Everyone knows the adage, “Time is money,” and that adage certainly applies to making the most of your money in your 20s. Managing your finances for the first time can be overwhelming. Those in their 20s have the greatest financial asset of all time. Time makes money grow when it is invested wisely. The sooner you start making a financial plan, the brighter your future will be. Here are several financial intelligence moves for twentysomethings.

  1. Set financial goals. Put them in writing and calculate how much you will need to save each month to reach your goals. Remember to take note of financial goals big and small, from going to spring break next year to retiring early.

  2. Make a budget and stick to it. Limit debt to your ability to pay it off. Monthly credit payments (not including mortgages) must not exceed 20% of your net income. Also, start by paying existing bills before incurring new ones.

  3. Start creating an emergency fund. This should equal three to six months of living expenses and should be used ONLY in the event of an emergency.

  4. Save at least 10% of your gross income. Put it in your emergency fund, for future goals and retirement. If you can’t earn 10%, start small and work your way up to 10%. Saving any amount is better than nothing.

  5. Take advantage of the financial services that your bank or credit union offers you as a customer / member.

  6. Get adequate insurance. This includes health, disability, auto, renters / homeowners, and life insurance. It is very important to avoid buying insurance that you do not need in your 20s.

  7. Once you have completed steps 1 through 6, start investing small amounts of your savings. Do this gradually over time, with sensible contributions.

  8. Save money for retirement. I know that retirement is not a blink on your radar screen. But it will never be easier to start saving than right now. Use tax-advantaged savings plans from your employer, such as 401 (k) plans, or open individual retirement savings (Roth IRA) plans from your bank or credit union.

  9. Build your credit history. You will have to go into debt because having no credit is just as bad as having bad credit. Most importantly, you show that you can manage that debt to build your credit history and get a good credit score.

  10. Write down your short, medium and long term goals. I am not suggesting that you need to map your entire life. However, having an idea of ​​where you want to go in life will make it easier for you to make smart decisions with your money. With that in mind, write down where you want to be in a year, five years, 10 and 20 years. Your personal goals can be things like marriage, children, travel, career, owning a home, etc.

  11. Plan to pay cash for everything. I believe that being able to pay cash for everything can be life changing. Tell yourself that you will be the person who always pays cash. That does not mean that you will never get a loan or a credit card. But it does mean that you will think a little more before you go into debt.

  12. Keep your job skills fresh and up to date. This will keep your job options open and allow for salary increases.

  13. Keep all financial files. Put it in a neat and easily accessible system so that you have them available when you need them.

  14. Get out of the bank of mom and dad. It is time to release your parents from your financial responsibilities. In your twenties, your main goal should be to be self-reliant. So, look to get off your parents’ payroll and onto your own.

  15. Clean up your online presence. Like it or not, your activity on social media is visible to everyone, including all your current or potential employers. Get your digital act done by searching online at Spokeo.com or pipl.com to see what’s already available for people to see.