Your 20’s are exciting- and at times, a little overwhelming. You’re likely going through huge life changes: graduating college, living on your own, landing your first job, and maybe repaying student loans for the first time.
All of these responsibilities come with one question: How do I actually manage my money?
If you’re feeling a little lost on where to start, you’re not alone. Building a strong financial foundation for yourself doesn’t have to be as complicated as it seems- it just takes a few intentional moves and consistency.
Here are 6 financial hacks I wish I knew in my 20s:
1. Create a Physical Budget Using the 50/30/20 Method
There’s something significant about writing things down that makes your money feel real and within your control. The 50/30/20 rule is a simple and tried-and-true:
- 50% of your income goes to needs (rent, groceries, bills)
- 30% goes to wants (eating out, travel, entertainment)
- 20% goes to savings and debt repayment
Throughout the month, you can set aside one day out of the week to log new expenses, and see how well you are doing with staying on budget. You may even decide you don’t need to order that take out after all, if it means you will have to go above your food budget for the month.
By physically tracking this each month (pen and paper or a digital tracker), you’ll quickly spot where your money’s going and where you can make adjustments to reach your financial goals faster.
2. Open a High Yield Savings Account
With an average annual percentage yield (APY) of 0.41%, your traditional savings account is not doing you any favors. High-yield savings accounts (HYSAs) offer substantially higher interest rates that can exceed 4%, meaning your money can grow quietly in the background.
It’s the perfect place to stash your emergency fund or save for big goals. The best part is that most don’t have monthly fees, and it only takes a few minutes to open one online.
3. Open a Roth IRA- Yes, Even if Retirement Feels Far Away
I completely get it- for most, the average retirement age is decades away from where you are right now. Your 20s are actually the perfect time to start saving for it (thanks to compound interest).
A Roth IRA lets you invest money that grows tax-free, and withdrawals in retirement are tax-free too. Even small monthly contributions (like $50) makes a huge difference in the long run. Your future self will thank you.
4. Automate your Bill Payments
Life gets busy. Missing due dates leads to credit damage, late fees, and stress. Set up automatic payments for recurring expenses like your rent, utilities, and loans.
It’s one less thing on your mental checklist, and it keeps your financial reputation solid. Just make sure your account has enough funds each month to avoid overdraft fees.
5. Use the Snowball Method to Pay Down Debt
Debt can feel like a dark cloud — but there’s a strategy that works. The snowball method involves paying off your smallest debt first (while making minimum payments on the rest), then rolling that amount into tackling the next smallest.
It builds momentum and motivation. You’ll start seeing progress fast, and that’s what keeps you going until you’re debt-free.
6. Learn, Learn, Learn!
One of the strongest money tips I can give is to learn as much as you can about personal finance. There are so many books that cater to making this financial stage of life a little less challenging for young adults.
One book that completely changed how I handle my finances is I Will Teach You To Be Rich by Ramit Sethi. This book is the perfect way to learn about everything that will create a strong financial foundation (with a but of humor). Click here to get a copy!
Start Building Your Financial Confidence Now!
Your 20s are for learning, growing, and setting yourself up for the life you want. Money is a huge part of that puzzle. Start small, stay consistent, and don’t be afraid to ask questions along the way.