Your twenties are an exciting time. But it is also the time to make wise financial decisions that will establish spending and saving habits for the future.

When you are in your twenties, managing your finances is overwhelming. Between heavy debts, daily expenses and long term goals, it can be hard to make a feasible financial plan. But the sooner you start building good habits, the better your long-term success. Milledgeville State Bank has a few rules you should follow throughout your twenties to take control of your finances.

Establish your budget – when you start a new job, likely with a new salary, you need to decide how to wisely divide your income. If you don’t set up a budget, you are more likely to overspend on unnecessary things while undercutting your savings. Differentiating between needs and wants is a good place to start.

Make a plan – Debt is common for young adults. But letting that debt hang over your head for too long can set you back for years to come. Skimping on loan payments can haunt you in the form of higher interest payments and lower credit scores in the future.

Start an emergency fund – Stash away enough to pay three to six months of expenses as a precaution. Insurance alone won’t cover every unforeseen problem in your future. Try to contribute 10 percent of each paycheck to your emergency fund until you reach your goal.

Leave the Mom and Dad Bank – The goal of your twenties is to become self-sufficient. Financial independence starts with a job which will lead to a separate car, phone plan, home, insurance, etc. This is easier said than done! If you need financial help from your parents, approach them maturely and responsibly.

Picking up good financial habits in your twenties is a good first step towards your long-term goals. If you are embarking on a new phase of life, talk to the experts at Milledgeville State Bank. We can help you figure out how to budget and save to pay off debt, start saving and more. Stop by today!