Personal Finance Goals For Your 20s -

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I am getting closer to the end of a decade known as my 20s. The last ten years have gone by incredibly fast. As I reflect back I am amazed at what I have already accomplished. In terms of my personal finances, I could have achieved more if I had concrete financial goals. Nonetheless, we are moving forward into the next decade of our lives with more personal finance goals and wisdom of our past mistakes.

Today, we want to take some time to go over 5 simple personal finance goals to start in your 20s. Again, the sooner you start the faster you will achieve your personal finance goals!

Develop A Marketable Skill

At first-glance, developing a marketable skill may not seem like it would correlate with personal finances. However, developing a marketable skill may take on the actions of fine-tuning your talents, gaining work experience in a specific skill set or increasing your knowledge in a skill through academic pursuits. All of these actions can have an effect on your earning potential throughout your life.

One of the best things my parents did for me helped me get a head start on developing marketable skills. They did this by helping me become financially responsible for managing my own expenses as a teenager. This early start of financial responsibility helped me to succeed in the workplace and learn how to continually develop a marketable skill to increase my earning potential.

By the time I had reached my 20s, I had developed a marketable skill that paid me at least $2.00 more an hour than the minimum wage was at that time. This put me in a position to earn money that could set me up for a positive financial future. However, at that time I lacked other necessary financial goals. I ended up wasting more money on discretionary spending than on saving for my future. Based on my failure, I advise anyone in their 20s to start saving right away!

Improve Money Management Knowledge

My mother taught me different components of money management at a fairly young age. I am grateful for attaining this knowledge young as it provided a great foundation for my personal finance success. What I wish, though, is that I started applying all the components of money management into my life sooner. It would have greatly streamlined my current personal financial progress.

There are many components to money management and it changes as you enter different stages in life. Learning how to create a budget and how to track your spending is some components of money management. Other components may involve learning about various financial statements and the best methods for storing personal finance records. I wish I would have applied the art of creating and living within a budget sooner in my life. I didn’t take the time to learn enough about budgeting as it made me feel restrictive with my money. If I had taken more time to learn the whys and hows of budgeting, I would have discovered that budgeting actually gives you more power over your money. Therefore, the more knowledge you gain on different money management components the more you may be willing to take action on improving your personal finance goals.

Learn Personal Finance Language

Similiar to learning the components of money management, learning different terms to personal finance will be extremely helpful as you progress through life. Learn as much as you can about the components of budgeting, banking accounts, credit cards, loans, retirement accounts, investments, and so much more. Never be afraid to ask questions or to learn the good and bad experiences of others.

The more you learn the language involved in personal finance, the better you will be prepared to make financial decisions with confidence. Understanding the language of personal finance can allow you to understand how certain products work better. When we understand how financial products work and understand the definitions that come with the products we can avoid risky products. The best part about this financial goal is that you have unlimited free resources in learning personal finance language through the internet and local libraries. When in the process of researching and learning ensure that you are finding credible resources.

Gain Financial Independence

I remember I couldn’t wait to achieve financial independence from my parents once I had graduated High School. While I thought I was ready, my bank account and income had a different idea. It was one of the happiest times when I was finally able to financially support myself outside of my parents home. There were still times of stress and uncertainty, but it helped me to develop problem-solving skills and independence. I was given the opportunity to learn how to manage my money better and make financially responsible decisions. I didn’t always get to do what I wanted or what my friends were doing. However, I learned quickly how to be frugal and have fun at the same time.

The length of time that it takes to gain financial independence may be different for each individual. Nonetheless, working to gain financial independence is a good personal finance goal in your 20s. The sooner you gain financial independence, the better you will be prepared for life’s curveballs.

Aim for Financial Freedom

Along with gaining financial independence, you may want to begin getting a head start on obtaining financial freedom. Financial independence and Financial freedom can mean the same thing. However, when I refer to financial independence I mean supporting yourself with your earned income. When I refer to financial freedom I mean having limited financial obligations and freedom to make financial decisions without stress.

We are currently on our journey to financial freedom. We could be further along on this journey if we had started working on specific financial steps sooner. Steps such as building an emergency fund, minimizing our credit card debt and starting a debt repayment plan. We have now realized the importance and impact of taking these steps sooner to have financial freedom.

We are letting you know that it is never too early to start focusing on financial aspects of gaining financial freedom. These aspects are as simple as building up savings, getting insurance, saving for retirement and eliminating your debt. To gain a better understanding of where to start, first determine what Financial freedom means to you. Once you determine what it means, starting working the needed steps to obtain financial freedom right away. Your future self will not regret it!

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The priorities of these personal finance goals will differ depending on what stage of your 20s you are in. The best thing you can do is evaluate your current financial goals and determine if you are on the right path to achieving them.

Have you already achieved these personal finance goals in your 20s? What has helped you to achieve these goals? I would love to hear your responses in the comment section!