Aug 2022
7 mins read

7 Financial Goals to Set in Your 20s

The 20s are a hugely consequential phase of your life – you’ll finish studying, start working and lay the foundations of a long career. Try to use this time to build good financial habits and give yourself a head-start in life. It might seem hard at first, but these habits will help you make better financial decisions to get ahead of your peers, and set you up for financial security early in life.

Become financially aware

Understanding how finance works can help you make better choices with your money. Thanks to the internet and new education platforms, learning has never been easier. You can choose from a variety of media, including podcasts, blogs, videos and articles to keep yourself informed. 

point 1

Plan your budget

It's essential to know where your money goes every month. Creating a budget helps you track and control your day-to-day expenses. It also helps you keep track of your savings and investments, so you can see how financially healthy your everyday choices are. 

point 2

Save for emergencies

You never know when a health or personal emergency is around the corner, or the kind of hole it could burn in your pocket. Start saving a little every month to be prepared for anything life throws at you. 

point 3

Save up for short- and long-term goals

Setting short- and long-term financial goals can boost your financial productivity. From building an emergency fund to saving up for your child’s education, these goals dictate important milestones in your life – so smart planning is essential.

point 4

Settle high-interest debts

If you accumulate debt at 2% interest per month, you may  end up paying much more than the amount you borrowed as a loan. Trying to settle your high-interest debts early should be at the top of your list of priorities.

point 5

Plan for retirement

When you’ve just started working, it might seem bizarre to be thinking of retirement. But the earlier you plan and invest, the less you’ll have to worry later – and with a good retirement plan, you could see your money compounding every year. 

point 6

Start investing

Once again, the earlier you start saving, the bigger your corpus, the quicker you’ll achieve true financial stability. 

point 7
The above mentioned are the seven financial habits of successful people in their 20s. Each of them will set you up for financial stability and help you make the right financial choices – because it’s never too early to start planning your life.
PGIM India Asset Management Private Limited
(CIN - U74900MH2008FTC187029)
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Email: care@pgimindia.co.in
This is an Investor Education and Awareness Initiative by PGIM India Mutual Fund.
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