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Author: Mohamed Hamza Ghaouri

Your 20’s is the best time to learn good habits and adopt sane financial behaviors to ensure financial stability throughout your life cycle.

Timing is one of the most important elements of making, saving and investing money in life, and the better time to start is your early 20s, because you have light years ahead of you.

Here are some tips that are likely to set you in good stead for a healthy financial future:

  1. Don’t live beyond your means. Enjoy the simple things and reduce expenditure on unnecessary items like eating out, clothing and so on.
  2. Don’t keep up with your friends. Be aware and avoid peer pressure and social pressure.
  3. Have a food budget. Being aware of the share of your money dedicated to food will limit your choices whenever you are out.
  4. Tally things up: take the time each month to sit down and figure out where your money is going, where the wastage is, and how you could have saved more.
  5. Pay with cash: Credit cards or even debit cards are an easy way to lose track of where your money is going. ash forces you to keep track on a daily basis.
  6. Have separate accounts. Dedicate each of them to a different purpose (expenditure, savings, investment, etc).
  7. Adopt a healthy lifestyle. Staying in shape will keep you from spending money on health issues.
  8. Avoid a fancy lifestyle. A lot of money is wasted on fancy labels for absolutely nothing.
  9. Avoid taking on debts. In this period of your life, you have fewer responsibilities you survive with what you have. Don’t take loans.
  10. Make saving money a habit. Don’t consume 100% of your income. Always put aside at least 30% of it.
  11. Plan for investment. Explore investment products and opportunities available and engage when possible.
  12. Make sure that your investments are shariah compliant to maximise the revenue. Waqf can be a great opportunity to make a sustainable impact, generate yield in life and have ‘Ajr in the hereafter.

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