It’s never too early to assess your finances or to create a plan that will stand you in good stead for great financial health in the years ahead. 

Whilst your twenties should be about enjoying life and figuring out your goals for the future, that doesn’t mean ignoring the grown-up stuff like saving. 

But it doesn’t have to be taxing either. We’ve put together some ways that you can easily start preparing for the future so you’re in the best possible financial position.  

Create a budget

Whatever you’re spending your cash on, create a budget. Assess your monthly incomings and outgoings and create lists of non-essential and essential spending. Decide on a budget for each month and look at ways you can cut back if you need to. This will get you used to manage your finances on a regular basis. 

Pay off debts 

It’s a good idea to try and clear any debts before trying to save on a large scale. This is especially important if you have any high-interest loans. Prioritize this type of debt so you’re not getting charged more in the long term. If you’re struggling with debts or paying bills, it’s vital to seek advice.

Build an emergency fund

It’s important to create a separate fund that can be used in emergencies, such as house or car repairs, or for special occasions including holidays or Christmas. Try and build up an emergency pot before saving for larger expenses such as a new car. 

Establishing a savings account means you can begin putting some aside for longer-term goals. Whether you want to save for a dream holiday or a house deposit, having a goal in mind will help motivate you to keep going. 

Pay off credit card balances in full every month

Whilst credit cards can be useful for certain payments, it’s good practice to get used to paying them off in full every month. This will help reduce your debt and make sure you’re not being charged high amounts of interest. 

Build your credit score  

Your twenties are a good time to begin building up your credit score, especially if you’re aiming to buy a home in the not-too-distant future. You can do this by ensuring you keep up with any credit repayments, joining the electoral register if you haven’t already, refraining from using an unauthorized overdraft, avoiding taking out multiple loans, and checking for any potential credit report errors. 

If you are aiming to become a homeowner, it’s worth looking into the government-backed schemes for first-time buyers, to see how you could benefit.