7 Money Moves to make in your Early 20’s

What money moves should we make while in our 20s? Our early 20’s are spent trying to earn money but does it all really end there? LJ and I have found ourselves in discussions to do with money and how to make the best financial decisions. In the spirit of spreading good knowledge and information, here are money moves to make in your early 20’s.

1. Learn

You might not have the capital ready to start making huge investments. However, that should not stop you. Your early 20’s are a place to learn about investments. Gobble up all the information you can, ask questions, research and practice. Forex trading platforms allow you to practice forex trading with ‘fake money’. Get to know what you can about cryptocurrency, bonds, stocks and compounding interest.

Money is not taught in school therefore it is up-to you to become financially literate. It can be overwhelming at first but I believe in you. A great place to start would be picking one investment path such as cryptocurrency. One platform that helped us out a lot was ClubHouse. On Clubhouse we got to learn and interact with people already heavily investing in crypto. They were all so willing to share their knowledge and expertise. LJ loves listening to The Bigger Pockets podcast while driving, they have got really great advice on Real Estate.

lady typing in a book

2. Track your spending

You might think you have it down or maybe that you have no extra income to save. This cannot be further from the truth. Knowing where your money goes is one way to start understanding your spending habits. I found this hard at first. By tracking my spending, I was going to find out things about myself that I was not ready to know. The hardest part is starting. After that, it is only uphill.

LJ and I have been able to gradually reduce our spending and grow our investments. I mean, just looking at all the subscription services we had signed up for was jarring. Apps such as Mint connect directly to your bank account for easier tracking. You could also go old-school pen and paper. Not sure where to start? Check out this amazing and super simple budget planner by Clever Fox.

3. Save Money

As you begin to cut back on unnecessary spending, you will find that you are starting to gain ‘extra’ income. As you decide on where you would like to invest your money, we recommend saving it. Choose a hard-to-reach savings account. Try to find accounts that; only allow a certain number of withdrawals or ones that require you to visit the bank to make a withdrawal.

Understand the power of compounding interest. While you are young, the biggest advantage you have is time. You can start saving money literally from today in places such as Government bonds. For Kenyans, check out M-Akiba. Starting early will always pay-out well.

Read Also: How to Live Frugally

money in a plant pot

4. Learn a skill

Am I the only one that keeps hearing this phrase: Multiple streams of income? No? Great! Its importance really came to light when the pandemic hit. It was not uncommon to see headlines of companies laying people of temporarily or permanently. All those hobbies and talents can be nurtured into a whole new skill. Sometimes, you could gain further skills from your current job.

Take for example, a blogger – You could learn web design, photography and even go further into coding a whole site! Diversifying your skills never hurt anybody. Try anything and everything under the sun. Plumbing, painting, blogging, creating logos on Fiverr or even selling your custom creations on Etsy.

girl holding camera

5. Find a Mentor

Mentors are the people who have ‘been there, done that’. Find a money mentor, who not only has expertise but has also been where you are and came out financially successful. Here’s some tips to help guide you;

  1. Find a mentor who gets you and is wiling to hold you accountable.
  2. Look for someone you trust as you will be sharing your personal finance situations with them
  3. Find someone who is willing share the knowledge.
  4. Stay away from “money-gurus”. You know those that made money from luck situations such as Dogecoin. I do not think that’s the place to get all your financial advice.
  5. Ask your friends and look around your inner circle, your landlord might be exactly who you are looking for.
  6. Finally, mentor someone – Chances are that there is someone who is where you were at some point. Share your knowledge and impact someone positively.

You should take your time with this one and try speaking to various potential mentors. This is one of those, “you will know when they are the one.”

mentor and mentee

6. Taxes

Why do they not teach taxes at school? Navigating taxes was definitely a challenge for LJ and I. While you have the time, try and understand your tax responsibilities, how to file taxes and deadlines. Speak to people around you that file their own taxes. Let them walk you through what the process is like. Get to know what the different forms are and what each item means. The last thing you want is the IRS or KRA coming after you.


7. Make Mistakes

While there are financial mistakes that will land you in trouble such as doing illegal business, making mistakes is a part of learning. Experiment with different ways of earning, saving and spending money. Some of our best money lessons came from making mistakes. For example, we were able to understand the cost of having a car by owning a car – who knew maintenance was the bigger bulk of it?

Tell me, what did I miss? What moves do you think someone in their early 20’s should make? Leave a note below!

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