Your 20s Financial Planning Checklist

Action Steps:

• Start with $1,000 as your initial emergency fund
• Set up automatic transfers of $100-200 per paycheck
• Keep it in a separate high-yield savings account (not checking)

Action Steps:

• List all loans with balances, interest rates, and minimum payments
• Choose debt avalanche (highest interest first) or snowball (smallest balance first)
• Consider refinancing if you have good credit (5%+ rate difference)

Action Steps:

• Contribute enough to get full employer 401(k) match (free money!)
• Open a Roth IRA and contribute $6,500/year (2024 limit)
• Choose low-cost index funds (target-date funds are great for beginners)

Action Steps:

• Get a credit card and pay the FULL balance every month (no exceptions)
• Keep credit utilization under 30% (ideally under 10%)
• Set up autopay to never miss a payment (payment history is 35% of score)
• Check your credit report annually at AnnualCreditReport.com (free)

Action Steps:

• Use the 50/30/20 rule: 50% needs, 30% wants, 20% savings
• Download a budgeting app (Mint, YNAB, EveryDollar)
• Review spending monthly and adjust categories as needed

Action Steps:

• Get health insurance (employer plan, parent's plan until 26, or marketplace)
• Maintain auto insurance with adequate liability coverage
• Consider renter's insurance (costs ~$15/month, protects your belongings)
• Get term life insurance if anyone depends on your income

Action Steps:

• Read personal finance books (Rich Dad Poor Dad, The Simple Path to Wealth)
• Follow financial experts on social media and podcasts
• Schedule a consultation with a financial advisor to create a personalized plan