HomeSelf Help5 Financial Tips to Follow in Your 20s That Pay Off in the Future


5 Financial Tips to Follow in Your 20s That Pay Off in the Future — 4 Comments

  1. Thank you, Lizzie Howard, for this insightful article! These financial tips are incredibly valuable for young adults starting their journey towards financial independence. I appreciate your emphasis on the importance of planning for retirement from a young age. This proactive approach sets the stage for a financially secure and comfortable future. 

    I experienced job loss during the COVID-19 pandemic, which made me realize the crucial importance of having an emergency fund. It’s uncertain what lies ahead in the future, and having those funds in place truly saved me during a difficult time. In your opinion, what is a good recommended ratio for saving on your income?

    • Thank you, Miadinh, for sharing your thoughts and personal experience. I’m glad to hear that you found Lizzie Howard’s article insightful and valuable for young adults. Planning for retirement from a young age and having an emergency fund are indeed crucial aspects of financial well-being.

      Regarding your question about a recommended ratio for saving on your income, it’s important to note that personal financial circumstances can vary widely, so there is no one-size-fits-all answer. However, a commonly suggested guideline is the “50/30/20 rule.”

      According to this rule, you allocate 50% of your after-tax income towards essential expenses like rent, utilities, food, transportation, and other necessities. Around 30% of your income can be dedicated to discretionary spending, such as entertainment, dining out, hobbies, and non-essential purchases. The remaining 20% is then allocated to savings and debt repayment.

      This 20% savings portion includes contributions to your emergency fund, retirement accounts, and other savings goals. Building an emergency fund that covers 3-6 months’ worth of living expenses is generally recommended. Once you have an adequate emergency fund, you can focus more on long-term savings for retirement, such as contributing to a 401(k) or an individual retirement account (IRA).

      It’s worth noting that these percentages are not set in stone and can be adjusted based on your individual circumstances and financial goals. For example, if you have higher levels of debt, you may choose to allocate a larger portion of your income towards debt repayment.

      Ultimately, the most important thing is to develop a budget and savings plan that align with your financial goals, allow you to live within your means, and help you make progress towards achieving financial independence. It’s also a good idea to regularly review and adjust your budget as your circumstances change over time.

      I wish you the very best,

      John 😀
      Helping others make money online since 2001!

  2. I love it, Lizzie, you are very knowledgeable and thorough with what you deliver to your audience. I like how you recommend great income-earning tips to your audience. 

    I personally learned a lot just by reading one of Jon’s earlier posts, and especially this one: ”How to Earn Extra Money Working From Home?

    That post stuck with me because I am an 18-year-old who is about to go to university this September, and I already have a website going. 

    • Thank you, Mustafa, for your kind words and feedback! I appreciate your support, and I’m glad to hear that you find Lizzie’s financial tips valuable.

      It’s fantastic that you found one of my posts on ”How to Earn Extra Money Working From Home?” helpful as well. Working from home has become increasingly popular, and it presents numerous opportunities for individuals, especially students like yourself, to earn extra income while managing their studies.

      Having a website at such a young age is a commendable accomplishment. It opens up doors for various possibilities and can serve as a platform for you to showcase your skills and interests. Along with the income-earning tips mentioned earlier, here are a few more ideas that you might find useful:

      1. Create and sell digital products: If you have a talent for graphic design, writing, or creating digital art, you can develop digital products like e-books, templates, or digital artwork to sell on your website or through online marketplaces.

      2. Start a blog: Utilize your website to share your thoughts, expertise, and experiences through blog posts. As your blog gains readership, you can monetize it through advertising, sponsored content, or affiliate marketing.

      3. Offer virtual services: Consider providing virtual services such as virtual assistance, social media management, content creation, or website design. Many businesses and entrepreneurs are in need of these services and are willing to pay for quality work.

      4. Online courses or tutorials: If you have expertise in a particular subject or skill, you can create online courses or tutorials and sell them on your website. Platforms like Udemy and Fiverr can help you reach a broader audience.

      Remember to continue balancing your commitments and priorities, giving due attention to your studies while pursuing opportunities to earn money through your website. University is an exciting time for personal and academic growth, and your website can complement that journey by providing you with a platform to showcase your talents and build your online presence.

      I wish you all the best as you embark on your university journey and continue developing your website. I’m confident that with dedication and perseverance, you will achieve great things!

      John 😀
      Helping others make money online since 2001!

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