How to: set yourself up financially in your 20s

How to: set yourself up financially in your 20s for your 30s

When you’re in your 20s, life can be all about living for the weekend and that next holiday overseas with your mates. When you reach the big 3-0, you don’t want to have the feeling that “I wish I thought about money a bit more back then!”

Unfortunately science has let us down, and there’s no time machines (or hover boards) yet, so if you’re still in your 20s, here are some things to think about. Put a few of these into practice and your future self will high five you in 10 years time.

Keeping up with the Joneses is expensive

Do you have friends that always have the latest, coolest stuff and toys? While they’re the envy of you and your mates, what they won’t tell you is they’re probably broke or in debt to bankroll their lifestyle. Living within your means (by keeping to a budget) is cool, because having multiple credit cards that are maxed out is not cool. Especially when those credit cards can carry about an interest rate of about 20%pa. Yikes.

Saving is cool

Putting away money each week might give you a bit less grown-up pocket money to play with, but it certainly isn’t without benefits. By having a history of regular savings, you’ve got the track record to show to a bank that you can make regular repayments, making you a much more attractive prospect for a home loan. Getting your savings history started sooner is much better than when you decide to get into the property market and need to start from scratch.


If your ego can stand it, rather than dropping $40,000 on a car, would a $20,000 car still get the job done? That extra $20,000 that you save would go nicely towards a house deposit.

Get a good credit history

There’s a saying that “having no credit is as bad as having bad credit”. Taking advantage of loans like personal and car loans can be great to get what you want, but use them wisely. Make your repayments on time, every time. Get ahead on repayments if you can. Consolidate any existing debts so you might pay a lower interest rate altogether. Your credit history can influence your borrowing power well into the future.

This information is general in nature. It does not take into account your personal needs and financial situation and you should consider what is appropriate for you. Please consider our Products and Services Conditions of Use and Financial Services Guide in deciding whether to acquire any Defence Bank product or service. These documents together with current interest rates and terms are available at
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