Our 20s can be a tricky time, especially when navigating finances, savings and investments. Newsfeeds are made up of updates from a variety of life stages as people grow and change at different paces. This makes gauging your own milestones in comparison a confusing task.

If the current financial climate is anything to go by, with interest rates at a mere 1% and inflation rising to 6%, it’s vital for young Aussies to set good financial habits young – but navigating your finances in your 20s or even knowing where to start is no easy feat.

In fact, new research by Chillur reveals only 37% of Aussies aged 18-34 are currently saving for a house deposit, whilst 23% can’t afford to get on the property ladder.

Whilst a house might not be a current goal for every 20-something, there is likely aspirations to be able to one day save towards your dream home.

There are a few ways that young Aussies can create a healthy relationship with money:

Know your money habits: Are you a spender or a saver? Knowing which category you fall into can help you make better choices financially. For example, if you’re a spender by nature, you could set yourself a clear spending budget and put your money into savings as soon as you get paid. If you’re a saver, it’s okay to reward yourself every now and make time to enjoy the money you worked so hard for.

Avoid lifestyle inflation: With each raise or bonus, we can subconsciously begin to increase our everyday spending. It can be tempting to splurge on the nicest car and the newest clothes to match this new way of life. However, it’s important to ask yourself, could this increase in cash flow be put to better use?

Avoid consumer debt: It’s easy to fall into the out of sight, out of mind when it comes to credit cards and buy now, pay later schemes but as the adage goes ‘don’t spend money, you don’t have.’ Bite sized payments can feel more digestible, but would you be spending that lump-sum if it had to come out of your account at the checkout? The answer is probably no.

Invest in your future: Having savings is great but it’s important to start investing early to make sure that your money is working for you. It’s never been easier to start investing than it is now with micro-investing platforms, such as Chillur, hitting the market in recent years. Micro-investing platforms allow you to start investing with as little as $5 per week and they don't have any hidden fees chewing away at your earnings. Your portfolio can grow into thousands of dollars in just a couple of years by investing just a cup of coffee's worth of money every week.

Know your network: Surround yourself with people who support and know your financial goals. Find a network who are happy to swap a night out for staying in when they know you’re saving for something important. Opt for social catch ups like movie nights, walks and beach days rather than cafes, bars and concerts.

About the research

The research by Chillur was carried out on a national representative sample of 1008 Australians aged 18 and over in March 2022. Methodology: The data sample was weighted against ABS data for age, gender and location using an online survey that is independently conducted and verified PureProfile.