5 Better Money Habits to Adopt in Your Twenties

Better money habits, everybody wants them, right? Your twenties are a crucial time when it comes to finances. Many people go into debt in their twenties because of student loans or credit card debt. But finances can be daunting – so many aspects are tough to understand.

Thankfully, you don’t have to understand each facet to be successful with money. By adopting a few habits and learning some fundamental principles, you can set yourself up well for financial success.

5 Tips for Better Money Habits

Here are my five top tips for better money habits in your twenties to help set yourself up for a better money future.

better money habits
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Now if you have already enjoyed your twenties and have moved into the later decades of your life, there is no reason that you can’t also use these habits to change your money outcomes.

As you know I often say that it is never too late to start, and this advice applies to these habits as well. Success with money comes from doing simple things consistently.

So let’s get into the 5 better money habits…

1. Build Discipline

Open up any other article on the internet about managing money, and you’ll find a bit about budgeting. Budgeting isn’t a groundbreaking idea. You’ve likely heard this advice. But if it’s so simple, why do so many people outspend their budgets and wind up in debt? 

Because following through with a budget requires discipline – something many of us lack in our twenties.

Becoming disciplined is one of the best things you can do for your financial future. Easier said than done, but well worth it. Start building habits, sticking to them, never breaking promises to yourself, and doing things even when they’re hard. 

The best way to develop discipline with money is NOT to try to stick to a budget, as you know I think budgets suck, they don’t work no matter what age you are. It’s why so many people struggle with money, because the advice sucks.

The answer to creating discipline is a MONEY PLAN. You can access my money planner and the training for how to use it here, it’s the secret to my success. In terms of better money habits, this is the number one priority.

2. Spend Wisely

You don’t have to spend frugally, but you should learn to spend wisely. If you’ve just started your first career, you’re likely seeing real money for the first time. Resist the urge to blow it quickly. Your future self will thank you. 

spending habits

Not only will you be able to start saving (more on this later), but the way you spend now will impact the way you spend later. Splurge on items that improve the quality of your life and save you time. Fight the temptation to blow money on short-lived thrills and things you don’t genuinely need.

3. Educate Yourself 

The most significant investment you can make in your twenties (or any decade for that matter) doesn’t involve stock or mutual funds. Invest in yourself.

Learning how money works will change the way you view it, earn it, and spend it. Educating yourself will set you up for success in a way little else will. 

Learn the basics of assets, liabilities, cash flow, taxes, and investing. You don’t have to become an expert. Even the basics will pay off.

4. Maximize Your Time

Time is money. And sometimes it’s worth paying for. For example, paying for grocery delivery could be worth it if it means you can spend more time making money (check out https://instacart.com). 

Or, if starting a business, you may save a lot of time and hassle by using a virtual mailbox (check out http://physicaladdress.com) instead of buying or leasing a physical space.

While these are examples of ways to save time, the key is to focus your attention on how you can increase you income. The best way to think about this tip is to calculate what you want to be paid per hour.

You might be earning $30 per hour in a job, but you have aspirations to be earning $100 per hour. To achieve this milestone, you need to be doing the things that generate $100 per hour, and not the things that earn $20 per hour.

What that means is focus your attention on the actions that get you to the $100 per hour income and outsource or delegate the things that won’t. Sounds simple, but it takes some effort, but it is how the wealthy have managed to achieve their big wins. They realise we all have the same 24 hours a day, they just spend their time doing what earns them the big money and let others do the things that don’t.

Learn this skill at any age and you will be well on your way to success with money and life.

5. Start Saving

Deciding to save money can be challenging, but your future self will thank you. Sometimes the toughest part is getting started.


A lot of financial pages will suggest you save say 10% of your income each month, and consider building up from there. While this is solid advice, it doesn’t consider your circumstances, and if you think 10% is too much, you just overlook the suggestion and forget about it.

The key is to calculate how much you can put away by completing a plan for your money. I’ve already mentioned how to get my money planner earlier, this is the tool that will show you exactly how much you can pay yourself. This is the key to success with money, paying yourself first, before you spend on all the other stuff.

Paying yourself first is the magic sauce, but knowing how to do it is the key to success.

So grab your copy of my money planner and start paying yourself first and securing your financial future.


These better money habits will impact the way you handle money for the rest of your life. Do the hard work now, so that it will be effortless in the future.

And if you are not in your twenties, start these habits now. While you don’t have the same freedoms of your twenties, you still have time to change your financial future.

It’s never too late to start and it’s never too late to take control of your money.

Let me know what you will do differently from this week in the comments.