Figuring out how to manage your money in your 20s is one of the most important lessons you'll learn when you're a young adult. Whether you are on living your own for the first time or saving money by staying with your parents, there are a few steps you can take to ensure you are on the path toward financial security. Keep reading to learn how to take control of your finances.
These five easy steps will help you manage your money now and set up savings for the future.
1. Create a budget and keep track of your expenses.
Many financial experts recommend the 50/20/30 plan when you create a budget. Divide your income into three categories:
Most importantly, stick to your budget each month.
2. Start saving for retirement.
By the time you are in your 30s, you should have saved the equivalent of your annual income. There are several ways to reach this goal:
3. Pay off student debt.
The sooner that you repay your student debt, the quicker you'll improve your credit score and free up cash for other priorities.
4. Open a savings account for emergency funds.
Arrange for automatic transfers from your checking account to your savings account. Eventually you will want to have about six months' worth of expenses in a savings account that you can access in the event of an emergency.
5. Get insurance.
Even though you are young and healthy, it is still important for you to get insurance coverage to protect yourself and your possessions.
For more money management tips in your 20s, Synchrony Bank is here to help. We offer:
To learn how to make the most of your money in your 20s, call Synchrony Bank at 1-844-345-5789 or open your online savings account today.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of .
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.