Financially stable people in their 30s or 40s, what are some tips for early 20s people to handle finances?

Small amounts put away now are worth a lot later on. I hate “avacado toast” as a meme as much as anyone else, but it is very, very easy to get into a few small habits that cost a couple hundred a month.

Do cash as much as possible. Handing over an actual 20 for something is a different experience than spending 20 bucks on Amazon.

Cook and make coffee at home. Both are simple, better for you, and save money. If you have roommates, do bulk buys.

Cultivate some sort of app or something that lets you put aside small amounts of money every day. Every few months, dump it in a long term financial vehicle.

Yes the market sucks now but in 45 years it’ll either be much better or we’ll be swapping bullets for corn whiskey.

Cultivate cheap, simple hobbies that benefit you.

even more important than whatever money you put away right now will be cultivating these habits of saving and thrift for when you make more money.

as you start making more money, allow yourself to spend a little bit more and get nicer things, but also make sure you up the amount that you’re saving as much as possible.

For your immediate short term financial goals, focus on having six months safety net. Then think about financial vehicles, and remember that with a lot of stuff like iras and 401ks you can often take the money out to do a first-time home purchase without penalty.

Don’t buy shit you don’t need and can’t afford.

Maybe a bit crass but helpful.

Don’t use credits cards, but if you do, get one with good rewards and pay it off immediately after making a purchase

– Minimize monthly expenses. This is the biggest one. You don’t need 5 different streaming services, a $1000 cell phone, a $120 cable bill, amazon prime, lootcrate, a $25,000 new car, a large place to live, etc. Avoid subsciption services. All this stuff nickle and dimes your disposable income to death. Your goal should always be to be able to put aside atleast $300-$500 a month into a retirement account after everything. If you can’t do this, you need to cut expenses because you’re probably living beyond your means. Right now I pay utilities, rent, a car payment/car insurance, a $40 a month cell phone bill and a basic plan internet bill each month. That’s it, nothing else. Only recurring payments are essential things.

– NEVER EVER go into credit card debt. Pay it all off every month, don’t ever carry a balance – interest rates are insane. If you lack the discipline for a credit card, use debit for everything.

– open a retirement roth ira or other ira account ASAP and put aside all extra money and invest it. Don’t let it sit in a checking/savings account where it won’t grow.

Avoid debt whenever possible. Sometimes you can’t avoid it so when you do have to take out a loan pay it off as quickly as possible. It’s hard and you’ll have to make sacrifices, but it can make a huge difference in your 30’s and 40’s!

To the people saying avoid credit cards… That is a terrible idea.

I buy everything on credit cards, told the bank to set up a DD to clear the previous months debt every month.

Builds up your credit rating which could make all the difference when you are wanting a mortgage.

As long as you have some common sense and aren’t putting more on your credit card per month than you can afford to pay off after your bills and savings have gone out then you are winning.

Don’t be afraid of debt, the Western world is built on it, but be sensible with it and use it to your advantage to help your future self with a better credit eating.