Financial planning for people in their 20s

Financial planning for people in their 20s

How can you take on the responsibility of paying off your family dues? You certainly can, provided you take financial planning seriously from the very beginning. How you manage your finances also depends on how you have seen elders manage finances in your family. Maybe it seems that family dues can be managed well. However, there are times when you and your family members have been managing finances quite well when suddenly you face an unforeseen incident that causes your finances to go haywire.


Financial planning is important for fulfilling financial obligations when you meet such a crisis. When you are in your 20s, this is the time when you are trying to become financially independent and if you already have a job by now, you will very likely have a strong urge to buy those things that you have always wanted or you have seen your friend possessing one.
But if you can stay away from all the pomp and show, avoid flamboyance and take financial planning seriously, you will not only make your future secured but you will be in a better position to contribute to paying off your family dues if any.


Financial planning is no child’s play and the manner in which you handle your finances now will have a lasting effect on how you will be able to use your finances when you are old. Categorize your financial goals.


First concentrate on the short term goals for the next 5 to 6 years. During this period you can plan out your finances so that you can meet expenses for marriage, vacation, buying furniture or a car, investing cash in proper investment vehicles etc.
Next financial planning should be done for a period of 20 years thereafter. It could be funding education of your kids, taking out a mortgage etc. Once you are done with these major events of your life and that of your family, take care of your retirement needs.
Developing good financial habits should start young. This is the time when you can mould your attitude and concept about different things in life. While you are planning your finances, an important factor that shouldn’t be ignored at any point of time is building an emergency fund. It can be of immense help to you and your family. Whether you want to make debt payments to clear your family dues, pay for your utility bills, medical bills etc, if you know you have some cash to fall back upon, it can give you immense relief not just financially but mentally too.