20 years old, currently between jobs, What are the "survival habits" I should start now to be financially safe later?
Posted by Separate_Speed346@reddit | AskUK | View on Reddit | 25 comments
I recently turned 20 and I’m feeling a bit overwhelmed. I live in South East London and right now my income is very inconsistent. I’m scared of falling into a cycle of being broke, and I want to start good habits now while I have almost nothing.
boba_toes@reddit
no credit cards, overdraft, buy now pay later (klarna etc) or payday loans ever - that will be a cycle you'll never get out of.
write out a budget of the essentials you need to survive and stick to it. you can still find ways to have fun with your friends within your means, and if your friends call you 'boring' or pressure you to live outside your means, find new friends.
watch The Financial Diet, which has a tonne of sensible, non hustle culture, class-aware financial advice.
Antique_Surprise_763@reddit
credit cards can be good. They are terrible for some people but if you can trust yourself don't write them off.
26Eddie26@reddit
100% agree. Especially good for building credit and good financial habits, but always pay it off straight away every month. I don't use debit card for anything, there is basically zero protection. Credit card is banks money and they will fight for it. I had a situation when my holiday was cancel (covid) and the cottage rental company didn't want to refund me. My credit card company refunded everything in seconds. Op is obviously thinking about his future and wanting to be responsible so why not try a credit card with a tiny limit.
Capt_Capital@reddit
most people will tell you budget, save & invest, and those are good habits to have but given you said your income is inconsistent I think thats the wrong advice for you right now.
your priority should be to add another stream of income though a side hustle. find something you're good at or enjoy and try to monetise it. platforms like Upwork are good for finding jobs you can do on the side to your main job.
when I was in uni I started writing articles on a niche topic that I had an interest in, despite not having any writing qualifications besides GCSE English. I found clients through Upwork and now have it as a steady stream of income alongside my 9-5.
after you've done that focus on saving & investing. r/UKPersonalFinance is a great sub to join and they have a great flowchart to follow which will help you manage your finances. if you're living at home/with parents make the most of not having to pay rent for yourself and maximise your savings and avoid spending money on dumb things you'll regret in 5 years.
WittyActuator3587@reddit
Do people pay you to write articles on that niche then?
Capt_Capital@reddit
yep, started off doing freelance work for clients I found on Upwork. wrote articles that were published on clients website & a bit of scriptwriting for YouTube/tiktok creators. pay ranged from $15-40 per article ranging from 1k - 3.5k words (back in 2021). the pay has increased since then with experience and moved to a long term client I work exclusively with now.
Boldboy72@reddit
first thing, if you can't pay for something outright with the cash you have, do not buy it. Don't get into debt for something you want but don't really need.
Living in an overdraft is tempting but you will find it very hard to get out of that debt.
Budget / budget / budget.
Get rid of any subscriptions you don't actually need (Netflix etc.)
Start thinking about your pension now. I didn't think about mine until my 40s and I'm going to be seriously poor at retirement.
Wise-Pay-8993@reddit
I agree with this especially the first part. I really wanted a new car it’s about £35k second hand. I was so tempted to finance it as it’s a car I always wanted. I said I’ll save for it first and then I’ll finance it use the cash elsewhere and a deposit and finance the car.
Once I had 35k saved up which took fucking ages I realized I didn’t really want the car that bad. As it puts in perspective how hard it is to earn 35k vs finance and pay a couple hundred quid a month which seems affordable
jeminar@reddit
Shit! You live in London and have money worries and you're thinking about a £35k car.
Buy everything as cheap as possible until you feel rich and financially secure
Thats_my_nirnroot@reddit
Don't be too proud to apply for job seekers allowance.
It's literally there to help take the edge off, financially, which yorke actively looking for a job.
As a ,30 something y/o with a degree in business studies.. working in a pretty average sales-related role..
I kinda wish I went into a trade instead... Like an electrician.or something lol
Mr_Bumcrest@reddit
Don't spend money you haven't got
tmr89@reddit
So, don’t get a mortgage?
Careless_Soup_109@reddit
Don't think that your job is going to provide you with all the skills you need to succeed.
