Previously, I described in great detail my biggest financial mistakes that I made in my 20s. In this post, I am going to explain the counter argument — the smart Money moves I made in my 20s.

Millennials have it rough. Most of us graduated college at the time of the Great Recession. This timing really messed up our immediate job prospects out of college. In addition, we had to deal with soaring student debt. On top of that, there really isn’t a guide for Millennials about how to navigate finances. That’s part of the reason why this website exists.

Although I screwed up with my finances in my 20s (especially in my early 20s), I managed to get my act together. Before I hit 30, I accomplished several financial goals that I was really happy with.

Here are five really smart money decisions from my 20s that all young people should follow.

1. I Paid Off My Remaining Student Loans

It’s a shame that our society has burdened young people with incredible amounts of student debt. There are many young people today who are saddled with over $100,000 in loans. It could take some people well into their 40s or even 50s to pay that off. While I had some help to pay for college, I still had to take out some loans. I made it my priority to pay off my student loans before I hit 30. With no more monthly student loan payments, I was financially free to do more with my money. I could put my money to use and I could start investing, which bring me to point #2…

2. I Started To Save For Retirement

This was my proudest accomplishment in my 20s. Before I hit 30, I was able to start saving for retirement. Most people in their 20s are behind in their retirement savings. Many young people have nothing saved in retirement accounts. Although I started to save money in a 401(k), I also turned my attention to saving in an IRA.

3. I Set A Monthly Budget

Many people in their 20s struggle to transition from college into real world due to financial constraints. One of the major problems is that people sometimes waste a lot of money on frivolous things. There are cases where some young people are spending more than what they make every month. I wanted to avoid these financial perils, so I created a Monthly Budget. Although I occasionally go slightly over some of my monthly goals for certain categories, I do my best to maintain that monthly budget. Having a monthly budget in place provides the peace of mind to know that I am not overspending, and I am saving money every month as part of my smart Money Moves.

4. I Made Alternative Investments As One Of The Smart Money Moves

In addition to my retirement accounts, which I prioritized, I also dabbled in alternative investments. Some of that includes stocks that I inherited, but I also made my own investments in alternatives. I stayed away from commodities, such as gold, and I focused on investments for real estate and peer-to-peer. So far, I’ve netted some positive income from that. That additional income helps me meet my savings goals every month.

5. I Got A Job With A Higher Salary

No matter how much you avoid spending, you really need to increase your income in order to build your savings. In my early 20s, I made the mistake of accepting low-paying jobs for the sake of experience. By my late 20s, I sought out employment opportunities that paid significantly more than what I previously made. The result was that I increased my monthly income, I found my own place to live, and I am growing my savings every month. People in their 20s who are struggling financially should always try to find new employment or business opportunities to grow income.

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