Your 20s will be thrilling as you embark on the beginnings of adulthood, but they can also be daunting as you navigate the much less desirable obligations of adulthood, such as bills and loans. It could also be the most important decade for your financial future. While your financial situation will differ from your friends’, there’s one thing all twentysomethings should have in common – the desire to establish good money habits, creating a firm foundation for their personal finances.

Your financial check-up

Just as you benefit from a health checkup, be sure to get a checkup for your finances to ensure that you’re making the most of your money and your financial decisions. Take out a credit report from one of the three major UK credit reference agencies to learn more about your finance.

Know and manage your Credit score

Know how to manage your credit score early will save you future heartache and stress that comes with it. Your future self will thank you when the time comes and you need to take out a loan, people with a high credit score are usually seen as a lower risk, and therefore more likely to be granted credit and given better rates.

Embrace a saving mindset

Without the proper precautions in place, your best laid budgeting plans can fall apart. The earlier in life you’re able to save money regularly, regardless of how small the amount is, the more beneficial it will be to you. Get into the habit of putting money aside by setting up a standing order into your savings account or ISA on the day that you get paid.

Find that balance

Finding a (re)payment plan that works for you is always important. Make sure that you take advantage of auto-payment options for bills to avoid late payments fees and save time. Why not download one of our recommended apps that make it incredibly easy to manage all of your accounts (and debts), whilst keeping tabs on whether you’re exceeding various areas of your budget.

Understanding good and bad debt

This is the beginning of debt management 101; in simple terms, a good debt is one that is a sensible investment such as a mortgage or investing in your own business. In your financial future, that should leave you better off in the long term, and therefore should not have a negative impact on your overall financial position. Bad debts are those that drain your wealth and are not affordable, offering no real prospect of paying for themselves in the future, such as a luxury item that you don’t need or can’t afford.

Understanding of financial products

Finance is a confusing world of complicated words, with lots of figures thrown in. But having a solid understanding of various financial products and terms can really help you make better decisions for your current situation and your future. There are plenty of sites online, such as Money Advice Service, Money Saving Expert and Advice UK, that have free information available to you.