Twenties is the right time to practice good financial habits. Because, at this age every one should prioritize their finance in order to make a smooth financial life. If you’ve a habit of spending more than what you earn, it would be really difficult for you to fight with debt. The major reason that people incur debt is because they don’t know how to live within their means. If you have a couple of credit cards in your hand and indulge into heavy shopping without thinking about future consequences, then you’re in trouble. Once you fall in debt, you’ll realize how difficult it is to get rid of it. It is better that you start building new habits to become a money saver.   My article can give you some suggestions.

Financial habits you can build in your 20s

Here are the 11 habits that can help you stay financially independent not only in your 20s but throughout your life.

1. Set up a goal

You should have some reasons to save money. Think what do you want? A home, financial independence, getting rid of your student loan debt . Take your first step and achieve one by one. Your desire will inspire you to save money and thus you can build a good money habits as well.

2. Give yourself a deadline

Always fix a date by which you can meet your goal. This will give you a push to save money. Think about your goal once a day. Thus, you can avoid big expenses and stay within your budget.

3. Create budget and modify accordingly

Budgeting helps you spend less than what you earn. This helps you to save more as well. As you expend less and save more, you incur less debts and even if you do incur some, you’ll have the money to pay those off. You’ll have to make a list of your income and your expenditures in order to create a budget . A budgeting calculator can help you prepare your budget. If required, you’ll have to analyze and also modify the budget from time to time as per the changes in your income and your expenditures.

4. List items of your requirement

At the beginning of every week you should list the names of items you would require throughout the week. This list should only include items of necessity and not luxury. You should then visit the mall once a week to buy things you’ve written down in that list. You should remember to carry the list with whenever you go for shopping.

5. Use cash for shopping as much possible

One of the major reasons why young people get into debts is credit cards. When you’ve a credit card in your hand, you can barely resist the temptation of buying anything that catches your fancy without thinking whether or not you at all need it. Instead if you use cash for purchasing,   you would not be able to spend much even if you want. This is because you cannot carry too much cash always.

6. Stay within your means

You’ll have to change your style of expenditure in order to save money. That is, you’ll have to become more disciplined and lower your expenditures as much as possible. In addition, lower the usage of credit cards as these incur higher debts.

7. Make a habit of using coupons

Coupons are a great way of saving money. You can collect coupons from newspapers, magazines and even some websites which allow you to download free coupons. Thus, you can use these coupons to buy items on discount. Talk to your parents or elderly persons to get some information about couponing.

8. Make your own food always

Eating out, ordering food or buying lunch can make your pocket considerably lighter. It is better you skip eating out except for those very rare occasions when you want to go for dinner in a restaurant to celebrate anything. You should also carry brown paper bag to office so that you don’t need to buy food.

9. Set up an automatic savings account

Set up an automatic savings account to avoid spending money on something else. You can ask your employer to directly deposit a certain amount of money from your salary into the savings account. Pay yourself before paying others. Start small with just 1%-2% of your salary. Once it becomes a habit, you’ll see how fast your money grows.

10. Fight with debt

You should work on your financial obligations as soon as possible. The sooner you pay off your debts, the quicker you can start saving money. Try to pay the high interest debts first. Try to fix your credit card and student loan debts now.

11. Give priority to your career

Take your job seriously because your profession will give you a smooth financial life at the age of 30. A good job is always a steady source of income. Work hard and acquire advanced skills in order to stay financially secure in the long run.

Bottom lines

Try to learn more about banking, investing, handling finances and so on. Read journals and financial magazines. Visit good personal finance websites and follow financial market on TV channels. These all are good habits you can build in your 20s. Thus, you can discover your own ways to deal with money as well.