Money moves to make in your 20s that your future self will thank you for

Your 20s can feel like a time of financial chaos, juggling entry-level salaries, student debt, rent, and social pressures. The reality, however, is that the financial foundations you lay now will determine the level of freedom and security you’ll have later.  

The habits and decisions people make in their 20s can shape their financial trajectory for life. It ultimately comes down to three key financial habits.

The first and arguably most important is living below your means. If your expenses are consistently higher than your monthly earnings, you’re in for major trouble down the line.  

Once you’ve got the first habit down, you can focus on saving before spending. By setting up automatic transfers to a tax-free savings account or retirement fund, you can ensure that even small amounts grow consistently.

The third non-negotiable habit, according to the sisters, is budgeting. Having a budget, whether through a spreadsheet or an app, helps you see where your money is going. When you can visualise your spending, you can make intentional financial choices.

Get a financial safety net in place 

A solid emergency fund is the basis of financial security. Before even thinking about investments and retirement, build up an emergency fund that can act as a buffer for any unexpected expenses that may arise. Ideally, you should aim to cover three to six months’ worth of essential living expenses. 

This can feel overwhelming when you’re earning an entry-level salary or repaying student loans. Start small with consistent monthly contributions, and top it up with bonuses, salary increases, or birthday cash. Keeping it in a separate high-yield savings account means your money grows while staying accessible. 

Stay on top of your credit

Understanding how credit works is vital in your 20s, as it affects everything from renting a flat to qualifying for a loan. To build a good credit profile, pay your bills on time, every time. One missed payment can hurt your score for years.

Starting with a manageable account, like a credit card or a store account. Use it responsibly and pay it off in full each month. But don’t max it out and avoid applying for multiple accounts at once, as that can signal financial stress to lenders.

Managing debt wisely is just as important as building savings. It’s not an either/or scenario. Pay the required minimum on any credit to stay in good standing, while also building your emergency fund steadily over time.

Small steps that pay off later  

Some of the smartest financial moves you can make in your 20s don’t directly involve money. Now is the time to invest in yourself. The earlier you upskill yourself, the greater the potential return through higher earnings over your lifetime.

Use any spare time to experiment with side hustles. You have flexibility and fewer commitments now, so it’s the perfect time to test out income ideas that could grow over time.

And don’t overlook financial literacy. Learning how to manage your money is one of the best investments you can make. The knowledge you build now will serve you for decades.

Never underestimate the power of time. Time is on your side, but this won’t always be the case. So, start where you are, with what you have. Your future self will thank you for it.

* Bianca and Annika Strydom are PSG’s future females in finance.

PERSONAL FINANCE