The Ultimate 20s Financial Checklist

No matter what your current financial situation is, building healthy financial habits now will help you achieve your long-term goals.

Develop A Plan To Pay Off Debt

Student loan & credit card debt worsens over time due to interest rates. Make sure you are prioritizing and planning for how you will pay off these types of high-interest debts.

Start A Budget

Developing budgeting skills early on will make it an easier & more consistent habit. A sustainable budget in your 20s can follow the 50/30/20 rule. 50% is allocated to needs (rent, food, etc.), 30% to wants (concerts, nights with friends, etc.), and 20% to savings and debt payments. Your situation may be unique however, in which case you should always discuss it with your advisor!

Start Saving

Developing good savings habits now can set you up for the future. Some good habits to start with include automating savings, planning out purchases ahead of time, and getting rid of superfluous purchases.

Get Your Credit Score Up

A good credit score provides countless financial benefits. A good credit score means lower interest rates, more negotiating power, easier approval for home buying, and better interest rates. You can raise your score through many different routes. It’s best to discuss with your advisor to figure out which way is best for you.

Take Advantage Of Benefits

Does your employer match 401k contributions? Are there other tax advantages such as Flexible Spending Accounts (FSAs) or commuter benefits you can utilize? If so, do it! Examples of non-retirement account financial benefits offered by employers include bonuses, insurance plans, paid vacations, free meals, pensions, stock options, commuter benefits, gym benefits, and any other perks that may aid in your budget planning.

Develop A Six Month Emergency Fund

Avoid a financial headache, establish an emergency fund early on. An emergency fund can be of use for unforeseen road bumps like car repairs or medical bills.