5 Money Moves to Make in Your 20s

Your 20s can be a time of great excitement and possibility, but it can also be a time of financial uncertainty. With the freedom to make your own choices and the weight of new responsibilities, it can be challenging to know where to start when it comes to managing your finances. However, with the right mindset, wisdom from the Bible, and a few strategic moves, you can set yourself up for financial success in your 20s and beyond. Here are 5 money moves to make in your 20s to set yourself up for future financial success.

1. Start with a budget, plan your generosity, and track your spending.

Creating a budget, planning your generosity, and tracking your spending is the first step towards financial stability. It helps you to understand where your money is going and make conscious decisions about your spending and living generously. In addition, it can help you to save money for things like emergencies, retirement, or a down payment on a house. Proverbs 21:5 says, "The plans of the diligent lead to profit as surely as haste leads to poverty." By taking the time to create a budget and sticking to it, you can avoid unnecessary expenses, work towards your financial goals, and live generously.

2. Build an emergency fund.

Emergencies can happen at any time, and having a financial cushion can help you to weather unexpected expenses. Experts recommend having at least three to six months' worth of living expenses saved in an emergency fund. Proverbs 6:6-8 says, "Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest." By being diligent and saving for emergencies, you can avoid falling into debt when unexpected expenses arise.

3. Start investing early and often.

Investing may seem like something only older, wealthier individuals do, but the truth is that anyone can start investing in their 20s. Even a small amount of money invested early can grow significantly over time thanks to the power of compounding interest. Proverbs 13:11 says, "Dishonest money dwindles away, but whoever gathers money little by little makes it grow."

If your employer offers a 401(k) match, make sure you contribute enough to take full advantage of it. If you don't have access to a 401(k) or IRA, talk to a Kingdom Advisor about your options. By starting to invest early and consistently, you can make your money work for you and build wealth over time.

4. Avoid debt.

Debt can be a major roadblock to financial success, especially if it is taken on for unnecessary expenses. While it may be tempting to take out loans or use credit cards to fund a lifestyle you can't afford, it's important to remember that debt comes with interest, which can add up quickly. Proverbs 22:7 says, "The rich rule over the poor, and the borrower is slave to the lender." By avoiding unnecessary debt and paying off any debt you do have as quickly as possible, you can avoid falling into financial slavery.

5. Live below your means.

Living below your means means spending less than you earn. While it may sound simple, it can be challenging in a culture that encourages us to spend more and more. However, living below your means can help you to avoid debt, build wealth, and achieve financial freedom. Proverbs 21:17 says, "Whoever loves pleasure will become poor; whoever loves wine and olive oil will never be rich." By prioritizing your financial goals over immediate pleasure, you can set yourself up for long-term financial success.

Your 20s can be a time of great financial opportunity if you take the right steps to manage your money. As Proverbs 3:9-10 says, "Honor Proverbs 3:9-10 "Honor the LORD with thy substance, and with the firstfruits of all thine increase: So shall thy barns be filled with plenty, and thy presses shall burst out with new wine." By creating a budget, building an emergency fund, starting to invest, avoiding debt, and living below your means, you can set yourself up for a future of financial stability and success.