How to manage your personal finances in your mid-20’s!

October 31, 2020

Hey guys, we all know managing your personal finances can be a little difficult and it can also become a little too overwhelming if you’re not sure where to start (I’ve been there so I feel your struggles).

So, if you’re in your mid-20’s and you’ve finished university or are working your way up in your career then let’s talk about how to manage your personal finances in a little more detail. *Continue reading*.

But first a little background on my financial situation:

I had my first proper job when I was 20 years old (before then I did odd jobs temp jobs) when I was at University. I wish I could sit here and tell you I was earning good money and budgeting like a pro, but that is far from the truth.

Fast forward to today, I am still not where I want to be financially but I have come along way since 20-year-old me got her first pay-check- I budget so much better and I have a savings and an investment account (for low-risk investments). 

Now on to you- to find financial freedom (something I am still looking for), you need a source (ideally multiple sources) of income and this includes a monthly salary from a job. 

I am fully aware it isn’t easy finding a job, especially in the current climate, let alone one that you will love waking up in the early hours of the morning to go to work or work from home, but you need to start somewhere and my advice is- create a LinkedIn account.

Indeed, Monster Jobs, Reed, and CV-Library are great sites for you to join to look for a job. All you need to do is simply upload your CV and they will match open positions to you!

(There are also so many graduate schemes that you can join if you are a recent graduate. So please do make the most of this option.)  

Next, please ensure you’re also utilising your contacts and friends that are employed, maybe they can put in a word for you! I always recommend people to recruiters and hiring managers I know. Networking is essential for both personal and professional growth! (I network for a living as a part of my role). 

Once you’ve done the steps above, you need to set up and organise your bank accounts

Ideally, you should set up three different accounts (either with the same Bank or three different Banks- whatever works for you): 

Having three different types of accounts will allow you to be a lot more organised and most importantly, in control of your money so you are well aware of know what is coming out and coming into each account.

It may sound confusing but trust me, it’s better to do it this way so you can visually see your expenses, outgoings, short-term, and long-term savings. 

Moving on, you need to manage your cash flow so that you need to create a budget (I mentioned the importance of it in my last post). And you can do this however way you want. I did mine via an excel spreadsheet. I prefer using a spreadsheet but there are also apps you can use.

YouTuber Patricia bright had one you can purchase for £1.99 but it’s no longer available, however, if you join her mailing list, she said she has something better in store?

She also has a video on budgeting which I found useful, see below:
In addition to the above, you need to make a note of the following:

Your necessities and desires and keep this in mind each time you make your budgets. 

This is essential to those who are renting, have a car to pay for, utility bills, household goods, food, gym memberships, families to look after, etc as these are your priorities, so YOU need to ensure YOU have the money for these things. 

Also, you should ideally have enough money in your savings or ISA that will be able to live 6 months without working or receiving an income if ever it came to that. For that, I advise you out away 1K a month or a min of 500 a month if that’s more realistic for you.

However, I understand it may not be even possible to put away 500 a month in this current climate, but putting away something, even 100 if you can, is better than not putting away anything.

An important note: for my fellow millennials, there is no need for you to spend MORE money than you earn or have to maintain a false image of yourself to keep up with society’s demands and the filtered lives on social media. 

Be smart with your money and live within your means. Remember Instagram is NOT real life. Just because you see someone with designer clothes, shoes, etc with expensive cars, on luxurious holidays, etc. it does not mean they are wealthy, living their best lives.

It could mean the clothes are rented (you can do this- check out Selfridges Rent Your Wardrobe for more info- an avenue I haven’t explored but I do think it’s a great idea for sustainability), the car bought on finance and the holiday paid for with borrowed money!

Of course, there are some people, who do have the money to spend on designers, cars, and so forth but that doesn’t mean your life is lacking just because you don’t have what they want. 

So please (as hard as it is) do not compare your life to someone else’s- the grass isn’t greener on the other side, it’s green where you water it. 

On another note, if you have a skill, a talent, an interest – monetise it even if it is in an over-saturated field where competition is sky-high. Why? Because NO ONE can do what you can in the way you can!

There is only one of YOU even if there is 10000+ MUA’s in your field of choice. I know so many people who have a passion and talent for baking for example who turned their talents into their brands. 

Lastly, use your credit card and make small necessary purchases which you KNOW for sure you can afford to pay back before the due date. This is something my aunt taught me when I was growing up which increases your credit score. So I did it for years and I still do it. 

Note: your credit score is what will help you secure personal loans and mortgages if ever you wanted to buy a house. 

Final thoughts, here are some books that I’ve read/was recommended that may help you understand money and managing your finances better:

There are plenty of FREE resources, videos, etc on this subject so hope you find something that works for you.

I hope this post helps you as I hope it will always be a reminder for my younger siblings to refer back to-you are welcome to do the same!

Until next time…

With love,


YouTube & Podcast - Coming soon...