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Money Troubles In Your Twenties? Here’s How To Get Back On Track

They don’t always tell you how hard adulthood is going to be. In fact they don’t really tell you at all. When you’re a teen, you often look to those in their twenties and dream about living like they do. Because they always seem to have it all, don’t they?

A great job, amazing friends, perfect boyfriends, and definitely no troubles. Because it’s teens that have the troubles, right? Wrong!

As much as your teenage years can be tough, they’re nothing compared to being out there in the real world. When people used to tell you that the high school drama wouldn’t matter once you left, they were right!

Things like rent money, your credit score, and car payments become your new focus and are a heck of a lot more stressful than anything high school could’ve ever thrown at you.

And this is why so many people in their twenties can suffer with money troubles. Sometimes, parents don’t always know how to prepare you for the big wide world when it comes to money. They just assume that you’ll know.

But it can be hard to manage a budget and live within your means when you get your first job. You’re not always earning the big bucks right away and you still want to live a nice life. This can often lead to forming bad habits when it comes to your money.

If this sounds a lot like your situation, don’t feel bad! You don’t have anything to be sorry about. Because these things happen. The most important thing is that you know you’re on a slippery slope and are willing to do what it takes to fix it.

If you’ve found that you’re in a difficult financial situation, here’s how to help yourself to get back on track.

 

Disclosure: This post contains affiliate links. Which means at no extra cost to you, I will be compensated when you use my links. You can read more about our disclosure here.

 

Write Everything Down

Your first step before you try to do anything about the situation, is to take more of a step back. Right now, you’re not doing so well in the financial department, but making a rash decision isn’t going to help you!

So, you’re going to want to sit down, grab some (or a glass of wine cause this is going to be rough) and work everything out. Look at what you earn each month, what your main bills are and write it all down. 

This seems like such a simple step but once you grasp everywhere your money is going each moth, it will be easier to create a monthly budget.

Start To Track What You Spend

Okay so you know what comes in, and you have an idea of what goes out, but that still isn’t telling you exactly what you’re spending your money on. Yes, you’ll write down what rent you pay and the bills too, but you may not really realize exactly how much money is going to hair products or dinners with friends.

You’re going to want to track EVERY PENNY that is coming in an out of your bank account. Keep your receipts, start a spreadsheet, use an app, do whatever you need to do in order to really uncover how you spend, what you spend, and on what.

Clarity Money is a great app that will track where all of your money is going automatically! All you have to do is connect your bank account and Clarity Money will show you what money is going to your bills, entertainment, shopping, and anything else that is a normal monthly expenditure.

It will even tell you the exact stores that you’re spending your money at!

If you use my link you’ll get $3 for free just for linking your first bank account!

Create A Budget

Once you’ve started tracking everything that you spend, you may find that you spend far more on coffee runs than you realized.

So your next step is going to be getting that spending under control by creating a budget!

This is probably one of the most important steps because a budget will make sure that your essential bills are covered while still making sure you have some spending money and money for your savings.

Whether you’re still living at home, or are officially out on your own, I can walk you through the budgeting process!

Don't know the first thing about budgeting? I've got a beginners budget full of tips to help you out! Struggling to make your first budget in your twenties? It's okay! I'm going to walk you through it!

Have A Goal

Next, you’re going to want to have a goal in mind. You see goals make saving money waaaaay more fun because you have something you’re constantly working towards.

Whether it’s a more comfortable lifestyle, a down payment on a car or house, or anything in between, having a goal and keeping it in mind will help you stay on track.

A Post You Might Enjoy- Savings Accounts You Need To Start When You’re Young

Be Open About Your Issues

So far we’ve worked on getting you to be a bit more aware of your financial situation. And by doing so, you may have uncovered some issues.

In fact you may currently be in a corner rocking back and forth and freaking the f*ck out. But take a deep breath!

EVERYONE has money issues! You are most definitely not the only person struggling to juggle the bills while still having a social life.

Now that you know where your weak areas are, you can start working to improve!

Take Back Control Of Your Debts

From here, you’re then going to want to get a better hold over any debts that you have. That could be credit card payments, student loans, or even car payments.

It doesn’t matter how much you owe, or how young you are, you can get out of debt quickly and efficiently if you have a plan.

You may want to get more info about National Debt Relief to help with that, or even speak to your lenders. This can help you to reduce what you owe, or get some relief to make paying things off a little bit easier.

Start To Save

Having money in savings is what I like to call a security blanket or a buffer. You can save up for fun things like a new laptop or a spring break vacay, but you also want to have that buffer to back you up in case your budget doesn’t go as planned one month.

Lets say you get sick and can’t make it to work one week. If you have a buffer fund, you’ll still be able to cover the bills even if you don’t have your normal income that month.

You can check out my favorite savings app to see how I effortlessly save money each month!

Spend Consciously

Gone are the days where you can go crazy at the mall when payday hits. As tempting as it is to spend that beautiful new paycheck, you have to keep your budget in mind if you want to have rent and groceries covered.

With more conscious spending, you should be able to think before you hand over your money to make sure that every purchase is worth it.

In other words don’t spend $80 on an Uber ride and drinks at the bar if your electric bill still isn’t paid for! You may want to have a night in with the girls instead.

Focus On Delayed Gratification

You may want to start working on a little delayed gratification when it comes to your money. We’re usually so quick to buy things right away to feel good about how we’re living at the current moment.

But, you may be able to make your money work more for you by focusing on bigger things that your money can do in the future.

So maybe instead of getting the newest phone to hit the market when your old one still works perfectly fine, you could use that money to save up for a much needed down payment on a new car!

Stay Focused And Kick A**!

Look, doing the right thing when it comes to money isn’t always going to be easy! There are going to be times when you have to skip out on a girls night out, or walk away from the super great deals at the store.

But trust me, it’ll be worth it! When that unexpected car repair hits or you can’t make it to work and you have money in savings ready to go, you’re going to feel great!

Stay focused, have fun, and kick some finance a**!

Good Luck!

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