I’m fortunate enough that my mum taught me the value of saving money and because of that, I had no big debts in my twenties other than my mortgage and student loan. That’s changed somewhat after quite an expensive 2022 whereby we got married and then experienced quite a few setbacks at the tail end of that year.
However, I’m pretty proud of myself that I’ve not gotten myself into any unnecessary debt. It’s something that can happen easily, especially for those who don’t know how to budget their money and utilise credit cards or buy later schemes to spend more than they can afford. If you’re struggling in your twenties to manage your money and find your way out of debt, then this guide should certainly help.
From using credit cards smartly to cutting down on luxuries, here are some tips for debt management in your twenties – a prime time for spending money foolishly and then regretting it later on in life.
*This is a collaborative post. Image Source
*This is a collaborative post. Don’t spend like there’s no tomorrow – tomorrow almost always comes around
The attitude of spending like there’s no tomorrow is silly. Why? Well because tomorrow almost always comes around. Yes, no one knows when they may take their last breath but unless you’re really unlucky, your tomorrows will arrive in abundance. That’s not great if you’re spending a lot of money every day.
It’s important to adjust your mindset and think that although tomorrow is never guaranteed, it’s good to save for tomorrow too.
Strategise a plan for clearing the debt
In order to help clear the debt that’s accrued it’s important to strategise a plan. How are you going to effectively clear the debt that has built up without building up any more debt in the process? From consolidating debt into one manageable place to cut down monthly costs to make for more money dedicated to clearing the debt.
This plan is going to provide you with some direction, instead of just paying off a bit here and there over time. For consolidating your debt, it’s worth borrowing a lump sum of money to pay it all off. If you need money, there are plenty of lenders out there who’ll be able to help.
Learn to budget monthly
Learning how to budget is a life skill that you should have and can benefit greatly from. I know that when I have children, that’s a life lesson I’m going to pass on. Just like my mum taught me and my siblings to do, my children will hopefully save some of their birthday money into savings. It’s something that when it’s taught from a young age, will certainly translate positively into their adulthood.
When you find yourself in debt, it’s important to take control of your monthly outgoings. Understand where there are outgoings that you can either reduce or cut completely. For the sake of getting out of your debt, you can find alternative methods instead of paying your monthly gym membership.
Build an emergency fund
To help with situations that can put you into debt in the first place, consider building an emergency fund. An emergency fund is great in those scenarios where you need to fork out money for a problem that is perhaps costing more than you can afford from your monthly pay packets. These include things like the boiler breaking down and needing a replacement. White goods like your dishwasher or washing machine finally caving in.
Whether you’ve got £100 in an emergency fund, £500, £1,000 or £5,000 – any form of an emergency fund is going to be helpful for keeping your head above water.
Find side hustles for extra cash
To help clear the debt faster, there are plenty of side hustles you can take on in order to earn some extra money. From helping out with odd jobs at other people’s homes to filling out surveys online. Take full advantage of what the internet can offer you too because there are plenty of opportunities to make use of in order to earn extra funds online. With this blog, for example, I started it coming out of university and sustained it during a full-time job. It meant sacrificing a lot of hours and free time spent with family or friends, but it paid off eventually.
If you’re looking to clear your debt this year successfully, then use these tips to help take control of your money situation. It may take you six months, two years or more but don’t give up. A debt-free life is possible and can be achieved with persistence!
*Disclaimer – This is a collaborative post. All words are my own.
