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MUST READ: #TheSeven financial habits to cultivate in your 20s


Many of us think that saving is only for the working class. However, we got it all wrong. Saving your pennies is a great habit to cultivate and is sure to pay off in future. Being financially literate at your 20s will ensure you are well informed to allow one to take calculated risks at an early age.

1. Create a realistic budget
It is important to critically consider a budget that will not strain you. This is the most important thing in wanting to be financially dependent, get this right and all the other steps will fall into place. Ensure your budget is comprehensive, in your 20s this is a great time for trial and error. It is crucial to do some research and know what works for you as soon as you can.

2. Save for the future
You might be young now, but time never stops. Save for your retirement. Yes, think about your retirement as early as now and start saving for it. Research and know how to save for that time, because a time is coming where you will need that cash. Always be considerate of your future.

3. Get a side hustle
Whether you work or attend school, always make an effort to supplement your main source of income. In your 20s flexibility could allow one to get freelancing opportunities or even part-time jobs. It may not necessarily be the career of your choice but could be something you like doing, but let it earn you something extra that will improve your income.

4. Maximise your talent
We all have talents, something we are good at. The talents and skills is a great determinant of our financial potential. It is always right to develop your talent right at your 20s as it will be helpful in future. Assuming you are a writer, while still in school you can try the online writing just to improve yourself and get something small while at it or better still get an internship opportunity in a local newspaper. This gives you confidence and increases a chance for you to growth.

5. Invest wisely
It is in our 20s that we start making choices about investments. You might be thinking of the kind of house you would want to live in the next 5 years and other ventures you might have interest in. This kind of thinking will lead you to keep saving for even more important things.

6. Think about insurance
Let’s face it, in our 20s, most of us know very little about insurance. Ignorance often learning more about the available types of insurance. Many in their 20s are lead to use what our friends or our parents use. In your 20s, it is crucial to be very informed and understand what suit your needs.

7. Consider joining a Sacco
One might not be the financial genius but we should strive to get informed about our savings plan. That’s the advantage we have of being in our 20s. Let’s start making informed decisions to better our future through saving. Learn what the benefits of a Sacco are, and make an informed decision before signing up to one.


This is article was written by Capital Campus Correspondent, Vaines Msinga.