A bullet point guide on how to sort your finances in your 20s

Navigating your 20s can be a miasma of pain, highs, lows, glory and guts, and it's a period in which life throws some heavy hitters at you: housing, relationships, the first big-time job. And, with that, for most anyway, comes the ardour of managing your finances.

The latter is a tricky topic, and a complex one, too, and although we’re far from financial experts, we thought it might be beneficial to share our collective broad-stroke, gets-you-thinking advice on certain fiscal matters. Who knows, twenty-somethings, you might learn from our mistakes…

#1 Manage your weekly cashflow

We get it, your twenties are all about being fairly free spirited and vibrant with life. But, you really don’t want to splurge away everything you earn on spontaneous purchases and overpriced pints. Keep track of your outgoings with a card such as Monzo's, which shows real-time spending, allows you to put money into certain pots, and gives a breakdown of the areas in which you're spending (so you can re-adjust your habits, accordingly).

#2 Eat sensibly

Bulk food shopping is your best friend here, and big-batch cooking is your strongest monetary ally – for this, we'd dip into the European kitchen (aglio e olio; cassoulet; more economical cuts from your butchers, such as chuck and bone marrow). The Book of St John will help you get the most out of those unwarranted scraps.

#3 It’s the little things

Often, the greatest savings come from repeatedly reining in those small, everyday purchases. Do you really need to buy that film you’ve been dying to watch, if there’s the option to rent it? Do you really need a large flat white that you’ll only slurp a little bit of, when you could easily get a smaller option? There are often cheaper alternatives available – from food to electronics – even if only marginally, and it all adds up.

#4 Pay attention to your pension now

We get it. Pensions are dull. But, trust us: when you retire, you’ll be unbelievably glad that you took it seriously now. Speak to your office's HR or finance department to talk about what they offer.

#5 Do your research when it comes to ISAs

Don’t just get the first ISA you can find – because ‘everyone else has one’ – and then let it sit there empty. Do your research and work out which one is most suitable for you. That way, it’ll make the most of your earnings, current situation and life goals.

#6 There is nothing funny about overdrafts

If you’re in a position to avoid it, then you should. Be aware of when you’re straying precariously close to your overdraft, and start budgeting immediately (again, look into the Monzo). No-one needs any more unnecessary debt (thank you, Nick Clegg).

#7 Be realistic about where you can afford to rent

We’d all love to graduate from uni and move straight to Kensington, or Fulham, or Notting Hill, or the top of The Shard, or in a corner of King Charles's abode. But, if your budget is more suited to other, less expensive areas, make do. If you live outside your means, you might be living somewhere fabulous – a good thing, because chances are you won’t be able to afford to do anything other than stay in.

#8 Looking to buy? Start saving now

There’s so much talk about how millennials and Gen Z-ers won’t be able to buy until their latter years. But, frittering your money away because ‘I’ll never be able to buy a house, anyway’ is the wrong attitude, akin to that of not recycling because the world is on its way out. The more you save now, the closer you’ll get to that first set of keys. Baby steps.

#9 Don’t neglect that credit score

It’s so easy to dismiss it as ‘something to worry about in the future’ – but, like every film in The Expendables series, the future will swoop around sooner than you think. The better your credit score, the greater your chances of securing that mortgage.

#10 Live within your means, not the means of your friends

Some friends will always earn more than others. If your friends are earning more than you, try to resist keeping up with them in terms of eating out, holidays and all the other fun stuff. Live within your budget, not theirs. If they’re true friends, they won’t pressure you to spend money you don’t have. Which leads us to...

#11 Don’t be afraid of the ‘money conversation’

We’ve all been there: one friend says, "shall we all go in on [this ridiculously expensive birthday present] for our bud?" If you can’t afford it, say so. It doesn’t make you a bad friend, it makes you an honest one. And, your friends should respect you for it. Be open, simple and unhesitant about it.

#12 Monitor that bank account regularly

We’ve all been there: terrified to check our account for fear of the gut-punchingly small amount we may find. Fewer zeroes, perhaps a little minus sign creeping in, the 'pending' transactions leering over you like a bad smell. But, if you check it regularly, then you’re much less likely to have ‘the fear’. Keep monitoring it on a regular basis – perhaps every Thursday evening, before the big weekend out. That way, you shouldn’t have any nasty surprises.

#13 Keep every shred of paperwork

Bills, P45s, letters from your bank, details of your pension scheme – keep it all, like a hoarder with his trinkets from summer holidays gone. You never know when you might need them. You could even make a project out of it: get an oversized folder, splash out (the only time you’ll read that phrase in this article) on some plastic wallets, and maybe even some sub-dividers. Organisation will pay dividends in the future.

Seeking more monetary advice? Here’s a definitive guide to tipping…

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