Rachel Cruze: 11 Best Money Habits To Have in Your 20s
Written by
Ashleigh Ray, AI Editor
Edited by
Ashleigh Ray
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Welcome to a thrilling chapter of your life — your 20s. This era is packed with excitement, dreams and, admittedly, a bit of uncertainty. Amid the whirlwind of charting your own path, one thing you definitely want to nail down is your financial footing.
Money expert, Rachel Cruze recently talked about the best money habits to have before you turn 30. If you’re looking to set yourself up for financial success, her 11 money habits are sure to set you on the right track.
Whether you’re just stepping into your 20s or bidding them farewell, it’s never too late to cultivate these pivotal money habits.
Live Within Your Means
First up, embrace the simplicity yet rarity of living within your means. In an age where social media tempts with glitzy lifestyles, it’s crucial to resist spending beyond your wallet’s capacity.
Remember, overspending today is like borrowing from your future self. Make ‘I can’t afford it’ your financial mantra when necessary. It’s not just a habit; it’s financial wisdom in action.
Steer Clear of the Comparison Trap
In this digital age, it’s easy to compare your financial journey with others. However, remember that each journey is unique. Cruze says to focus on your financial goals and celebrate your milestones without getting sidetracked by others’ perceived successes.
Educate Yourself Financially
Financial literacy isn’t typically part of school curriculums, but don’t let that be your handicap. Dive into books, listen to podcasts and follow credible financial advisors.
Your money should not be a mystery to you. Knowledge truly is power, especially in the realm of personal finance.
Master the Art of Budgeting
A budget isn’t a financial straitjacket. It’s your strategic plan for financial freedom. Cruze recommends you channel your funds purposefully. Adopt budgeting as a regular practice and watch your financial stability solidify.
Build an Emergency Fund
Life is full of surprises, and an emergency fund is your financial buffer against unforeseen events. Cultivating the habit of saving for emergencies equips you to handle life’s unexpected turns with grace, according to Cruze.
Address Your Debt
Debt can be a formidable foe if left unchecked. Face it squarely, understand what you owe and formulate a clear repayment strategy. Escaping the clutches of debt liberates you to focus on wealth building.
Think Long-Term
Short-term pleasures can lead to long-term financial pains, so Cruze suggests planning for retirement early. The wonders of compound interest mean that even modest savings today can blossom into significant sums over time.
Monitor Your Bank Account Regularly
It might seem trivial, but regularly checking your bank account keeps you attuned to your financial health. It’s a simple yet effective way to keep surprises at bay and ensure you’re in sync with your financial in-flow and out-flow.
Pay Bills on Time
Cruze advises you avoid the needless drain of late fees by paying your bills punctually. Timeliness in your financial obligations saves money and keeps your financial reputation in high standing.
Hone Your Negotiation Skills
Whether it’s a salary discussion or a major purchase, negotiation can be a potent tool in preserving your finances. Learning to negotiate effectively can mean significant savings and better financial terms in various aspects of your life.
Embrace Your Era
Remember that being in your 20s is a unique phase of life. While it’s important to be financially prudent, it’s equally crucial to savor the journey.
Financial management is a marathon, not a sprint, and these habits are your training regime. Stick with them, and you’re not just crossing the finish line; you’re enjoying the race.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
More From GOBankingRates
