Personal Finance Tips for 20s That My School Never Taught
If you told me in my 20s that personal finance was less about math, but more about psychology, I probably laughed — and then ignored you right away. After all, I thought I was doing “OK”: just graduated, had a job in the software industry, sometimes splurged on some gadgets or bubble tea. But the reality? Though I had a system, it turned out to be the wrong one for me.
This year, I entered my 30s.
I didn’t magically become a financial genius. Instead, I spent nearly 5 years learning and trying — through missed opportunities, stress, and more than one “how did I already spend my paycheck?” moment.
Looking back, I realise I made things way too complicated, which caused me to miss a few simple but life-changing principles. I’m not financially free yet, but now I’m finally building and growing my personal finances.
Here’s what I wish someone had handed me in my 20s.
First Principle—Budget 101: Spend Less Than You Earn (and Track It)
For years, I was obsessed with tracking every little detail — down to which credit card I used for each payment, every transfer between my banks, and even every time I withdrew cash and how much was left in my wallet. I thought this level of precision would give me control over my finances. Honestly, it just made things exhausting and gave me a headache.
Eventually, I realised that all this complexity was unnecessary. What truly matters is simple: how much did I spend this month, and how much did I earn? It doesn’t matter which bank, which card, or whether it was cash or digital — the only thing that counts is sticking to a budget and knowing my overall cash flow.
Any free budgeting app can do this. Set up expense and income categories, list a budget for each, and start recording.
By simplifying my tracking to just income and expenses, I freed up mental space and made budgeting way more sustainable. The details don’t matter nearly as much as the big picture.
Build an Emergency Fund Before Anything Else
I’m glad I knew how important an emergency fund is since I got my first job, and I made it my first financial goal after my first paycheck. As you know, life is always unpredictable. An Emergency fund with 6 months of expenses with term deposits actually saved my life when I got laid off during the pandemic.
Monthly Review Ritual
Let’s be real — we’re not always rational. I sometimes still will have a great meal with friends, suddenly buy some stuff in mobile games, or even buy a concert ticket and fly to Korea to see IVE. (Yes I’m a stan of IVE.) That’s why a simple monthly ritual keeps me from drifting too far.
Every month, I ask myself: What I spent last month? What I earned last month? How is my saving rate? Why did this result occur? Anything can be improved? These questions help me to spot patterns, like when a few “treat yourself” or “emotional spending” moments quietly nuke my savings.
But I don’t stop there. I also take stock of my assets and debts: How much do I have across all my bank accounts? What’s my credit card bill on each card? Am I carrying any credit card debt? By listing everything out, I get a real snapshot of my net worth — no more guessing, just facts.
This monthly review is not about guilt or perfection. It’s about staying aware, catching problems early, and giving me the chance to actually improve — one month at a time.
Don’t Just Save — Grow Your Money
I started investing once I had my emergency fund (almost) in place. But honestly, I used to think investing meant timing the market, chasing hot stocks, trading in and out frequently, or following whatever was hyped up — like NFTs in 2023. Looking back, I was not investing, but just gambling in disguise.
It took me a while — and a few painful lessons — to realise that investing is boring. REALLY BORING. For me, most of my portfolio is global index funds (like VT, VTI), a Taiwan index fund (because I’m Taiwanese), and bonds for stability. I keep a small slice of tech stock. That’s all.
Most of all, I buy and sleep. I’m doing long-term investing, letting compounding do the heavy lifting. I thought I could be a smart trader. Turns out, my portfolio performed better once I stopped chasing. Boring work. Who knew?
If you’re dealing with debts, definitely tackle that first before jumping into investing. I was fortunate enough not to have that hurdle myself, but I know it’s a big one for a lot of people in their 20s. Anyway, that’s just what finally worked for me — your mileage may vary.
Simplify Your Finances, Automate, and Save Time
After I started tracking my accounts, my credit card bills, and investments, I realised that simpler is better. I used to think I needed ten different bank accounts to chase the best deposit rates, or ten credit cards just to maximise every cashback deal. I’d even catch myself watching the markets, thinking I could outsmart the system with perfect timing, even with index funds.
However, this complexity just made my life harder, made me unwilling to track, and it definitely didn’t make me richer.
Now everything is simple.
I’ve trimmed down to a few accounts: one for investing and an emergency fund — money goes into it, but never leaves. Another for paying bills and short-term savings.
I’ve cancelled most of my cards, only a mileage card that sometimes lets me travel without paying for a flight ticket, and a backup card, just in case.
Most of my transfers are automated: when my salary hits, money for bills and investments moves to the right accounts. My credit card bills are auto-pai,d and recurring transfers drop into index funds every month. No decisions, no market timing, no stress.
The less I have to think about, the more likely I am to actually stick with my plan. A system that works for me will help me do these even if I’m busy.
Final Takeaway — Play the Long Game
Personal finance growth isn’t a math exam. It’s about psychology, it’s about building financial habits and systems that work with my messy, human, undisciplined side.
I tried a lot, experimented a lot, and even failed a lot in my 20s. If you’re in your 20s now, these are the necessary parts of your journey.
But here’s the best part:
It’s never too late, you've got time. Stop thinking, just do it! Every experience will shape and optimise your own system. Most importantly, keep your system working for you.
I know, it’s boring — but boring is what works.
💡 What about you? If you’re in your 20s (or looking back on them), what’s one personal finance lesson you wish you’d learned earlier?