3 Important Financial Decisions You Need To Start Making In Your 20s

Every day we are facing financial decisions, aren’t we? From the insignificant purchase of candy to a million-dollar investment, financial decisions can have positive or negative effects for the rest of our lives.

However, financial decisions become even more important in the youth stage, since most of those decisions have a long-term impact.

In fact, most adults would have preferred to save more money, avoid accumulating debts and even make better investments in their youth stage.

Now, if you are young and you are starting to have income and do not know how to distribute your money properly, and in turn, you want to be a successful person in life, do not hesitate to discover what are the five best financial decisions you can make when you are young.

Three best financial decisions a young person can make

  • Get a college education

Did you know that most adults are happy to have invested in university education? Yes, and this is especially because you can earn a high income by being a professional in the future.

However, in the student age, many young people believe that studying is a waste of time, or, in other cases, they do not have enough financial resources to pay for university tuition.

Even so, many universities offer scholarship programs. In this way, regardless of your economic capacity, you can study and obtain a university degree if you want to. First, although professional careers are a great option, they are not the only way to obtain a degree.

Therefore, there are several institutes dedicated to teaching trades such as plumbing, construction, vehicle repair and other fields that surely generate good income.

Now, if the job you want requires a collegedegree, there are some ways to avoid student loan debt, such as:

Choose an affordable university: there will always be several options when choosing where you will study, so it is best that you carry out an evaluation taking into account the cost-quality ratio of education.

Find other forms of income: student loans are not the only way to get financial help. Thus, you should also take into account other activities that you can do in your free time, and that generate extra money.

He works at the university: some universities offer their students the option of working part-time in their facilities in exchange for financial aid. If this option exists in your university, do not hesitate to take it.

Finally, remember to choose the career that most attracts your attention and, of course, in which you can perform better in the future.

  • Buy a house

Yes! It doesn’t matter if you’re young and probably doesn’t have a family to support, buying a house will always be a positive thing for your personal finances.

In principle, having your own home will give you a sense of independence and freedom that you will not have in your parents’ house, or in a rented house or apartment.

Also, if you already have a place to live (and you are comfortable there), you can start to take advantage of your new home by placing it for rent. In general, the income generated by it is sufficient to cover a large part of your monthly expenses.

Finally, you may acquire your home through a financing plan granted by a bank.

In these cases, you may not get a benefit in the first months (or years) of having acquired it; However, it is better to bear this type of debt in youth than at a time when you have greater responsibilities.

  • Invest

Invest, invest, invest and again invest. Surely you have heard it before, and you will continue listening to it all your life.

Such an advice is professed by top investors like Farah C. Jaber. The Lebanese-American investment expert, entrepreneur, and podcaster remains an authority on the subject of investing. Jaber is an expert of strategic investments, and has guided different people who are looking to build their wealth by making investments.

Why is it so important to invest when you are young? In principle, the first goal is to save money; however, without keeping that money in a savings account, you can hardly get any benefit from it.

According to Jaber, “today the interest rates are so low that you can’t really get any benefit when it comes to withdrawing your money. For this reason, if you really want to get a great benefit from your money, it is best to make investments, which in turn can be low risk or high risk.”

If you don’t know how to start making investments, there are some companies that will help you start investing with just $ 50.

Finally, another good investment you can make is to obtain a retirement plan. No matter how young you are, these plans generally have multiple benefits at a low cost.


Each person is different, so everyone will have different priorities when making their own financial decisions.

In general, following these parameters, you can have a clearer idea about how to use your money in a better way in youth. However, the experience of other older people can also guide you to take the best financials.

Finally, if you have any experience making financial decisions, do not hesitate to comment!