Victoria Devine, a financial expert dedicated to helping individuals navigate their money choices, shares a refreshing perspective on the spending habits of people in their 20s. She discusses how prioritizing experiences over savings is common and emphasizes that past financial decisions don’t define one's future. Victoria encourages listeners to embrace their history and provides practical steps to improve financial management at any age. It’s all about owning your journey and taking empowered steps forward!
Understanding the psychological factors behind financial choices in your 20s can help reframe regrets into opportunities for future growth.
It’s never too late to start saving, and small, consistent changes can significantly enhance your financial stability over time.
Deep dives
Understanding Financial Decisions in Your 20s
The episode emphasizes that the financial choices made in one's 20s are often influenced by psychological factors, notably the development of the prefrontal cortex, which doesn't fully mature until around age 25. This area of the brain is crucial for decision-making and impulse control, which explains why young adults may tend to prioritize immediate gratification over saving for the future. Research has shown that many young people face pressure from social comparisons, seeing peers traveling or achieving financial milestones, leading them to spend beyond their means. The discussion underscores that this phase of exploration and risk-taking, while often financially precarious, is typical and doesn’t define one’s future financial stability.
Reframing Your Financial Journey
The conversation encourages listeners to shift their perspective regarding financial progress, asserting that it is never too late to begin taking control of their finances. The narrative combats the notion that not saving in one's 20s equals being forever behind by highlighting that each day presents an opportunity to start fresh, with achievable steps toward a better financial future. The hosts suggest practical strategies like setting up automatic savings transfers, even in small amounts, as a way to ease into a more secure financial lifestyle. Ultimately, the key message is that personal financial journeys are unique, and progress—no matter how incremental—is valuable and should be celebrated.
Small Steps Toward Financial Control
Listeners are urged to focus on actionable and manageable steps that can lead to long-term financial improvement without feeling overwhelmed. Simple adjustments, such as increasing superannuation contributions by a small percentage or consolidating multiple super accounts to reduce fees, can make a significant difference over time. The emphasis is placed on creating new habits that foster sustainability, such as redirecting funds usually spent on small luxuries into savings accounts. The episode concludes by reinforcing that every positive move, however minor it seems, contributes to building a healthier financial future and that maintaining motivation throughout the journey is key.
Did your 20s look more like cocktails and concerts than savings accounts and spreadsheets? You’re not alone, and guess what- it’s totally okay! In this episode, Victoria Devine breaks down why blowing your budget in your 20s doesn’t mean you’re off track. She flips the script on those financial regrets and shows you how to make the most of where you are now. It’s time to own your past, love your present, and build a future that’s all yours.
The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708, AFSL - 451289.
