This article outlines some general guidelines to help shift your mindset on how to manage your money in your 20s.
Whether you’re in school, working part time, or pursuing entrepreneurial endeavors, it’s important to learn how to manage the resources that we have. Such as our time, skill set, energy, and money.
Rather than focusing on detailed topics such as investing, saving, budgeting, etc. I am going to outline some foundational principles that have shifted my mindset on managing and using money.
I pray that these principles resonate with you also and help you gain a more harmonious relationship with money.
How to Manage Money in Your 20s
Implement a Stewardship Mindset
Being a steward over our finances means that we do not own our money. Instead, it is God that owns the money and he has entrusted us with it.
So, we ought to look at our finances as not something that we own but rather something that we’ve been given managerial leadership over.
Imagine how much more we take care of something when we know it doesn’t belong to us; and that someone has entrusted us to watch over it.
So, from a managerial perspective, we’re able to see how we can best allocate and maximize the funds that we have.
This can entail:
- Doing research before making purchases
- Reducing the amount of impulse spending
- Making rational decisions on where to allocate the money that we have (Creating a budget & saving)
- Investing rather than splurging all of our disposable income
Do Not Love Money
For the love of money is the root of all kinds of evil. And some people, craving money, have wandered from the true faith and pierced themselves with many sorrows.
1 Timothy 6:10 NLT
When this verse states that the “Love of money is the root of all kinds of evil”, that is not to say that money is inherently bad and evil.
We need money in order to purchase things that will meet our physical needs (food, clothing, shelter).
However, the verse highlights that the LOVE of money is the root of all kinds of evil. Hence, if you LOVE money and are relentlessly pursuing after it; then there’s a high probability that you will steal, lie, and even kill for it.
Rather, we must first seek the kingdom of God and everything else will be given to us. For “God will meet all of our needs according to the riches of His glory in Christ Jesus.”
How to Manage Money Better
Honor God With Your Wealth
Honor the LORD with your wealth and with the best part of everything you produce. Then he will fill your barns with grain, and your vats will overflow with good wine.
Proverbs 3:9-10 NLT
Honoring God with our wealth stems from the fact that he is the giver. It is God that has blessed us with our income to begin with.
He may use or employer or business to deliver the income but God is the original sender.
By honoring God with our wealth we’re displaying gratitude, gratefulness, and obedience.
- Gratitude that he has given us the money
- Obedience in following his command to give him part of our wealth
In practice, this means honoring God with our tithes , offerings, and being generous to others with our wealth.
Refrain From Being a Workaholic
Don’t wear yourself out trying to get rich. Be wise enough to know when to quit. In the blink of an eye wealth disappears, for it will sprout wings and fly away like an eagle.
Proverbs 23:4-5 NLT
The idea that our work input is a direct correlation of our financial output/reward can entrap us into a rat race. Where we think that if we put in tremendously more hours at work then we’ll reap a much higher financial return.
However, we are limited by various finite resources such as time and energy. This verse in the book of Proverbs instructs us to not strain ourselves and become workaholics in pursuit of greater financial riches.
Instead we must seek first the kingdom of God and live righteously and God will supply us with everything that we need.
So, instead of being a workaholic and pursuing more financial riches, we can find eternal riches chasing after God. In addition, we can efficiently manage the finite amount of time and energy that we have in building and strengthening our relationships.
All in all, in learning how to manage your money in your 20s, rest on the promises of God and that he will supply you with everything that you need. So that you are not burnt out in an environment that promotes hustle culture and the constant grind.
You may also like: How to Rest on the Sabbath: 15 Practical Ideas
