Life can sometimes feel like travelling in a new country with no wi-fi - you’re mostly lost until you make enough wrong turns to figure out the right way.

But unlike travelling, there can be some reaaaal consequences when you just “wing it” with your money.

You could get into debt that takes years to pay off, shortchange your potential for investment growth, or not build enough of a nest egg to retire comfortably…all because you didn’t know better.

But it doesn’t have to be this way. If you’re in your 20s, this is a prime time to set yourself up for success in the years to come.

So we’ve put together a guide of smart money moves to make in your 20s to help get you started on the right path!

Hint: Even if you’re not in your 20s, it’s never too early or too late to take control of your money.

Building strong foundations

Your 20s can be a confusing decade - starting your first adult job, moving out of home, and becoming financially independent for the first time (#help)

It’s the decade of sensory and information overload… all while your frontal lobe is still developing.

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But that’s why it’s also the perfect time to start building your money foundations and financial confidence. Here’s where to begin:

💰 Budgeting basics: Learn how to track your income and expenses. It can feel scary at first, but once you get used to it, your transactions become information that helps you make better money choices. If you’re spending less than you earn - you’re doing well kid!

💰 Build an emergency fund: You never know what life will throw at you. Having 3-6 months of expenses saved up for unexpected events can be a HUGE lifesaver that takes the edge off a stressful situation. Trust us, you won’t regret this one.

💰 Tackle debt early: If you’ve racked up high interest debt (think credit cards, buy now pay later, or personal loans) this can come back to bite you real fast. It also impacts how much money you can borrow for a home loan later on. So prioritise paying off this debt asap!

💰 Set some financial goals: Saving money isn’t fun unless you have some goals. Do you want to travel the world? Save for a home? Buy a new car? Knowing your WHY can help you stay disciplined when your friends want to drop $$$ on a weekend bender.

💰 Start investing: Historically, the share market has delivered about 9-10% returns each year, compared to a regular savings account which returns 1-3%. This means, you can reach your goals much faster by investing. Although the learning curve can be a little steep, starting in your 20s means you’ll have time to build confidence and knowledge. Remember, the first step is always the hardest!    

As always, do your research first before diving into a new investment and make sure it’s the right move for your personal situation. If you want to learn more about investing in general, check out Flux’s Academy course on ‘Understanding the share market’.

You don’t have to have your whole life sorted in your 20s, but building a few strong money habits now can make a world of difference in your 30s, 40s and beyond!