Top 5 Money Tips For People In Their 20s & 30s

Financial management is probably one of the hardest things for people in their 20s and 30s. This is because at this age most people are not thinking about saving and the future but are focused more on spending what money they have.

Here are some financial management tips to help you

1. Learn Self Control

This is something you need to have learnt as a child but if you did not and you are prone to impulse buying then it is important that you find a way to learn this trait.

You need to ensure that you only buy things that you have saved up for instead of taking a loan to do it or spending money intended for saving.

Take for example, if you want to buy shoes it is important that you save money for it and don’t just use the money you receive as your pay.

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2. Start an Emergency Fund

We cannot predict the future but we do know that sometimes things happen. You should always have an emergency fund account where you save money for a rainy day.

This means that even if you lose your job you will have some money to use as you look for a new job without spending every penny you own.

With an emergency fund you can handle the events that take us by surprise without having to spend money set for other savings accounts and having destroying your budget.

3. Start Saving for Retirement Now

It may seem too early to start thinking about retirement however the sooner you start saving for your retirement the more money you will have in the end.

Which means you will have more financial security when you are no longer working. This can be done by creating a retirement plan whereby you save monthly towards your retirement.

4. Guard Your Health

Most Kenyans think they do not need health insurance but in fact it is very important when it comes to managing your finances.

Take for example you are involved in an accident and have to spend at least 3 weeks in hospital. The bill will be very expensive and you would probably end up borrowing just to pay it.

Now, if you had health insurance it would cover some or even all the costs leaving you stress free and debt free.

Therefore it is advisable that you make contributions towards health insurance because it is a good investment.

5. Know Where Your Money Goes

How many times have you asked yourself where your money went? This is a result of spending money without having a proper budget or way to check your spending.

Budgeting is the most important part of financial management and therefore it should be taken seriously.

It is important that you know how you are spending your money otherwise you will misuse it. Sit down and come up with a budget that allows you to save more than you spend.

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In order to live a comfortable life in future it is important that you start having good financial management practices that will positively impact your financial status.