The money advice we needed in our 20s (and still stand by today) / 76
When you’re in your early 20s, money can feel strangely contradictory. On one hand, retirement is decades away and everyone keeps telling you how young you are. On the other hand, you’re suddenly expected to know how taxes work, choose a health insurance plan, build credit, budget, save, invest… and somehow still afford groceries and have a social life.
On top of that, a lot of financial advice can feel disconnected from reality when you’re just trying to get your footing.
Luckily, most healthy financial habits don’t start with perfection or extreme discipline. They start with small, consistent choices that help your life feel calmer, more intentional, and more sustainable over time.
Whether you’re fresh out of college, navigating your first full-time job, or simply trying to feel more confident with money, these are the financial lessons we swear by for building a solid financial foundation — in your 20s or at any age.
Episode highlights
[02:00] Why tracking your spending is the foundation of intentional money habits
[03:30] The personal finance books that helped make money feel approachable
[05:00] How to spot “money leaks” and spend more intentionally
[06:30] Two simple questions to ask before impulsive purchases
[09:00] What lifestyle creep actually looks like in your 20s
[13:00] Why learning to cook is one of the best money-saving skills you can build
[15:00] The financial advantage of cheap housing situations early in adulthood
[17:00] How to prioritize experiences and travel intentionally
[19:30] Building credit responsibly and why starting early matters
[23:00] Emergency funds, future goals, and using extra money intentionally
[27:00] Why investing early matters more than investing perfectly
[32:30] Talking about money openly and taking imperfect action
Tracking your spending creates awareness, not restriction
One of the most underrated financial habits is simply knowing where your money is going.
Not because you need to judge every purchase or cut out everything fun, but because it’s incredibly hard to make intentional decisions when your finances feel vague and stressful all the time.
A lot of people assume budgeting means spreadsheets, strict rules, or tracking every latte with military precision. But realistically, the “best” budgeting method is just the one you’ll actually use consistently. For some people, that’s a budgeting app. For others, it’s pen and paper.
The important part is awareness.
Tracking your spending also helps you notice what are sometimes called “money leaks” — recurring expenses or impulse purchases that don’t actually add much value to your life. Maybe it’s…
A subscription you forgot you were paying for
Shopping out of boredom
Convenience spending that slowly became a habit
None of this requires shame. Most people have spending habits they aren’t fully aware of at first.
But when you start seeing where your money goes, you naturally start making more conscious and aligned decisions.
Small spending decisions matter more than dramatic overhauls
A lot of financial progress comes from learning how to pause before spending automatically.
That doesn’t mean never buying fun things or optimizing every purchase. It just means getting more intentional about the difference between something you genuinely value and something you’re buying because it’s on sale, trendy, or giving you a temporary dopamine hit.
Two simple questions can help:
Am I genuinely excited to use this immediately?
Would I still want this if it weren’t discounted?
Those questions sound small, but they can completely change how you shop.
Especially in your early 20s, it’s easy to fall into the mindset that buying something on sale automatically makes it a smart financial decision. (After all, you’re probably used to living on a student budget.) But if something sits unused in your closet or eventually gets donated, the discount didn’t actually save you money.
This is also where lifestyle creep starts to show up.
Lifestyle creep happens when your spending quietly increases every time your income grows. Maybe you get your first salaried job and immediately upgrade your apartment, car, wardrobe, or eating habits because it feels like what adults are “supposed” to do.
And to be clear, there’s nothing wrong with improving your quality of life. The issue is when your spending rises automatically without much thought, leaving you feeling stretched financially even as your income grows.
One helpful mindset shift is focusing on the “minimum viable thing” that genuinely meets your needs.
For example:
A reliable car instead of the most impressive one
An apartment that’s safe and functional over the HGTV-worthy showstopper
Spending more intentionally in the categories you actually care about instead of trying to upgrade everything at once
Over time, understanding your own values becomes one of the best protections against spending money simply because you feel like you should.
Practical life skills can save you more money than you think
Some of the most valuable financial habits have nothing to do with investing strategies or financial jargon.
They’re practical skills that give you flexibility.
Learning how to cook is a great example. Cooking at home consistently can dramatically reduce your expenses, especially during seasons when money feels tight. More importantly, it gives you options. If your finances suddenly become tight, being able to make inexpensive meals without feeling overwhelmed can create a huge amount of breathing room in your budget
And no, you do not need to become someone who meal preps perfectly every Sunday or makes elaborate homemade dinners every night.
Even learning a handful of simple, affordable meals can make a noticeable difference over time.
Investing early matters more than investing perfectly
A lot of people delay investing because they think they need to fully understand the stock market before they begin.
In reality, most beginner investors do not need a complicated strategy. They need a simple, clear starting point.
That’s why beginner-friendly personal finance books, podcasts, and educational resources can be so helpful early on. The earlier you get familiar with topics like investing, compound interest, and Roth IRAs, the sooner you can make these concepts work for you.
Additionally, one of the biggest advantages younger investors have is time.
Even relatively small amounts invested consistently over many years can grow significantly because of compound growth. That’s why starting early — even imperfectly — often matters far more than trying to optimize everything from the beginning.
The same goes for building credit responsibly, creating an emergency fund, and setting financial goals. You do not need to master every area of personal finance immediately (or ever, TBH).
You just need to start.
TL;DR
Tracking your spending helps you make intentional decisions instead of operating from constant money stress.
Asking thoughtful questions before buying something can reduce impulse spending dramatically.
Avoiding lifestyle creep early creates more financial flexibility later.
Practical skills like cooking can save more money than people realize.
Investing early matters more than investing perfectly — you do not need to know everything before you begin.
Resources:
Our 2 favorite personal finance/investing books: I Will Teach You to Be Rich by Ramit Sethi and The Simple Path to Wealth by JL Collins
Budgeting tool: YNAB (You Need a Budget)
Finance Girlies’ Investing Before You’re Ready workshop
Finance Girlies episode on bank accounts: Q&A: Choosing the right bank accounts / 3
Finance Girlies episode on travel: Points & miles 101 with Ross Alcorn: Turn your credit card rewards into free travel / 52
Finance Girlies episode with Arden Missal: She didn’t want to shrink her lifestyle — so she paid off $150K in debt, fast / 74
This content is for educational purposes only and is not personalized financial, tax, or legal advice.
