In your 20s, you may feel like you have all the time in the world to manage your finances, but the truth is that the habits you form now will shape your financial future for years to come. Establishing a strong foundation early on can set you up for long-term financial success, helping you achieve milestones like homeownership, debt freedom, and perhaps even early retirement.

The good news is that developing a strong financial foundation doesn’t mean making huge sacrifices; small, consistent actions now can make a big difference in the future.

Here are three key habits you can adopt to secure your financial future.

1. Pay yourself first

One of the best books you can read about money, and one that can really make a difference if you read it in your 20s, is a timeless classic called The richest man in Babylon by George Clason. In the book, two friends Bansir and Kobbi have financial difficulties, while their childhood friend Arkad has become rich.

The two men seek out Arkad to ask him for his wisdom and secrets. Throughout the book, Arkad explains some fundamental principles for growing your wealth, such as living below your means, investing wisely, and most importantly “paying yourself first.” This means that before you spend money on anything else – whether it’s bills, rent or video games – you should dedicate 10% of your income to savings and investments.

Pay yourself 10% before you pay anyone else anything.

This habit not only creates discipline, but it shifts your mindset from spending to saving and investing, allowing you to gradually build your financial security over time. The sooner you adopt this practice, ideally in your 20s, the more time your money will have to grow thanks to compound interest and smart investments.

For example, if you save and invest $100 per month starting at age 25, with an annual return of 7%, you could have around $264,000 by age 65. Wow. By starting early, you give your money decades to grow.

2. Create a realistic budget

Budgeting may not seem exciting, and frankly, it isn’t. But that doesn’t mean it’s not important. It is. A good budget helps you live within your means and prioritize the financial goals and commitments that are most important to you. It is your plan how You I think you should spend better your money. That’s it.

See, it wasn’t that difficult, was it?

There are all kinds of budgeting apps you can use to create your own. Whichever one you choose, just make sure your budget prioritizes necessities like housing, transportation, and groceries, while allocating money for fun and entertainment, as well as your long-term goals, such as an emergency fund and investments.

The key is to create a budget that you can stick to, so that it feels less like a restriction and more like a roadmap to achieving financial stability.

3. Build and maintain good credit

As you get older, you’ll find that good credit opens the door to better financial opportunities, including lower interest rates on auto and home loans, as well as credit cards.

By using your cards and planning to pay them off each month, your credit score will increase quickly (note: the average credit score for someone in their 20s is 680). Avoid maxing out your credit limit and always make your payments on time.

Ready to find a great credit card to help you build your credit and earn rewards? Check out our list of the best credit cards.

If you develop these three easy, simple habits – paying yourself first, living within your means, and improving your credit score – you’ll create a strong financial foundation that you’ll be truly grateful for 10, 20, or 30 years from now. years.