Do you wish to be financially stable in your 30s and 40s? Then here are some moves you need to make while in you are in your 20s

The twenties is the time of exploring, learning, and making memories, but it is also the time when you get your first job and begin taking responsibilities for your finances.

So, while you are out there living your life to the fullest, make sure that you make these financial moves while you are in your 20s: 


1. Stop depending on your parents

You must have been your parents’ little girl for years – they took care of your financial needs and pampered you to no end. Now, it’s time for you return their favour. Start taking control of your finances – right from budgeting and expenses to paying insurance premiums. This way you not only reduce the burden on your parents but also give them a reason to be proud of you.

2. Create a debt-repayment plan

Your parents must have taken an education loan to get you to study in the best college, taken a loan to buy a two-wheeler to help you commute or paid off your credit card debt after you went on a shopping spree. Think of how you can repay the loan or debt as soon as possible. Your loan attracts interest and defaulting on it spoils your credit score. So, make regular and timely payments towards your loan.

3. Develop the habit of saving

Now, that you earn you might be tempted to splurge. While enjoyment is important, it is not wise to spend your entire income. Embrace the habit of saving because as they say, “a penny saved is a penny earned.” In the beginning, it might seem a bit difficult to save along with managing all the expenses. But early savings could help you accumulate money for the future.

4. Learn the ropes of investing

Investing and creating a financial portfolio is the key to achieving financial independence. However, investing is an art and requires knowledge. You can begin learning the basics and honing your investment skills – know your financial goals, risk appetite, where to invest, how to invest and for how long. As you save, invest your savings. You might make some wrong decisions at first. Learn from your mistakes and you will be amazed by the power of compounding.

5. Get insured

Being able to protect yourself financially forms a huge part of becoming financially independent. Hence, it is crucial that you buy an individual life and health plan. Make sure that the sum assured is sufficient. Given the rising rate of inflation, you’ll need a sum on the higher side. If you feel that you cannot afford the premiums for higher coverage, start small. Choose an affordable coverage level and then buy a top-up health insurance plan. The plan would be to increase the sum insured without it weighing heavy on your pockets.


Having age on your side gives you a lot of financial advantages, the most important being ‘starting early.’ Hence, if you make the above-mentioned financial moves while you are in your 20s, you would find navigating your later years easier. So, what is stopping you?