Here’s some of the best financial advice Redditors have for people in their 20s.

Figuring out how to manage your personal finances is a process that takes time. In fact, many young people make financial mistakes or decisions they later regret.

You can avoid learning the hard way if you listen to the advice older and wiser colleagues give you. Especially if you’re still in your 20s and starting from a very clean slate.

To benefit from the collective wisdom of the internet, check out some of the best financial advice Reddit users have given to people in their 20s.

1. Spend less than you earn

When Reddit users ask people in their 20s to give advice, one piece of advice that consistently comes up has to do with spending. In particular, as one forum user put it, “Income should always be higher than expenses.”

Another netizen gave more specific advice, saying, “If you can’t pay in cash, you can’t afford to pay.”

This is great advice. Because when you’re young, especially when you’re just starting out in your career and earning good money for the first time, it’s tempting to pay for something you’ve dreamed of like a great dream. A car or a nice apartment. And of course, keeping up with your peers and paying for experiences may seem like something you have to do because, after all, you only live once (YOLO).

There is no problem with enjoying money in your 20s, don’t The older you get, the more likely you are to rack up credit card debt that will be harder to pay off and take on more obligations that could include marriage, home ownership, and children.

To set yourself up for long-term financial success and develop good habits that will last a lifetime, spend less than you earn by creating a budget and sticking to it. And save for the things you want to indulge in. Because you can enjoy it much more if you actually own it rather than borrowing money to pay for it.

2. Invest for retirement now

Retirement may seem like a distant future, but many Reddit users are urging young people in their 20s to start saving. now Because it will be much easier to succeed later.

“Open a Roth IRA right now and contribute as much as you can as soon as possible. It’s amazing how compound interest can grow,” one Reddit user said. The forum user went on to explain, “I never had that money and I don’t miss it because I have a house and I have some money stashed away.”

If you get into the habit of saving for retirement, you’ll find yourself doing the same things you always did instead of increasing other expenses to eat up that money. It also gives you a longer period of time to reinvest your profits and earn additional income, helping you build wealth easily.

To understand the importance of starting early, consider what would happen if you wanted to become a millionaire at age 65 and started investing at age 25. If you only save $188.28 per month and earn an average annual return of 10%, you have achieved your d goal. If you waited 10 years until age 35, you would need to save $506.60 per month by age 65. That’s much more difficult.

3. Build a good credit history

Finally, the last piece of advice has to do with having a good credit score, which is important. These sentiments were echoed by many respondents.

“People need to realize that having no credit is just as bad as bad credit, and in some cases worse than bad credit,” one user warned. Another suggested getting a credit card, using it wisely, and paying it off in full each month to build credit.

This advice is also important because so many people and companies – from your landlord to your utility provider to your cell phone company – all check your credit. And it’s easy advice to follow. You can get a good score by getting a credit card and setting up automatic payments to pay it in full and never use more than 30% of your available balance. Payment history and credit utilization are the two most important factors in the credit scoring formula.

Following this financial advice can go a long way in preparing you for the future you deserve. If you’re in your 20s, take the wisdom shared by Reddit users to heart. Because it can make a big difference in your financial life.

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