Five tips for financial planning as a ’20 something’ in 2026
From investing to building an emergency fund, here are five tips for financial planning as a '20 something' as we ring in the new year.
As one approaches your mid- to late twenties, responsibilities increase and the pressure to be more financially intelligent grows.
Here are five tips on how to plan your finances for the new year.
BUILD AN EMERGENCY FUND
An emergency fund is crucial for financial stability.
At this age, you already have a figure in your head of how much your bills come to at the end of the month.
Your emergency fund goal amount should be to save up for 3-6 months of your monthly bills.
The best way to build an emergency fund is to open a 32-day account where you are unable to touch the money.
Another reason is that this money will keep earning interest.
LIVE BELOW YOUR MEANS
One of the key points of the book Rich Dad Poor Dad by Robert Kiyosaki is that you should be spending less than the amount of money coming in.
So, it is important that you are living below your means. This way you will be able to increase your savings.
PRIORITISE PAYING OFF DEBT
While a house and a car may take longer to pay off, credit cards, clothing accounts and other forms of credit are eating off your salary every month.
Therefore, you need to prioritise paying these off in order to be more financially free.
AUTOMATE YOUR MONEY, BEFORE YOU SPEND IT
Saving and investing is very important in your mid- to late twenties because life is becoming a lot more serious.
Another lesson from Rich Dad Poor Dad is to pay yourself first.
This means once you have your salary, before your bills or spending, you should put money into your savings and investments.
You can do this by setting up a debit order for some of your money to go into your saving and investment accounts.
START INVESTING EARLY
When you have bills to pay and living expenses to take care off, you tend to put off investing your money.
Investing is also complicated which doesn’t make things any easier.
However, starting small is still a good option. You can start with a tax-free savings account, ETF or savings account.
You could also look into stocks and bonds and keep learning until you are confident.
Meanwhile, take a look at car ownership costs that South Africans all too often forget to budget for, here.
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