Plenty of firms aren't forward thinking. You may need to push your employer, or offer to do, interesting things.
teadrinker_uk@reddit
Open an ISA even if you can only put in £1k a year. My first ISA was at 28 and I lost years of tax-free compounding by waiting. The habit matters more than the amount. Build an emergency fund, even £500. You don’t touch it unless it’s genuinely an emergency. Inconsistent income makes this more important, it’s the buffer that stops one bad month becoming three. Aldi or Tesco for most stuff, Waitrose only when there’s a reason. Pick one free hobby that becomes an anchor eg running, walking, library, whatever. Sounds soft but when income wobbles having something steady that costs nothing keeps you sane. Don’t tie your self-worth to your job. Easier said than done at 20 but worth practising now while the stakes are still low. Find friends who get it. Don’t waste energy explaining the basics of being broke in your 20s to people who’ve never been there.
ProfessorYaffle1@reddit
AS others have said - budget - both to make sure you know exactly what you are spending ommoney on, and to make sure you don't spend what you don't have.
IF you have any debts, it's likely to b isensible to try to pay them down.
Then start putting money into savings. Even a small amount helps - Lots of banks now let you have multiple different 'pots' so you can kep savigns and day to day money separate - in your position, a cash ISA is probably a good option, it lets you keep any savigns accessible for emergencies and you pay no tx on the interest.
When I was broke, I made a habit of moving money into savings as soon as I was paid , as otherwise, it's so easy to spend it becaue it is in your bank account . HAving some savigns then gives you a loittle bit of a cushion if you income is erratic, and makes it easier to avoid having to go into debt.
I don't know wht your income is, but check https://www.entitledto.co.uk/ to see whether you would be eligablefo any Universal Credit to top itup 0 UC is paid out based on your monthly incomeso if your income is variable, the mount you get can adjust to reflect that (and if you ar out of work, apply straight away - it can take about 6 weeeks to process an application but as I undrstand it is it then backdated to when you applied)
AnythingKey@reddit
If you want to buy a house at some point, put money into a lifetime isa and youll get a 25% (i think) bonus on it when buying your first home, or can take it when you're 60 years old.
moofacemoo@reddit
Learning how to cook cheap meals including batch cooking.
Sirlacker@reddit
If you can't afford to pay for it twice, you can't afford to pay for it once.
Everything you buy, save a house, a vehicle or emergency repairs shouldn't be draining your bank account. Just because you have £100 spare doesn't mean you should spend that £100.
ShingledPringle@reddit
I feel I can only be so helpful but:
Pension up and put away what money you can when you can.
One day something will happen, you will look at your savings and know you are okay.
Cheap foods are not bad foods, many of the best things are just as good cheap. Rices, pasta.
It can be easy to get in a cycle of "why shouldn't I?" when you need to be thinking "why should I?" It can save you money and having things sitting around you bought on a whim.
I know this one sounds obvious but people can be bad for it: when you are back in work and the money is coming in always always think bills and food shopping first. That should be untouchable funds.
JoeDaStudd@reddit
Any none essential purchase over x amount (could be £20-£50) has a cooling off period.\ If you still want it after 2-3 weeks then you can buy it.
When buying anything online always look for discount codes and cashback. A few £1 here and there all add up and you can normally cash out cashback for vouchers with an extra top-up.
It's also worth looking at your current account.\ Some reward accounts have a small fee, but you'll earn more then that just doing normal things.
For mobile phones just buy a mid range phone and a SIM only deal and keep it until you need a new phone. You can get rolling monthly SIM only deals for under £5.
Cal_PCGW@reddit
Back when I was a university, which was in the 80s so there was no web or smartphones to track stuff, I kept a little book where I wrote down everything I spent. I don't mean "crisps - 20p" but things like "Sainsbury's - £20" and so forth. That way I always knew how much money I had. I was one of the very few students who didn't run up a debt.
I am in my 50s now and, even with online banking, I still keep my own little accounts book.
mohawkal@reddit
Credit is a trap.
Budget and stick to it. If you can, include a pit in your budget for entertainment and enjoying yourself. That can help avoid over spending.
If you can, start a pension. I know it sounds crazy because retirement is so far off, but it will be a life saver. It's one thing I wish I'd done earlier.
ActionBirbie@reddit
Budget.
Sit down and work out your outgoings every month, to the pound. Never spend more than you have coming in. Sounds obvious, but make sure you do it and not just "estimate" it in your head. You will be surprised what things you spend on that you can cut back.
Jeoh@reddit
Go to r/UKPersonalFinance and follow the flowchart. Have a budget. Stick to the budget. Salary -> Savings -> Spending, not Salary -> Spending -> Savings, if you can.
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