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With simple math, the right tools and advice, you can put your best foot forward when it comes to managing your finances like a boss in your 20s.

Finally, you have financial independence. You have the money to buy all the things you want which is amazing and exciting but with all that excitement and freedom comes some serious questions you should ask yourself when dealing with your finances, such as:

Should I be saving? Am I spending too much money every month? And am I budgeting correctly?

Creating a budget and setting goals for your finances will help you answer these questions.

Save first by paying yourself first

The importance of saving early is often overlooked. Paying yourself first means you are making saving a priority. The mistake many make is they spend first and save what’s left. Instead, you should save first and spend what’s left. To avoid spending first and saving later have a certain amount of your salary immediately deposited into a 32-day notice account the moment your salary is deposited into your bank account. As they say, the golden rule of saving is to save first and spend later.

I highly recommend a 32-day notice account. This savings account allows you to choose your notice period and the longer you save; the more interest you earn. It takes as little as R250 to open and you can immediately start saving from there. This is the perfect savings account for a young 20 something woman wanting to plan for her financial future.

Tracking your spending gives you more

Tracking your spending involves identifying possible spending issues and it helps you meet your financial objectives.

When you decide to take the initiative and track your spending it will show you exactly where your money is going and where you need to cut back. If you know where your money is going you will be able to eliminate the unnecessary spending that is possibly leaving you confused as to where your money has gone by the middle of the month.

At the end of every month review the expenses you tracked to compare what you spent versus what you planned to spend. If you have found yourself spending too much look for ways to cut back and if you have found yourself spending too little allocate more to savings. The benefits of tracking your spending will allow you to identify areas of improvement so you can spend less, save more, and plan for that amazing trip to Bali.

Start saving towards retirement early

Saving for retirement while in your 20s may not seem as urgent because it feels decades away but opening a retirement plan early is vital when it comes to compounding. The earlier you save towards your retirement the more compound interest your retirement savings will earn.

Another perk to saving early for retirement is that you can put less away in the beginning because compound interest is on your side and the benefit of compound interest is that it favors those that invest over a long period. I currently have a retirement plan with Old Mutual. If you are looking for a retirement plan that works for you and gives excellent service, I would highly recommend Old Mutual purely because I have never had an issue with them. They allow me to track my profile online which helps me monitor how much I have saved, my financial goals, and where I want my finances to be in the future.

Always try and pay cash

As they say, cash is king and it is. When you are young and trying to manage your finances I highly recommend sticking to cash. Avoid credit if you can. The mistake many make is that they get themselves into credit card or clothing account debt and are often left paying off those accounts when they could be saving that money. Adopt a rule of ‘’If I cannot pay for it with cash then I cannot have it now’’. Having this mindset will help you avoid debt while in your 20s and it will only aid you in the future when it comes to saving.

Find your balance

Finally, it’s essential to find a balance when it comes to saving, working, and enjoying your life.  It’s ok to treat yourself and you should never feel bad for treating yourself but remember to continue saving and always try your best to be smart with your money.

If you take the time to implement these quick and easy steps to your finances it will help you reach your financial goals and be financially successful.

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