Nonetheless, you should begin to plan for these common issues as soon as possible to minimize financial impact and increase your own money management knowledge.

1. Plan for retirement

If a 22 year old puts $100 a fortnight into a savings account, he or she will save approximately $2600 a year for his/her retirement in the future. This means over $85,000 for a retirement at 55 or over $111,000 for a retirement at 65 years of age. By increasing these payments as salary levels go up, the savings become even more significant.

2. Pay off mortgage loans as fast as possible

Many young people are faced with high levels of debt, for example, HECS or a personal loan for your first car. It is very important that you try to pay back your mortgage loans as quickly as possible to eliminate accumulating interest. Put as much of your expendable income into paying down your mortgage loans as quickly as possible.

3. Save

Just as you would put some money aside for retirement, it is ideal that you also start saving for 'a rainy day'. A time will come when this money needs to be used, for example, as a deposit for a house, the purchase of a new car, payment for a wedding, or a variety of other personal reasons.

Put as much money aside as possible and you can avoid feeling stress every time an emergency crops up.

4. Develop a Budget

Budgeting allows you to plan for your short term and long term goals, such as paying your debts, saving for a house, or enjoying a better lifestyle.

Make a list of your income and expenditures. Focus on lowering expenditures you can do without, while balancing any savings and debt payments that need to be taken care of. Starting a budget early on will make money management a breeze when children and house repayments enter the picture. Use the budgeting calculator to get started or speak to a financial advisor for help.

5. Improve Your Credit

In addition to lowering your debt, you should start developing and maintaining positive credit ratings as they will impact you when you need to get a home loan.

In Summary

Financial planning in your twenties essentially means you will need to manage priorities for a secure financial future. It is worthwhile to seek professional advice from an accredited financial planner to educate yourself on good money management and how you can have a financially stable future.

For help on financial planning and how an Intellichoice financial planner can assist you in achieving your financial goals, call 1300 55 10 45 today.