Adulting 101: Level Up Your Finances and Slay the Money Monster (It’s Not Actually a Dragon)

Listen up, young thrivers. We get it. It’s that time: after college but before real adulting, during which ramen counts as its own food group and “adulting” seems like the scariest verb around. But no fear, grasshopper! Building a strong financial foundation in your 20s isn’t about pinching pennies in sacrifice; it’s a way to manifest total control over your finances and bring into reality a concrete base for the big, incredible future into which you deserve to leap. And yeah, maybe go on a food binge with avocado toast, because who wouldn’t do that anyway?.

This will be the personal finance cheat sheet, jam-packed with tips and tricks to navigate through the world of money that is often very confusing. So, let’s break it into baby bits, because no one really likes information overload (well, except maybe Wikipedia, but that’s a whole other story).

Budgeting: Your Financial BFF

Think of a budget like your financial game plan. It tells your money where to go instead of wondering where the heck it all disappeared to after that epic weekend trip (we’ve all been there). There are fancy budgeting apps and spreadsheets galore, but let’s keep it simple. Here’s the 50/30/20 Rule:

• 50% Needs: Rent, groceries, utilities, that all-important phone plan (because let’s be real, surviving without it is rough).
• 30% Wants: That concert ticket, the new book you’ve been eyeing, a fancy coffee (#treatyourself).
• 20% Savings: This is your future self giving you a high five. Savings to fund your retirement, emergency funds, and savings to go for that dream vacation — all begin right here.

Pro Tip Alert! Keep track of how you’re spending your money for a month to see where it’s going. You may be knocking out some sneaky subscription fees or impulse buying that you can cut back on. Every little helps, right?

Building Your Credit: From Zero to Hero

You know, credit’s like some sort of black magic–either really good or really bad. The lowdown:

Credit Score: This three-digit number reflects your creditworthiness—basically telling lenders how likely you are to repay borrowed money.
Start Small: Establish a small credit line with a secured credit card. You basically deposit a security deposit and your credit limit is that amount. Use it responsibly, pay your bills on time, and watch your score climb!

Student Loan Debt: The Not-So-Friendly Roommate

Student loans. The burden some of us carry (we feel you!). Here are some strategies to manage that debt and eventually say “bye Felicia” to the loan monster:

• Income-Driven Repayment Plans: These adjust your monthly payments based on your income, making them more manageable.
• Refinance: Look at refinancing to possibly decrease your interest rate, which saves you cash in the long run.
• Make Extra Payments: Whenever you’ve got extra money, make extra payments on your loans. It might not seem very substantial at first, but believe me, even a little goes a long way. Saving for Retirement: It’s Never Too Early (Seriously!)

Retirement might feel like it’s a long way off, but, boy, it sure can catch up with you. The earlier you stash, the longer your money has to experience that magic of compound interest. Here are some options:

• Employer-Sponsored Plans: Many companies offer retirement plans like a 401(k) with matching contributions. That’s free money; so get it!
• IRAs: Individual Retirement Accounts come in different flavors (Traditional vs. Roth) with different tax benefits. Do some research to see which one fits your situation. Bonus Level: Adulting Money Hacks
• Embrace Free Entertainment: Parks, libraries, movie nights at home – there’s a ton of fun stuff to do that doesn’t break the bank.
• Cook More at Home: Eating out adds up quickly. Look into pocket-friendly recipes and bring out the inner chef in you. Bonus points for leftovers!
• Embrace the Side Hustle: Turn your hobbies into cash by freelancing, taking online gigs, or selling crafts. Every extra dollar helps!
• Automate Your Finances: Set up automatic transfers to your savings and retirement accounts. “Out of sight, out of mind” is good for saving too!

Remember: Your financial journey is uniquely yours. Don’t compare yourself to others and don’t be afraid to experiment and find what works for you. There will be potholes, but with a little knowledge and a lot of determination, you can conquer your finances and build a bright future (filled with avocado toast, guilt-free!).

Want to Deep Dive?

Great, now you’re just getting started! Here are a few more resources to keep you on your learning and growth track:

• Books: “I Will Teach You to Be Rich” by Ramit Sethi, “Broke Millennial” by Erin Lowry
• Websites: NerdWallet, The Motley Fool
• Podcasts: “Millennial Money”, “The Financial Diet”

Financial Jargon Demystified

Feeling overwhelmed by

• Compound Interest: Not only does your hard-earned money earn interest, but it also gets interest on already earned interest. Over time, the snowball effect can really build up your savings.
• Emergency Fund: A pile of money saved up for unexpected things—car repairs and medical bills. You should save 3-6 months of living expenses.
• Retirement Accounts: Special accounts to save money for when you retire with advantages as far as taxes go.

The Future is Bright (and Financially Secure!)

Put yourself ahead for a lifetime of success by taking charge of your money early on in your 20s. You might invest a little more up front, but in terms of returns, many are immeasurable: freedom from debt, the power to pursue your dreams, and financial security that will enable you to ride out most storms. This is a marathon, not a sprint. Celebrate your wins, big and small, and do not let the setbacks get you down. You’ve got this!

Bonus: Adulting Fails (We’ve All Been There)

• The “I Forgot I Had That Subscription” Trap: We have all been in this and have fallen prey to that sneaky subscription that silently drains the account. Keep reviewing the bank statements and cancel all the unused subscriptions.
• “Retail Therapy” Blues: Retail therapy feels good at purchase but leaves you with major buyer’s remorse. Before making an impulse purchase ask yourself, “Do I need this, or just want it?”
• Fear of Missing Out Frenzy: No one says you have to keep up with the Joneses’ lavish lifestyle. Stay true to the actions that will drive your financial goals and end up on the priorities that matter most.

Financial literacy is a superpower. Taking control over your money opens up your world to great opportunities. So, banish the fear, embrace the knowledge, and prepare to slay that darn money monster—you know, at least have a good talking to it. Just remember the power is in you and you are strong, so therefore you’re financially awesome! Now go forth and conquer those financial goals!