When it comes to managing your money in your 20’s you have to grow up fast. From student loans, pressure to start saving very early for your retirement and housing markets your first few paychecks are in demand and there’s little to no room for mistakes. So here are some tips for finances in your 20s. Try and ignore your salary, it can be very pricey! You will need new professional clothing and maybe even something as extravagant as a new car and place to live.

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It may sound like it is a bit backwards but moving back home may be a good idea. You wouldn’t be the only person considering something like this. Living at home can really provide you with flexibility. Make a plan for paying back your debt and creating a budget you can live with.

Limit your credit card debt 

Credit and debt can really build up after university, the expense usually rises, but you are still making do on a starting salary. Credit cards also come with very high interest rates and fees if you don’t make the repayments on time. Pay off any debt that you may have, although your goal should be to pay off each card in full each month, we all know that this is sometimes not possible. This is why you should start paying it off first and this will lower your credit limit, since exceeding the limit can tack on extra fees and damage your credit rating. When taking out your credit card you should ensure that you are not paying for any hidden fees such as PPI. It’s easy than you think to claim back PPI.

Try putting your student loans on autopilot 

Ensure you want to be sure to make all monthly payments to your student loan provider, there’s not usually any need to fast track your payments so in other words you can make really slow and steady monthly repayments throughout the life of the student loan so unless it has an abnormally high interest rate or you have the extra cash to spare to pay off the debt altogether.

Try and stick to having good credit

Reduce your interest rate: When you receive one of those applications for a lower-interest credit card in the mail, call your own credit card company and ask the customer service representative to match the deal. Try not to have more than one card in possession. With several, you may not accumulate enough credit on any one to make it worthwhile. Find one no-annual-fee rewards card. Pay the bill in full each month, and the “gifts” will be truly free. 

You choose how often you want to transfer money and which accounts you want to use for the transfers. You can even split your direct deposit between your checking and savings accounts to contribute to your savings with each paycheck. Thinking of saving as a regular expense is a great way to keep on target with your savings goals.