Post Revised September 17, 2021
Being in your young twenties can be daunting; take it from me. While these are the best times in your life: starting your career, living on your own (or maybe with a roommate), embracing your independence and just trying to figure out who you are – it’s almost dizzying to think about what investments you should focus on and what the best money advice for women in their 20s are.
According to statistics, only 30% of Americans have a long-term financial plan. So why not try to become part of that number?
Yes. Invest. Ideally, this is where you’ll think all your big thoughts and build whatever future you envision. It all starts with the right tools.
It’s never too early to save for the future, but that doesn’t mean it has to be all pricey.
Here are some money tips from women in their 20s:
Create Multiple Streams of Income
This is the first money advice for women if they want to learn how to be more financially independent. In a world of growing insecurity, it is more important than ever to create multiple streams of income.
The best way for individuals and families alike to not rely on one source alone is when they can have several backups just in case something happens or gets cut off from their original plan.
Create different strategies so that there isn’t any worry about what might happen next; this gives peace-of-mind knowing a stronger financial security has been achieved by diversifying your resources!
Here are some ways you can diversify your income:
Start a Side Hustle
A lot has changed in just one year, from a lack of stable work opportunities to workers competing with robots that do our jobs for us. One way you can create multiple streams of income is by starting a side hustle where you don’t feel obligated to do it at a specific time and you can choose how much/little you want to work on it.
Some great ways that you can start a side hustle while you’re in your 20s is.
1. Copyediting and Ghostwriting
Copyediting and Ghostwriting is a great way to earn some extra cash on the side. You can work from home, set your own hours and get paid for editing others’ writing in creative ways that make them more marketable!
There’s a tremendous demand for this industry at the moment, so having a good portfolio and ready to work is key for companies/small business owners looking to hire you.
2. Social Media Marketing
Social media is a powerful tool for any company, but it’s important to have the know-how of how and when best to use this medium. It can be a tedious task as a business owner to deal with, so most of them hire out people who can do this for them. This makes it another great side hustle for people in their 20s that you can do.
3. Start an Etsy Shop
If you’re not an expert designer, start your own Etsy shop and get it up on the internet. You can make money from home using this platform that is designed specifically for people like us!
You don’t need any technical skills or experience, just passion and creative ideas!
4. Food Delivery
It’s undeniable that food delivery has become an easy and effective way to earn money. When you think about it, how often have we ordered takeout from our favorite restaurants?
Who wants the hassle of cooking when they can just get their meal delivered right at home with a few clicks on their phone or laptop! It makes your life so much easier.
Start Looking to save for retirement
The best way to follow money advice for women is to start saving for retirement is early. By starting with your investments, you can get a head start on saving and compound interest will work its magic!
A good rule of thumb says that if invested money was left alone after 20 years then it would grow at least doubling what everything earned during those time periods were when investing just once per year or monthly so putting aside even 10% each month could have big payoffs in later life well into old age.
Your future self will thank you. So start looking for ways you can save for retirement now.
According to Merrill Bank of America, Here are some tips on boosting your retirement savings account.
1) Contribute to your 401(k)
The 401 (k) is a great place to save for retirement and it’s not too late yet, but you need more money in there! If your company offers them – contribute as soon as possible.
3) Open an IRA
You can open an IRA with most banks, brokers and financial advisors.
IRAs are flexible funds that grow tax-deferred until you decide to take them out of the market; then all earnings will be taxed at ordinary rates for that year or sometimes longer if held over a certain amount of time has passed since inception (subjectively defined).
4) Automate your savings
Saving for the future, especially when you don’t know how much is enough or what will happen in your lifetime, could be a daunting task. Attempting to automate your savings is big when you’re looking to save for retirement.
Even better, there’re apps nowadays that can help you do this automatically.
The best apps to help you save money are those that can measure and reward your spending habits. With these, it is easy for someone who wants better financial decisions in their life because each time they spend on an app like Mint or YNAB (both from iOS), a percentage goes into a savings account automatically with no transaction fee.
5) Set a goal
Setting a goal with how much you would like to keep in retirement is a great way to plan towards retirement and can be adjusted as you grow older and your income grows.
Little Debt as Possible
“New Experian data finds consumers in their 20s and 30s have up to $27251 in credit card, auto loans and student loan debt”. Debt can be hazardous to your health and happiness, so it pays off in the long run. It’s important to be aware of how much debt you have and don’t let the amount get out of control. #1 Money Advice for Women in their 20s, DO NOT SPEND MONEY YOU DON’T HAVE.
A lot people will take on credit card applications for a quick purchase without thinking about their future responsibilities with these high-interest rates usually hitting them pretty quickly in this situation because they are not educated or as knowledgeable when making an informed decision based on financial information available, but there needs to be more openness from all parties involved so everyone may learn what could happen if things go wrong financially.
The thing that will save us from ourselves? Being smarter about what we spend our money on! Sometimes it’s easy to overlook what is important versus the luxuries, what your needs are vs your wants, but once you figure it out, it will be one important step towards financial independence.
This means do not drown yourself in student loans if you don’t have to (start a community college first!), do not buy that expensive car that you don’t need and do not buy an excessive amount of clothes that you won’t wear.
Budgeting
The importance of budgeting cannot be undermined. With a clear understanding about where your money goes, you will make better personal and financial decisions in future that are likely to benefit both yourself and others around us too!
In order for one’s life (or business) to work together smoothly without them getting overwhelmed by debt, they should always have spending limits determined beforehand plus stick with those boundaries even if times get tough.
The key here is planning – figuring out how much revenue can realistically be brought into account each month so there won’t need extra funding because of unforeseen expenses unexpectedly appearing later down the line. One way to budget is with envelopes. All you need are different sizes and colors – which will help keep your finances organized in an easy-to-follow format!
A great technique for staying on top of financial matters, this simple idea can be done at home or work so that it doesn’t interfere with other tasks like paying bills online (or not). If you’re looking for more modern ways to track your expenses, consider tracking everything through an excel spreadsheet.
It will shock you to see how much money comes out on things you don’t need when you’re more mindful about how much you’re spending.
You Are The Priority
A crucial money advice for women in their twenties that they need to understand THEY are an investment. You can’t get anywhere in life if you don’t invest in yourself. It’s common knowledge that self-care and maintenance are essential for personal growth, but the best way to show your gratitude towards who made this possible is by taking care of their own needs first before those around them or even themselves!
1. Take yourself on a date
Take a break from your hectic schedule for one night and go on an emotional journey. Breathe in life, exhale all the stress away while sipping wine at sunset with yourself. Get your nails done, buy yourself a cute outfit and just enjoy your own company.
2. Go to the Gym
Exercise will give people a healthy release from stress so they can better manage their emotions on days when things don’t go as planned or work well enough at home with family members who may not always agree about anything. You deserve to live your healthiest life, especially when you’re in your 20s! Making time out of your day to invest in your body is crucial not only for your physical health but mental one as well.
3. Take time out of your day to work on your goals
Spend time working on your goals every day. A goal is not a permanent achievement if it’s unattended, so commit yourself fully and work hard! This is the time in your life where you should take the most risks. Make sure you’re doing what makes you happy and not what others are telling you should be doing. Know your worth, always.
Bottom Line
You’re in the prime of your life. Don’t waste it!
The importance of investing wisely during this 20-year period cannot be undermined. Therefore, giving money advice for women in their 20s is crucial for success in their future.
There are many benefits, including increased earning power later on a down payment for homes or cars because you have more money put away than usual at a young age.
On top of being independent and being able to take care of things on your own if needed. What are some ways you’re becoming more financially literate? Write for us!
