Your 20s is an exciting time because this is the decade when you reach several milestones. First, you have graduated from university. Second, you now have, not just a job, but a career that pays a steady and generous salary. You can finally say that you are officially an adult now.

However, with adulthood comes responsibilities. You no longer can ask your parents to fund your lifestyle. The money you will useto pay for rent, groceries, and utility bills will come from your income.

Many young professionals make mistakes in their 20s that they end up regretting when they reached their 30s and beyond. It is their first time to manage their own finances, so they end up spending more money than they earn. As a result, they incur insurmountable debt.

You do not have to be a penny-pincher in order to ensure a comfortable future for yourself. You, however, should consider prioritizing some expenses. Here are a few examples.

Think About Your Future

When you are young, you feel indestructible. But, you will not be young and healthy forever.

Look into life insurance investment. A survey conducted in 2017 found that 65% of 18- to 29-year-olds do not have life insurance. About 71% of them do not believe they need it.

That is because, in your 20s, you probably do not have a spouse and children yet. However, if you plan to start a family one day, you should make the investment now.

Life insurance ensures that, when you pass, your family will not be scrounging for money. They are assured of an income even when you are not around anymore.

If you wait until you are married, expect to pay higher premiums. Most insurance providers charge less to young adults. As a general rule, the best time to get life insurance is as soon as possible.

You should also start saving money for your retirement fund. The earlier you start, the larger the sum that you will get so this is something that you should not ignore. Even if you cannot allocate a huge sum toward your retirement fund, you will reap huge rewards later in your life.

Pursue Further Education

You just graduated from university, should you go back?

Not everyone needs a master’s and a doctorate degree. While, in most fields, postgraduate education can help advance your career, there are other ways to pursue new skills and knowledge other than going back to school.

Join seminars, enroll in online classes, or read books by industry leaders. You should never stop learning.

Prioritize Experience Over Things

It will be tempting to buy whatever product is on-trend right now, but do not waste your money on things you do not need. They say that, when you are young, you have so much energy but little money.

Prioritize paying for experiences that you may not be able to do when you are older. Travel around the world. Go to concerts and music festivals every year. Climb a mountain. Sleep under the stars. These experiences will give you memories that will cherish forever.

Invest in Your Health

Your body can tolerate a diet of pizza and burgers now but, in the future, your bad eating habits may lead to a slew of health issues. Spend your income buying healthy ingredients and making food delicious at home.

You should also start exercising regularly. Buy good workout clothes and footwear or get a gym membership to motivate yourself.

Ultimately, how you will spend your money depends on you. If having all the trendy clothes and going clubbing every night is how you want to spend your 20s, that is okay too. However, you should think about and plan for your future every once in a while.