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Financial Success in Your 20s

A few things to consider early in your career. 

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When you think of financial success, what comes to mind? For some folks, that conjures images of big homes, fancy cars, and a lavish lifestyle. For others, it means simply having enough money to cover all the bills and still have a little fun.

Over the next few weeks, I want to talk about what financial success might look like in your 20s, 30s, 40s and 50s.

Let’s start with your 20s. One of the best things you can do during this decade is find what you love to do professionally, and start building a career you enjoy and a path for progression and promotion. I know for many recent grads, just having a job feels like success, but after a year or two, ask yourself if you’re truly on the career path you want to pursue long-term. If you are, fantastic! If not, now is the time to do some soul-searching and make a change while you’re still young. Whether that means pursuing an advanced degree or finding someone to mentor you in a new field, this is the time to explore your options and find your professional passion.

Next, as you build your career, it’s important to get away from paycheck-to-paycheck living. Setting a budget, controlling debt, and learning to say no to yourself are all important aspects of financial success in your 20s. It’s impossible to start building wealth if you’re spending every dime that comes your way.

Lastly, no matter what job you’re in, start building up your savings muscle. At this age, I’m not going to tell you to put away 20 percent and max out every account you possibly can. I strive to be realistic. But make sure you’re putting enough into your company 401(k) to get the full match, and start working on an emergency fund. The more automatic saving becomes, the better you’ll be at it when your income expands and you have more money available to sock away for the future.

If you’re a young professional with questions about saving, investing, budgeting, or any other financial topic, our team is here to help. First meetings are always complimentary, so give us a call today.

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