Written by attorney Timothy S. Kingcade

Tips to Becoming Financially Stable in Your 20s

Most young adults face financial stress after graduation. The job market continues to remain relatively stagnant and most graduates are drowning in insurmountable student loan debt. However, financial planners consider age 22 – 35 the best time to stabilize a financial future.

Below are 11 tips for young adults to achieve financial security:

  1. Analyze your finances: If you find yourself living paycheck-to-paycheck you need to track where your money is going. Find a balance that allows you to pay your bills but enjoy your life. The best way to do this is to thoroughly examine your expenses.

2.Make your own job: When the economy is suffering, young people might have more success in entrepreneurial endeavors rather than struggling to find a job. If you have a hobby or something you enjoy doing, try to utilize it in a way that will generate cash flow.

3.Examine your debt: Take a look at the interest rates on any loans you currently have. It will help you in the long run by paying down the loan with the highest interest rate.

  1. Rent vs. Buy: Consider your home a used asset as opposed to an investment. Also, consider that the housing market is still suffering. If you buy a home and need to relocate, ask yourself if you will be able to regain what you have invested. In places such as South Florida, costs associated with buying a home are so high renting might be the best option.

  2. Find a mentor: Research financial planning. Remember that your situation is different than everyone else’s. It would benefit you to speak with a financial planner who can give you personalized advice.

  3. Start saving: You can no longer depend on social security or retirement. Most people do not stay in the same job throughout their adult life. As a result, saving for retirement is now a necessity.

  4. Take care of risks: Planning for the future involves more than just financial stability. You should make a will, draw up financial and health directives and buy disability and rental insurance.

  5. Positive Relationships: It is always in your best interest to develop and maintain positive relationships. You never can never predict when, “who you know" will help you out down the road.

9.Investing: Sometimes for small investors, mutual funds are the best option because of lower overhead and decreased risk. You may also consider individual stocks, bonds and exchanged-traded funds because they are flexible and the fees are extremely low.

  1. Set up a 401(k): If you decide to set up a Roth 401(k) you will see tax-free growth and few restrictions if you need to borrow against it for a down payment on a home.

  2. Live frugally: If you are married, you should be saving part of one spouse’s salary. Try to do so before you have kids. Live beneath your means so that you are not dependent on two incomes, in case you do have children and one of you needs to stop working for a while.

Additional resources provided by the author

To read more on this story visit: If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. at

Free Q&A with lawyers in your area

Can’t find what you’re looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer