Important Purchases to Make in your 20s

Today’s blog post is a little bit different from my usual style and travel posts in that I’m dishing out some advice on what millennials today should invest in as they embark on their post-college life. Have you ever had one of those moments where you’ve said to yourself, “I wish I had known this when I was in my 20s”? Or have you ever regretted not doing something, going somewhere, or buying something that you know you could have used when you were in your 20s? Well, I’ve put together a couple of lists for those millennials who are heading into today’s workforce that details some important purchases to make in your 20s as well as some other bits of advice that I wish I had followed when I was in my 20s.

Even now I have the occasional “coulda-woulda-shoulda” moment, but as I look back on my college years and my early 20s, I can say that I have very few regrets. So what advice would I, as a 40-something, give my 20-something self? One thing if for certain, I would definitely have socked away at least 10% from each paycheck into a savings account for a rainy day.

A lot of young professionals and recent college graduates overlook certain items that they should invest in when they are in their 20s, like a good suit {you know, for job interviews} or a reliable laptop {cheap doesn’t always mean reliable}, and a hard drive {for extra storage}. You could also invest in large ticket items, like a new car or a house, but these items may be something you need to plan and save for so you don’t find yourself drowning in debt before you’re 30.

Below I’ve listed several important purchases that individuals need to plan for and make in their 20s. Heck, I wish I had invested in a few of these things in my early 20s.

1. A good mattress {or any main furniture pieces, like a couch}. I did purchase my first full-size bed {with my parent’s help} a year after I graduated from college. Before that, I was sleeping on a hand-me-down twin size bed. Getting a good night’s rest is essential for everyone. But before you purchase any ol’ mattress, be sure to shop around for quality as well as cost. If you’re going to be spending a lot of time on a piece of furniture, like your bed or a couch, then you want it to be comfortable, and well-built of good quality materials that will last for several years. And don’t forget to get a bed frame or pillows while you’re at it. In fact, having a good pillow is almost as important as having a good mattress. Looking for a good pillow? Then try Casper pillows, which you can get at Target.

   

2. A coffee maker. I don’t drink coffee, but I can’t live without my Keurig. I can make hot chocolate or tea and take it with me to work. And just think of how much you’re going to save by not spending $3 {or more} on a cup of coffee from Starbucks. A quality coffee maker will not only save you money, but will be more convenient for you since you won’t have to wait in line to but that $3 cup of coffee. You can also use the hot water to made a cup of Ramen noodles.

   

3. Quality pots and pans. This goes along with having a good coffee maker. Just like buying a coffee or specialty drink at Starbucks, eating out with friends or grabbing a quick bite to eat outside of the home can put a toll on your bank account. Spend that money to buy some groceries, and then invite your friends over for dinner for a night of games or for movie night. BYOB {if you drink}. Quality pots and pans, if you take good care of them, will last for many, many years.

   

4. A quality briefcase/messenger bag/ or tote bag. A professional looking bag will put out that vibe that you have your stuff together, even if you don’t. Carrying a presentable, neutral-colored bag, will show that you mean business.

   

5. Exercise. Some people can’t afford a gym membership, but there are a lot of other ways to get exercise without it costing you an arm and a leg. And if you have the time and room in your apartment or house, and you feel that you can put in the time to take care of a pet, then go to your local Humane society or Pet Rescue center and adopt a new furry friend. Then both of you can exercise together.
6. Investments. When you get your first job, see if your employer offers a 401(k), IRA, or Roth IRA. If they do, then invest. Some employers match your contributions to a 401(k), so take advantage of this. If not, then go to your bank and ask them about opening one of these types of accounts. Now is the time to start putting away money for retirement, not when you’re 40 or 50 or 60.

Other things to consider doing in your 20s?

• Develop a financial plan and set a budget. Doing this will help you not only get debt-free, but will help you save for other things, like vacations and retirement. And when setting up a budget, don’t forget to budget in your emergency fund. Essentially, plan to spend less than you make.
• Build an emergency fund. Work to save 3-6 months of expenses, just in case of emergencies, like car repairs or, heaven forbid, you lose your job. You may need to start small. Think of it like this: pay yourself between 1-5% and put that in your emergency fund. Eventually, you can increase that percentage to between 15-20%. My husband and I have a second savings account that we can transfer money into anytime, anywhere {via laptop or through the app}, but we can’t withdrawal from it anytime or anywhere.
• Clean up your online presence. Employers do look at your Facebook page and your Instagram account, so remove some of those potentially embarrassing photos. Also, double check your privacy settings.
• Get your key documents together {i.e., birth certificate, Social Security card, apartment lease, insurance papers, etc.}. Invest in a safety deposit box to safely store these items. My husband and I have one through our bank and it’s only $30 a year, so budget for this if you can.
• Cut the cord. What do I mean by this? Stop relying on your parents to pay your way through life. This one is harder to do, and even I have had a hard time with it. There have been a few occasions that I borrowed money from my parents {and even one time, from my grandparents}, but I have always paid them back. Sometimes a little struggle builds character and makes you more self-reliant and less dependent on your parents. And along this same line…
• Build your credit. How do you do this? Get your own cell phone plan. Pay for your own insurance {car, health, renters or home}. And if you get a credit card, then try your hardest to pay it off every month to avoid those hefty finance charges. You’ll have to have a little bit of debt to help build your credit score, but paying your bills on time also helps to build your credit.
• Get insurance. Whether it be health insurance, car insurance, renter’s insurance, or homeowner’s insurance, it will come in handy if you get sick, get in an accident, or if something happens to your apartment or home.
• Be thrifty. You don’t have to purchase designer clothes at full price. Head to your local thrift or consignment store to find some gently used designer duds. There are also some great online consignment sites, like ThreadUp, but eBay is another good way to find inexpensive designer clothes.

As I mentioned earlier in this post, I only have a few regrets from my early 20s. One of those is that I didn’t take advantage of the study abroad courses through the university I attended. Another one is that I didn’t apply for more summer internships in the field I eventually wanted to work.

I also regret not taking more risks in regards to what I wanted to be when I grew up. My last year in college, I interned at the local ABC affiliate in Chattanooga during the first semester and then actually gained part-time employment status at this same TV station as a video editor for the 6 pm and 11 pm news shows. I really feel like I could have honed my skills and moved up the ladder to be a news reporter. I had an English degree and wanted to use it, so I applied for and two months after graduating from college, I was hired as a newspaper reporter {mainly covering the police beat} for a daily newspaper {which is actually how I met my husband}.

I know this was a lot to take it, but I hope that my “advice” will somehow help you. You may be in your teens, 20s, 30, or 40s (like myself), but honestly, it’s never too late to actually invest in some of the things I mentioned above.

What do you consider the most important purchases 20-somethings should invest in? I’d love to hear your thoughts, so leave your comments below!

Yours Truly,
Vanessa