So you’re young and pretty much fancy free. The one thing that is starting to get a little bit annoying is the fact that you have to manage your money.
This will not go away as you start your twenties, and getting the right habits in place now will mean that you have an approach to your financial future that will ensure you always stay in the best possible position when it comes to money. Consider the following tips, which have been created especially for people who have just hit their twenties.
One of the most important things you can do as regards banking at your age is making the right start with your bank. Find out what fees they impose at all stages of your banking with them.
This means knowing exactly what they charge and when. If you do this, you can bank with confidence, knowing that the people who look after your money are easy to understand and won’t give you any nasty surprises down the line. It really makes a difference if you know the fees, so make this one of the very first things you do when you get that first ‘grown up’ account.
Remember also (because many people don’t even know this) that your purchasing details are stored by your bank. This means they know what you are buying and when. The upshot of this is that the bank is easily able to use this information to make decisions in the future about the interest rates they will charge on your account, and even the fees they may charge.
They actually do this, so it is worthwhile making as many purchases as you can with cash in your twenties, so you don’t end up paying huge amounts of interest on larger purchases in the future.
You should also consider opening up a savings account. So many people in their twenties don’t do this, but it could mean that you are one of the lucky few who have the deposit required for their flat or first home.
It really makes a huge difference if you put away just 10% of what you make every month into a savings account, and is well worth trying to do if you can manage it.
In these early stages of your financial life it is also a good idea to keep an eye on your bank account as much as you can. It is well worth, for example, checking your bank account daily.
This way you will know how the account flows and you will get an idea of the rhythm of the account every month. This makes you more aware of how you can spend money, and again it will limit the amount of nasty surprises you get.
Think about making the above ideas habits, and you should find that you move into your twenties with a confident approach to money and banking. It will stand you in good stead to get these things right now, and avoid problems in the future.