Managing Finances in Your 20s

The early twenties are filled with uncertainty and anxiety (or maybe it’s just me?). You’ve graduated from high school, and are most likely living alone, away from your parents’ constant supervision, for the first time in your life. There are various hurdles at this point in your life because you are just getting started. Comrade life is about to come at you fast. But worry not, VibeYetu is here with some personal insights on managing finances in your 20s.

Budgeting.
Aligning your spending with what you value most is the greatest approach to making sure you’re getting the most out of the money you have. To find out where your money is going, you might start by just keeping track of your expenditures. After that, you can create a budget by deciding how you want to allocate your money going forward.
A budget helps you know where your money is going and how you’re using it. You can start with the 50/30/20 rule: Allocate 50% of your allowance to needs (like rent and groceries), 30% to wants (concerts, shoes, eating out), and 20% to savings.

Savings.
Ever heard the saying, “A journey of a thousand miles begins with a single step”? The same goes for saving money. You don’t need to stash away half your money right off the bat. You can start by stashing away as little as 50 Kenyan shillings in your account. There are saving apps like Chumz that are available and easy to use.

Mindful Spending.
This means getting the most value for your money.
You become a savvy spender by:
Prioritizing needs above wants. Do you really need that additional pair of sneakers?
Look for deals. Shop during sales, use coupons and check prices online.
Avoid impulsive buying: If you see anything you like, wait at least 24 hours before purchasing. Chances are that the impulse will go.

Side hustles: Your twenties are ideal for looking for side hustles that might provide extra income and possibly ignite a new passion. These may include ;
Freelance jobs: Writers, graphic designers, and social media managers can use their abilities to supplement their income.
Selling online: De-clutter your house and sell goods you no longer require online.
Use your side hustle to boost your savings.
Invest in yourself not only your money: You are your most valuable asset. To set yourself up for long-term success, invest in networking, information, education, and skills while you are in your twenties.

Part of your task now as a person in your early 20s is to study as much as you can and put it all to use. This increases your self-efficacy, or confidence in how capable you are to meet future obstacles. And the more obstacles you face now, whether financial or otherwise, the better prepared you will be to face them in the future.