Financial goals for your 20s

Image of a young women working with a smile working for her financial goals in her 20s

March 26, 2025

5 min read

As you navigate life, your income, expenses, debts, and needs change. In early adulthood, you’ll likely have a lower income than you may enjoy later. You may also have fewer responsibilities. This is the perfect time to develop skills and habits that contribute to financial stability now and in the future.

Knowing what to expect can help you plan for each stage of life. In this article we’ll look at financial goals for your 20s.

Here’s what we’re going to cover:

Learn to budget
Pay down student loans
Set up an emergency fund
Start to save
Build credit
Bridge the gaps but manage your debt
Enjoy the ride
Oportun: Affordable lending options designed with you in mind

Key takeaways

In your 20s, you may find that most of your income goes to basic needs. Learning to budget now can help you keep your bills paid on time and build credit.
If you’ve taken student loans, choose a repayment plan that works for you now, and do your best to pay down the loans as your income grows.
Putting aside money for savings and an emergency fund is a good habit to develop now, even if you start small.
Start building credit while you’re young, and make responsible financial decisions to protect your credit score and your finances. This will open up doors of opportunity.

Learn to budget

A budget is a way to keep track of the money coming in and going out. Develop this habit early in your life.

To create a realistic budget, you’ll need to list your monthly income and write down everything you spend. You can use any method you feel comfortable with: a smartphone app, a spreadsheet, pen and paper, or tools provided by your bank or credit card issuer. However you do it, the key is to understand where your money is going and how your spending compares to your income. After several months you can decide if there are areas you need to adjust. Don’t forget to set aside money for savings and your emergency fund.

Early adulthood, while your finances are still relatively simple, is the perfect time to get in the habit of tracking expenses. At this stage you may find that most of your income goes to basic needs like housing, food, phone and internet service, and transportation. Sticking to a budget can help you keep all your bills paid on time while creating a solid financial basis for the future.

Pay down student loans

If you’ve taken out loans to help with the expense of going to college, you’re faced with paying back what you’ve borrowed.

Choosing a repayment plan: The repayment term you choose may depend what your monthly budget can afford. Calculate how much it will cost each month to pay off your student loans in five years. If that amount is too high, consider taking 10 years. Look for

a regular payment that you can handle comfortably. Keep in mind: a longer term will mean lower payments—but the overall cost will be higher since you’ll owe more interest over the life of the loan.

Paying student loans off: Your monthly budget may grow as you gain work experience, so consider putting more toward your loans than is required. The sooner you pay off the loans, the less in interest you’ll have to pay. Focus on the loan with the highest interest rate first (called the avalanche method).

In some situations, you may be eligible to have your federal student loan forgiven or adjusted. Check with your lender to see what programs are currently available.

Set up an emergency fund

An emergency fund is an important tool to help you cover unexpected costs. If you lose your job or have a car accident, you may need money for additional bills as well as day-to-day living.

Many financial planners recommend having three to six months of regular expenses set aside in your emergency fund. A high-yield savings account is a good place to keep your emergency fund so that the money can earn interest for you.

Get Set & Save to put your savings on autopilot. Our savings app can help you build an emergency fund, even on a limited income.

Start to save

In your 20s, you have a golden opportunity to begin saving money. Even the small amounts you put away now will accumulate over time. Consider automating your savings with direct transfers or using an app to personalize the process.

Set & Save is the savings app that does it for you. Start small, and you’ll be amazed at what you can save over time.

If you have extra income at this stage, you may want to meet with a financial advisor to discuss possible investments.

Build credit

You may find that landlords, potential employers, or utility companies want to check your credit when you apply to them. Having a high credit score can help you get approved, avoid paying deposits, and qualify for lower interest rates on loans and credit cards. This can make a big difference in your finances if you decide to buy a car or take out a mortgage.

Start building credit while you’re young. You can get started in a variety of ways, such as asking your landlord or utilities if they’ll report your payments to the bureaus. Credit building loans and credit cards are also good ways. The best way to establish good credit is to pay all your bills on time. A long credit history also counts in your favor, as it shows that you have a record of stability and reliability in your financial affairs.

Bridge the gaps but manage your debt

There may be times when your income doesn’t cover your expenses. You have several choices in this situation. You might borrow from friends or family, use a credit card, or take out a loan.

Weigh your options carefully and create a plan to bridge the income gap. Try to

keep your spending under control. You don’t want to get into a cycle of debt that you can’t break.

Enjoy the ride

Your 20s can be both challenging and exciting as you land your first job, take on adult responsibilities, and learn to navigate the world of finances. But there’s still room for fun! Enjoying special events can refresh you and contribute to your quality of life. Remember to balance your long-term and short-term goals as you make financial decisions.

Oportun: Affordable lending options designed with you in mind

The choices you make in early adulthood can create the foundation for financial stability throughout your life. Oportun is here to help you get started on the right path. Visit our homepage to learn about: