Edith's Endeavors

Hello to all my fellow 20-somethings who are just starting to step into their financial mastery era! If there is one thing that I have learned, it’s that in general as we were growing up, most women were not taught mastery financial skills, or in some cases, even basic financial skills. Money and finances were not something we were brought to the table to learn. I think that’s bullshit. In my opinion, mastering effective money management is key for securing your financial future. So, in this blog post, we’ll delve into vital money management strategies tailored specifically for young women in their 20s just stepping tinto their financial learning era.

1. Develop a Budget and Stick to It: I feel like we’ve all heard this one a lot, but it’s an important one! Start by creating a personalized budget to track income and expenses. How much is your rent? Your car payment? Your student loans? Do you have credit card debt? Knowing what money is coming in (income) and what is going out (bills/spending) is KEY in making your budget. Once you know these numbers, start setting goals (budgets) on how much you want to be spending. For some people, utilizing budgeting tools or apps to maintain consistency and accountability can be very helpful!
2. Prioritize Savings: Begin building your savings early, allocating a portion of your income each month. Even small contributions can yield significant growth over time, thanks to the power of compounding interest. I cannot stress how IMPORTANT this is! Less than half of American (yes, Americans, not just people ages 20-30) can cover a $1000 emergency. Ideally you would save up to 6 months of your life expenses, but the most important thing is to START. even if it’s only $500, that’s still $500 you wouldn’t have to put on a credit card! (This is also where a HYSA can come in handy!)
3. Invest in Yourself: Invest in education, skills, and personal growth opportunities. These investments can lead to higher earning potential and expanded career prospects. Maybe that means going to college, maybe that just means getting a certification, or saving up money to take a course. The biggest thing is that you have a plan to better yourself somehow.
4. Manage Debt Wisely: Learning about and understanding and managing debt responsibly is VERY IMPORTANT. Not many people understand these things when they are first stepping into their adult lives, and as a result, a lot of young people (especially women!) take on debt they don’t understand and get stuck trying to pay if off when they get older. (*cough* me *cough*) which is why prioritizing the repayment of high-interest debts as soon as possible (and WHY you should do so) is SO IMPORTANT.
5. Plan for Long-Term Goals: Start envisioning your future and set clear financial goals, whether it’s homeownership, starting a family, paying off college, or traveling. Having a concrete vision will guide your financial decisions and help motivate you when you are saving (especially when you have a friend asking you to take ANOTHER euro summer trip)
6. Secure Insurance Coverage: Protect yourself from emergencies as much as you can with insurance policies. I know they can be expensive, but I know from experience that they can REALLY save you in a pinch. Car and health insurance are the two policies that you should prioritize over others. Afterall, there is a massive difference between paying $500 when you get in a car accident and paying $3000! make sure to shop around every few years to make sure you are getting the best deal as well, just because you’ve been with one company your whole life and have ‘gold’ status, that doesn’t mean you’re getting a good deal!
7. Build Good Credit: Maintain a positive credit score by paying bills on time and keeping credit card balances low. A good credit history is crucial for accessing future financial opportunities. Even if you ARE carrying debt, it’s very important to pay on time as that is one of the factors weighting heavily on your score!
8. Set SMART Goals: Establish Specific, Measurable, Achievable, Relevant, and Time-bound goals. This framework ensures clarity and focus in your financial planning, not just aimless saving. Are you working toward a trip next summer? Great! what do you have to put aside each month to make it happen? Want to pay off your cards? Great! When do you want to have that done? How much extra do you have to pay per month to achieve that?
9. Seek Financial Education and Guidance: Educate yourself on financial matters through books, online resources, or professional advisors. Knowledge empowers informed decision-making. One of my favorite books is by Tori Dunlap- Financial Feminist is by far an EXCELLENT book to get started with.
10. Practice Self-Care: Prioritize your well-being amidst financial management challenges. Taking care of yourself mentally, physically, and emotionally is crucial for long-term success. IF you burn yourself trying to save every single penny, you’ll burn yourself out. It’s simply not sustainable. Give yourself grace to grow and make mistakes. It’s our first time doing this for many of us, and it’s ok to mess up along the way!

In summary, establishing strong financial foundations in your 20s is paramount for achieving lasting financial security. By implementing money management tips and staying proactive, you can take control of your finances and pave the way for an amazing future. It;s also never too late to start learning! Take control of your financial future!