Hey there, fellow twenty-something! 👋 If you’re reading this, you’re likely looking to take charge of your finances and set yourself up for a future filled with financial freedom. And trust me, now is the best time to start!

In your 20s, you have a powerful tool at your disposal—time. The earlier you start building good financial habits, the more wealth you’ll accumulate in the long run. In fact, adopting the right financial habits now can be the difference between living paycheck to paycheck and achieving financial independence by your 40s.

I know, that might sound a little too good to be true, but it’s absolutely possible! Let’s dive into 10 financial habits you can adopt now to start building long-term wealth. And don't worry—I'll keep it real and relatable, with actionable steps you can follow!

1. Start Budgeting (Yes, It’s Not Just for ‘Old People’)

One of the best financial habits to start in your 20s is budgeting. You might think budgeting is something only older folks do, but trust me, it’s crucial. Without a budget, you’re essentially spending blind, and that’s not the way to build wealth.

How to Do It:

• Track your spending: Start by using a budgeting app (there are many free ones like Mint or YNaija Budget). You can also do it manually in a simple spreadsheet.
• Allocate your income: Use the 50/30/20 rule: 50% for needs (rent, food, utilities), 30% for wants (dining out, entertainment), and 20% for savings.
• Stay consistent: Set aside time every week or month to review your spending and adjust where necessary.

2. Build an Emergency Fund (Don’t Wait for a Crisis)

Life throws curveballs—whether it’s a sudden medical emergency or a job loss. The key to navigating these bumps in the road without derailing your financial goals is having an emergency fund.

How to Do It:

• Start small: Aim for 1 month’s living expenses first, then gradually build up to 3-6 months.
• Set up automatic transfers: Direct a portion of your income into a separate savings account as soon as you’re paid.

• Avoid touching it: Treat it as untouchable unless absolutely necessary.

   

Pro Tip: Many Nigerians use savings groups (like "Esusu" or "Ajo") to help build their emergency funds. It’s a great way to save consistently with a group, and it teaches discipline.

3. Pay Yourself First (Don’t Just Save What’s Left)

It’s easy to get caught up in the spending rush when you get paid, but to build long-term wealth, you have to pay yourself first. This means putting aside savings before spending on anything else.

How to Do It:

As soon as you receive your paycheck, immediately set aside a percentage for savings or investment.

Treat it like an expense you can’t avoid, just like rent or utility bills.

Start with 10% and gradually increase it as your income grows.

4. Start Investing Early (The Power of Compounding)

Ever heard the saying, "The best time to plant a tree was 20 years ago. The second-best time is today"? The same goes for investing! The earlier you invest, the more time your money has to grow, thanks to the magic of compound interest.

How to Do It:

Begin with low-risk options: Look into mutual funds or ETFs (Exchange-Traded Funds). They’re a great way to start without needing to know everything about the stock market.

Consider Nigerian investment platforms: Companies like Cowrywise or Risevest make it easy for Nigerians to invest in global markets or local assets with as little as ₦1,000.

Example: If you invest ₦5,000 a month at an average return of 10% annually, in 10 years, you could have over ₦1,000,000! The earlier you start, the bigger the pot.

5. Avoid Bad Debt (Credit Cards Are Not Free Money)

It's tempting to swipe that credit card, but bad debt—like high-interest credit card debt—can derail your financial future. Debt might seem like an easy way to get what you want now, but it will cost you more in the long run.

How to Do It:

• Pay off high-interest debt first: If you have any credit card debt or loans, focus on clearing them as soon as possible.

• Use debt wisely: If you must borrow, choose loans with lower interest rates, like student loans or car loans, and avoid unnecessary purchases.

   

6. Live Below Your Means (Your Lifestyle Doesn’t Have to Keep Up with the Joneses)

In your 20s, the temptation to flaunt a "lifestyle" can be strong, especially with social media showing everyone’s highlight reels. But the secret to long-term wealth is living below your means.

How to Do It:

• Prioritize saving over spending: It’s okay to treat yourself occasionally, but always choose saving and investing over unnecessary splurging.
• Avoid lifestyle inflation: As your income increases, resist the urge to upgrade your lifestyle too quickly. Focus on building wealth instead.

7. Educate Yourself (Financial Literacy is Key)

You don’t have to become a financial expert, but understanding the basics of personal finance can help you make smarter decisions. Financial literacy is empowering, and it’s never too early to start learning.

How to Do It:

• Read books and articles: Invest time in books like “Rich Dad Poor Dad” by Robert Kiyosaki or “The Richest Man in Babylon” by George S. Clason.
• Take online courses: Platforms like Coursera and Udemy offer free and affordable courses on personal finance and investing.

8. Diversify Your Income Streams (Don’t Rely on One Source)

Having one job is fine, but multiple income streams can make you less vulnerable to financial crises and help you build wealth faster.

How to Do It:

• Start a side hustle: Whether it's selling handmade jewelry, freelancing, or offering digital marketing services, find something that interests you.
• Invest in passive income: Think of rental income, stock dividends, or even royalties from creative work.

9. Automate Your Finances (Make It Easy to Save)

Saving and investing can be tedious if you have to do it manually every time. Automating your finances helps make it a seamless part of your routine.

How to Do It:

• Set up automatic transfers: Link your savings and investment accounts to your salary account and automate regular transfers.
• Automate bills: Ensure your utility and debt payments are automated so you never miss a due date.

10. Surround Yourself with Like-Minded People (Accountability Partners)

Building wealth isn’t easy, but it’s so much easier when you have a support system. Surround yourself with people who share similar financial goals.

How to Do It:

• Join communities: Connect with financial literacy groups on social media or in person.
• Find an accountability partner: Having a friend or family member to hold you accountable can help you stick to your financial goals.

Conclusion: Your Future Self Will Thank You

As a Nigerian in your 20s, the choices you make now can determine the life you’ll have in your 30s, 40s, and beyond. Building wealth isn’t a sprint, but a marathon. It takes time, discipline, and consistency. But, with these 10 financial habits, you can create a solid foundation for a prosperous future.

“The journey of a thousand miles begins with one step.” — Lao Tzu. Start with just one of these habits today, and before you know it, you'll be on your way to long-term wealth.

Let’s Talk About It!

What financial habit are you going to start adopting today? Drop a comment below and let me know how you're planning to build your wealth in your 20s! I’d love to hear your thoughts and tips. 😊