Your 20s are a very important phase of your life. What you do in these 10 years will determine how the
rest of your life pans out. This applies in a big way to your health, and your wealth as well. However, the
later can seem like an alien concept to young individuals. This is understandable as most of them have
little or no experience dealing with salaries, savings & budgets.

They take on a very ad-hoc approach and this does not make for the strongest foundation to their
financial life. Keeping this in mind, we’ve highlighted some of the most important money moves anyone
in their 20s should make, that will ensure they have savings, stability & financial success in the future.

1. Get budgeting.

This is numero uno on the list of things to do when you hit 20. Figure out how much money you have
and all the things you have to pay for in a month. It’s essential you know your monthly income and
outgo; it ensures you spend within your limits and keeps your money matters on track.

2. Start an emergency fund.

If you’ve just landed a job, you should start creating an emergency fund. Put away a small amount of
your salary every month until you have enough to cover 6 months without any pay. This money will
come handy in case of an emergency or periods of unemployment. Make sure this amount is easily
accessible; you can invest it too as long as you can liquidate it quickly.

3. Think investments.

Look for investment instruments that match your risk appetite and move on them. The earlier you start
the better dividends your investments will pay in the future. This is more than general advice – it is
called the ‘Power of Compounding’ – it basically shows how investing today will fetch you better returns
than investing tomorrow. Read up on this concept to get a clearer understanding. Remember to have
goals for your investments such as your first car, the down payment for a home, retirement, etc.

4. Get insured.

If you don’t already have health insurance, you should get it. It makes sense to buy it when you’re young
as it is cheaper and the waiting periods are very short. In your late 20s, if you have dependents, it also
makes sense to purchase life insurance. Term plans are a good place to start – they are affordable and
offer very high payouts. Both these insurance instruments should also have helpful tax benefits that will
come handy later.

5. Try your hand at debt.

Enroll for a credit card or try taking a personal loan in your 20s. This will give you the experience you
need to handle debt in the future. Also, repaying your credit card and a small personal loan will boost
your credit score, making it easier for you to get big-ticket loans later in life.

Your 20s won’t be easy! Especially when it comes to money matters. There’ll be times when you’ll find
yourself behind the expense ball or require money to finance life’s special moments. In such scenarios,
we at InCred can help you with customized personal loans & financial guidance. All you have to do is get
in touch with us. We hope this article has been helpful, good luck and all the best!

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