What are some smart moves a 22-year-old can make as soon as he/she starts earning?

Get more education. Invest in yourself. Look at the things you can do in your 20’s that you won’t dare try later. Your body can handle life without luxury and your needs are small. Be courageous and cross off your bucket list by doing one thing at time and watching your budget.


Watch your Income and Expenses

“YOLO” … “We might not get tomorrow” … “Forget about tomorrow because tonight we’re drinking from the bottle.”

These beautiful lyrics from modern day Shakespeares Drake, Pitbull and Calvin Harris reflect how a lot of people treat their finances when they are young.

The reason you may not want to save is not because you don’t make enough money or because you are stupid. It’s because you don’t see the big picture benefit that comes with saving money when you are STILL young.

If you start saving when you’re young greatly increases your financial freedom when you are older. Saving big numbers seems impossible, but over a period of many years it is much more doable. Many people underestimate what they can do over long periods of time. Saving early increases your ability to afford the bigger things in life that you may want when you are older. Saving small amounts when you are young allows your money to compound into bigger amounts over time, and it allows you to protect yourself against future job loss and illness.

You do not need to sacrifice your travels, or your fun. You just need to be wise about what you make and what you spend.

Here some Smart Moves for you if you are in your 20’s:

  • Have a budget. List all your expenses and see where you are putting your money. Remember Savings equals income minus- expenses. Organizing your expenses is worth the effort because it will help figure out where your cash is flowing.It’ll help you avoid overspending and debt while growing your savings.
  • The first thing you should do after receiving your pay check is transfer a target amount into your bank account, investing account or retirement account, depending on your goals. Majority of banks have a feature called Automatic Transfer or Automatic Savings Programs, where you can train your account to save money for you, by transferring money from your checking account to your bank account on a certain day every month (you should schedule this for the same day as you receive your salary). 
  • If you are already signed up for your company’s 401(k) account, you’re way ahead of your financial planning game. If your company offers a 401(k) account and you’re not signed up yet; run, jog, power walk – do whatever it takes and get this done today. Check if your company offers a company match. A company match means you can receive free money from your employer by contributing a specified percentage (usually between 3% to 6%) of your salary. Consider making contributions that will achieve the maximum company match. All contribution are tax deferred, meaning you only pay taxes on contributions and earnings when withdrawn.
  • Start investing at your earliest convenience and try putting away at least 5% of your salary as soon as you start working after college. The earlier you start investing, the earlier your money begins compounding. You should never spend habitually or unconsciously without understanding the security and future financial freedom that you may be giving up if you invested that money instead.
  • A car shouldn’t be an impulse buy at the cash register – especially if you are in your 20s, and it’s your first time. It can be overwhelming to add a set of wheels to the challenges of starting a career, making a home and building relationships. If you’re able to keep up with your savings and afford a car, you need to stay on top of car payments so it doesn’t impact your ability to get a mortgage later.
  • Building good credit doesn’t happen by accident. It’s the result of having credit accounts, such as a credit card or car loan, and managing them responsibly over time.

Finally, don’t forget to live a little. Money is supposed to be used, in part, for your enjoyment. There are many frugal travel ideas as well as low-cost entertainment options.  You want to learn how to use money so it benefits you now and in the future, rather than letting it make you a prisoner.

Saving money is about freedom, and doing it early in your 20’s will get you there that much quicker.

Mintco Financial Team of Independent Advisors are here to help you through all phases of your Life.

Contact us at info@mintcofinancial.com

Give us a call with your questions or want to set up a savings/investment account.

716 565 1300 or 813 964 7100

Start small and grow BIG!