woke!!! Before, you turn yourself to a distress call centre personnel; evaluate the relationship with whoever the parasite is. Don’t come and go and die, they didn’t tie you to someone’s umbilical cord.
  10. Be Content: You are at the stage of your life where you should be broke and trying to make ends meet and figuring your finances. You are not alone. We are in this together. Just double tap the fine pictures on IG and don’t feel like you have it bad. You don’t know how long he or she saved to be able to splurge in Spar or Shoprite. You see that iPhone was a project and it took him or her making a lot of sacrifices you can’t make to get. Be happy with what you have and celebrate yourself. The fact that you even read to this part of the post should make you feel better for already making plans to take care of your finances.

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Did I miss something that could be helpful for us 20-somethings in managing our finances? Share your thoughts in the comments section. Daalụ.

Victor Ugoo Njoku

I am human. I love life. I learn as much as I can every day and share the knowledge on my blog.

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