Knowledge, Wealth Creation

10 Smart Steps to Become Financially Stable in Your 20’s

Habits are decided by the company of our friends, the family we brought up, and the surrounding that we are spending the most hours of the day. We hear this for ages, and to some extent, it is true. But, my friends remember nothing is possible without discipline, sacrifice, perseverance, and the right approach. It has been well said that to understand the character of a person, give him some money. To speak the truth about being stable financially in the 20s is possible to everyone who has a family background with enough earnings as well as himself making enough. The first rule of being stable financially in the ’20s is to learn to save some.

10 Things to Become Financially Stable in Your 20s

To become financially stable definitely doesn’t mean that you have a lot of money to set fire. It simply means that you have no debts or loans to repay, enough money to save and spend after paying off your living expenses. It may not sound much, however, being financially stable is what most people only desire. We are not saying that it is a task that is impossible to achieve. It is because a perfect balance of strategy and implementation can help any person become financially stable. So, here

1. Make a Budget

Prepare a monthly budget. If you build a habit of creating a monthly budget, it will help you keep a watch on all of your expenditures. Though it will take time, you will slowly learn to manage your necessities in a small amount of money. Try to balance your budget every month. It is always better that your percentage of saving increases and not that of expenditure. It helps you to keep track of how you have to pay if you have borrowed? To keep track of your debit and credit, you do not need to be professional.

2. Choose an Affordable Lifestyle

Learn to value money irrespective of your financial standards. Adopting an affordable lifestyle that is free from unnecessary expenses like those done just to appear “cool” in your gang or to flaunt expensive things in front of your friends. In addition to this, choosing an affordable lifestyle includes keeping a watch on the prices of commodities at different places which are selling them. Learn to check out different platforms before buying something from one shop. This is especially applicable on online shopping websites.

3. Save More and Don’t Stop

Creating more and more savings is the key to becoming financially stable early in life. However, it doesn’t mean that you begin compromising on your daily needs. It only means that you should save money whenever and wherever possible.

4. Repay Your Debts

Debts, especially some specific kind of loans, take away a lot of your money. The interest rates are very high. So, it is always better to repay your debts as soon as possible. For example, when you get bonuses, you must transfer that bonus to your loan accounts.

5. Learn About Finances

Pick up any good book on finance. Read it. Study it. Make notes that will help you in your further journey. Study your money sources and plan your expenditure. You can also refer to financial blogs to seek financial advice and develop a working strategy to tackle your finances.

6. Inculcate Good Money Habits

Inculcating good money habits is very necessary to prevent your hard-earned money from going to waste on meaningless things. Sometimes, we keep spending money on things that don’t even have any use in real life. Similarly, impulse shopping is a very bad money habit that should be kept in check at all times.

7. Set Short-term and Long-term Goals

Set financial goals. It plays an essential role in planning higher studies or thinking about being an entrepreneur or nurturing your hobbies by upgrading skills. Setting short-term and long-term goals separately allows you to take informed savings and investment decisions. Moreover, knowing how much money you will need to accomplish your short-term and long-term goals helps you in planning a great financial budget.

8. Invest in Yourself

Upgrade your skills as per the market requirement. Develop a skill that is high in demand and will open uncountable avenues to earn money and grow as an individual. In addition to investing money in upskilling, it is good to dedicate some amount of money towards building a healthy lifestyle with good food and a fit body. This largely helps in making an individual financially stable as no one wants to spend money on doctors, medicines, and dealing with common medical problems.

9. Develop a Great Credit Score

A credit score is very important in finances. It highlights the creditworthiness of a person. It is basically a number that represents the loan repayments and credit history of a person’s account. A good credit score increases your chances of getting a loan from a lender and also improves your mortgage security. A high credit score in the range of 850 indicates that the consumer has a great credit history.

10. Create an Emergency Fund

Creating an emergency fund is extremely important to keep your savings from going away due to any unforeseen reasons or circumstances. You surely do not make savings to someday pay your hospital bills or tackle any other emergency that is certainly out of your control. Therefore, in such situations, keeping an emergency fund and maintaining it becomes very important so that you can sustain your life without relying on someone else or having to break your own savings deposits.


Rome was not built in a day! So does, the habit of savings that can not be achieved in a day or week. It will take a few weeks. If you strictly decide to change your practice and consistently work towards it, sooner, you will be financially stable. Let’s go ahead with these few simple tips. Remember the finances you make in your 20s are going to decide years to come and help you achieve financial freedom.