5 Money Tips to Win Big Financially For Young Adults

These money tips for young adults are those that I live by that would help you be better at managing money whilst enjoying yourself.

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A study by The Money Advice Service found that a number of adults have little faith in their ability to manage their money.

Well, I’m on a mission to do something about that!

Money is simply a tool that if used well, can yield great fruit in your life.

I’ve put together these tips as a way of empowering you to take control of your money and become financially confident.

Why?

In my early days I was always clued up on the latest song, upcoming group, I was even an early adopter of the newest slang.

I may have been untouchable with the latest trend but when it came to money, I was only concerned with buying the latest and flashiest.

I was not one to show off or boast (and still not) but I wasn’t one to hold back either.

I may not have had all the apple gadgets but I would at least have one or two of them.

How I wish I was more bothered about developing my money skills in other areas other than spending.

These tips are what I would say to Thando in his twenties but to be fair, still apply to me today.

5 Money Tips for Young Adults

View these tips as money rules to live by.

These are money rules that I am still applying in my life and money today and they have served me well.

But had I lived by them in my early twenties, trust me I would be in a much different position right now!

1: Enjoy Today, Think of Tomorrow

No one wants to be told to not enjoy themselves nor would they even listen! I certainly wouldn’t. 

Life is meant to be lived but time runs fast!

Enjoy your life, socialise, mingle, explore, do you, and enjoy it whilst you can!

But time waits for no man, you’ll be 10 years older in no time.

You’ll find yourself married, a parent, or working so much you’ll have no time to yourself.

So enjoy today but keep an eye out for tomorrow.

How You Can Apply This To Money

Firstly, you could open a savings account and start saving money that you won’t touch today. You may not see the reason why today but tomorrow you’ll thank yourself for it.

Secondly, you can start investing small amounts every month, you’ll build yourself a nice amount over time thanks to compounding interest.

Don’t borrow from tomorrow to fund today

Similarly, don’t take out a new car on finance because you want to be seen driving the latest German whip yet you don’t actually need a car.

In addition, don’t get a credit card and get into unnecessary debts because you want to live a certain lifestyle today that you can’t afford.

Trust me it’s not worth it. Enjoy today without robbing your tomorrow.

2: Grow your knowledge about money

You would have been through some form of education and learnt some life lessons about friendship and relationships.

One thing you have likely not been taught about deliberately is money. 

Read books about money. Watch videos about financial literacy. Talk to someone you trust about money.

At this stage I want you to learn about money. Rich Dad Poor Dad is actually a great book that can get you started on the right path.

Whatever piques your interest and curiosity, learn about it.

You may be fired from your job or scammed out of your money, but no-one can take your knowledge.

Why This Matters

Th older you get the more money you’ll make. But all that money will be wasted if you don’t learn what to do with it and how to make it make more money for you.

The younger you are the more opportunity and time you have to take risks and try something.

If you lose money and it doesn’t work out, chances are you’re still living at home with the family or don’t have too many life responsibilities.

You have more to gain than to lose.

Trust me, knowledge about money is what many adults wish they had when they were younger.

3: Explore career and business interests

Be explorative in your ideas and plans and don’t be afraid to give things a try.

How is this a money tip?

Firstly, this is heavily tied to the money you’ll earn/make but in addition, it’s about finding your feet too.

Your income is what determines what options you have in life and the kind of lifestyle you’ll live.

You can actually go from £25k salary to a 6 figure salary by always thinking ahead and making career moves.

You can also plan to build a profitable business and build a life where you have multiple streams of income.

Sticking to one job with small increases each year is not as good as making career moves that increase your income more.

To explore is to try something new, what if I already know what I want to do?

Exploit! To exploit means to make the most of the situations you are in.

For instance, aim to double your salary every few years through internal promotion or changing employers.

Ultimately the end goal is to put yourself in positions where you can supercharge your income and not become comfortable in one job.

4: Learn basic money management

You either already are or at some point will start to manage your own money.

Earlier I said to learn about money and read about how it works; well that was about knowledge – this is about the practical.

The best thing you can learn right now is how to practically manage the money that you get.

This begins with having a budget. A budget is another way of saying a plan for your money.

Every week or every month, what are you doing with the money you earn or get?

Afterwards, learn how to calculate your net worth.

In a nutshell, your net worth is a calculation of how rich or poor you financially are on paper.

You may not have much to put in that calculation right now but knowing about your net worth will serve you well.

Ultimately, people become rich by increasing their net worth, so keep an eye on that and aim to build it every year.

5: Don’t be selfish

This one is an important life lesson. Have a mindset to always be open to extending generosity and love to others.

For instance if you live with your family you could help out with the living expenses, do a food shop once a month, or give your time to help with gardening.

You may choose to give a portion of your money to a charity, religious institution, or donate your old clothes to a local clothes bank.

Money is called a currency because it’s always in circulation, like water.

So it simply flows through you onto someone else, and you have the power to impact other people’s lives in more ways than you think.

Take Action

Which of these tips resonated with you the most?

Share this with your friend, family, or partner to encourage them start saving consistently too.

Download our Free Financial Health Check to give you a good overview of your financial health.

Let us know how you’re getting along by getting in touch with us, we’d love to hear from you

Comment below, what tips would you add or change?

Knowledge is powerless without action

Take action, and take care

Thando