Learn How Money Works (And Why It Matters) To Get Started With Financial Planning in Your 20s

Money touches almost every area of life. However, most of us weren’t taught how to manage it. Before you jump into advanced financial strategies to start setting our strong foundation with financial planning in your 20s, spend time understanding the basics:

• Income – What you earn (yes, even side hustles and tips count).
  
• Expenses – What you spend. Bills and living expenses included, know where your money goes.
  
• Saving – Putting money aside before you spend for future needs.
  
• Giving – Tithing and generosity as a method of gratitude, worship, and obedience.
  
• Debt – What you owe, and how interest works.
  
• Investing – Planting seeds today for long-term growth and how interest can work FOR you.
  

This knowledge isn’t just about success—it’s about stewardship. 

Proverbs 4:7 says, “Wisdom is the principal thing; therefore get wisdom.” Getting financially wise now will bless every season ahead.

Set Up a Budget That Actually Works (Try a Digital Envelope System)

If you’ve tried budgeting and it felt like punishment, you’re not alone. Many traditional budgets fail because they don’t adapt to real life.

That’s why I recommend a digital envelope cash flow system—an approach that lets you assign every dollar a “job” (based on your values), while giving you flexibility and clarity.

Key components:

• Use separate digital “envelopes” (bank accounts) for things like bills, groceries, gas, giving, fun money, saving, etc.
  
• Fund your envelopes every payday with a set percentage of your paycheck.
  
• Track your spending weekly with a simple check-in (5–10 minutes tops!).
  

Think of this like managing a mini-business with God as your CEO and you as His trusted money manager. Financial planning in your 20s has a lot to do with learning about yourself and your values, then making smart decisions to set yourself us for future success.

Build Your Starter Emergency Fund

Life happens—a flat tire, a sudden trip home, or losing your job unexpectedly. Having a starter emergency fund (aim for $1,000–$2,000 to start) creates breathing room (and helps you avoid needing to ask mom and dad for help everytime something comes up).

This isn’t your long-term savings. This is your “life’s a little crazy but I’m okay” fund.

Proverbs 21:20 says, “The wise store up choice food and olive oil, but fools gulp theirs down.” In modern terms: wise people save; fools spend every penny as quickly as they earn it. Don’t be a fool!

Make a Plan to Pay Off Debt (Especially Student Loans)

Debt can feel like a mountain—but you don’t have to climb it alone or all at once. Make a plan:

• List your debts from smallest to largest.
  
• Set a monthly payment goal.
  
• Automate payments when possible.
  
• Celebrate small wins.
  

Even if you’re on an income-based repayment plan right now, having a strategy keeps you in control. If you like charts and calculators, check out THIS [powerpay.org] tool to break down your debt payoff timeline.

Romans 13:8 says, “Let no debt remain outstanding, except the continuing debt to love one another.” Let’s move toward freedom, one step at a time.

Discover Your Money Personality (and Be Honest About Your Strengths & Struggles)

Are you a spender? A saver? A bit of both?

God made you with unique tendencies—some help, some hinder. Learning your money personality can help you avoid shame and lean into growth. (Psst… my free quiz can help with this!)

Once you understand how you’re wired, you can create habits and systems that work with your personality instead of against it.

Set Short-Term Goals That Align with Your Values

Retirement can feel really far away in your 20s. For this reason, we sometimes skip financial planning all together during this stage. But the truth is, financial planning in your 20s is what will allow you to build a life that you love well before retirement. What are you working toward right now?

• Saving for a car?
  
• Paying off a credit card?
  
• Traveling without debt?
  
• Giving more consistently?
• A wedding?
  

Write it down. Attach a “why” to it. Then make a small, specific plan to get there. Goals are powerful when they’re personal and on paper.

Proverbs 16:3 says, “Commit your work to the Lord, and your plans will be established.”

Start Planning for the Future—Even If It Feels Far Off

Retirement might feel like a distant dream, but the earlier you start, the easier it is. To lay a strong foundation for financial planning in your 20s, we have to balance both the short term and the long term (even the REALLY long term). However, since retirement is so far away at this point, it’s not the most important thing to think about right now, just an important piece of the puzzle we can’t leave out completely. Even setting aside $50 a month into a Roth IRA or employer 401(k) can grow significantly over time—and time is on your side!

This isn’t about obsessing over the future—it’s about planting seeds now that will bless your future, your family, and your ability to be wise and generous for years to come.

Financial Planning in Your 20s Requires Building Being Intentional About Career Planning (Your Work Matters)

Your career isn’t just about making money—it’s about calling. God has given you gifts, passions, and opportunities for a reason. Being intentional about your career path helps you steward your time, talents, and income wisely.

Here’s how career planning fits into your financial foundation:

• Income growth: Your job is one of your biggest financial tools. A clear career path allows you to grow your income strategically over time.
  
• Budget clarity: Knowing your earning potential helps you plan realistically—and motivates you to upskill or pivot when needed.
  
• Confidence: When your work aligns with your values and gifts, you show up more energized, fulfilled, and faithful.
  

Ask yourself:

• What kind of work lights me up?
  
• What skills do I need to develop?
  
• Who can I learn from or shadow?
  
• Am I working just to pay bills, or am I building something with purpose?
  

Proverbs 22:29 says, “Do you see a man skilled in his work? He will stand before kings.”

Don’t underestimate the long-term impact of being faithful in the workplace—whether you’re answering phones or building your dream business. Every season has purpose.

Final Thoughts on Financial Planning in Your 20s

If your 20s feel messy or uncertain, you’re not alone. You’re not alone. The small steps you take today—learning, saving, budgeting, planning—are sowing seeds that can multiply in powerful ways.

Start where you are. Be faithful with what you have. And keep your eyes on the One who holds your future.