4 Reasons You Need a Financial Planner in Your 20s

5 October 2023

If you are in your 20s, you're likely figuring out your career or relationships, but your finances are also important. This is the perfect time to create good financial habits and set achievable short-term goals. By making wise decisions, you'll be better prepared to handle any financial challenges that may come up later on.

A financial planner can save you a lot of time and hassle, and help you reach your financial goals sooner. As the old saying goes, "If you wish for good advice, consult an old man." A financial planner can be a valuable asset to anyone, but they can be especially helpful for people in their 20s who are just starting out.

Here are 4 reasons you need a financial planner in your 20s to improve your financial future:

1. To Create A Personalised Financial Plan

A Financial planner can help you analyse your current income and create a financial roadmap for you to follow. Whether you’re earning a larger salary now and you’d like to make the most of it, or if you have big goals coming up like buying a home, planning a wedding, or growing your family, a financial advisor can guide you through these exciting financial situations. 

Beyond these major life events, a financial planner can help you develop good financial habits from a young age, teaching you the importance of budgeting and saving for the future. They will teach you things like how to save for your emergency fund, and calculate the unexpected expenses and personal burn rates. 

As your family grows, they can guide you on how to protect your loved ones with insurance options, ensuring that your financial future remains secure.

Top 10 Financial Planners - 4 Reasons you need a financial advisors in your 20s

2. To Design You A Tailored Investment Strategy

Investing can be tricky, but it's one of the best ways to grow your money over time. A financial advisor can teach you the basics of investing, get you into the stock market and help you choose the right investments for your risk tolerance and financial goals.  Investing becomes even more powerful if you start at a young age, but it’s really important to make sure you have the right advice to invest wisely.

Superannuation is another significant investment that you can get help with. A financial advisor can help optimise your superannuation so that it is more effective over the long term.  For example, finding the right fund with lower fees and higher returns, or helping you select the best investment strategy for your situation. 

3. To Help You Pay Off Debt Faster

Most people have some form of debt, such as HECs, car loans, credit card debt, or a mortgage. Debt is most often a burden on your finances, but there is a way out. Finance advice can help in areas such as debt repayment plans, finding better interest loans or advising on whether you should consolidate your debt, or even advanced strategies such as debt recycling. Strategies like these can save you thousands of dollars and help you escape your debt faster. 

And of course, financial advisors can help you avoid making financial mistakes that can lead to more debt.

4. To Start Planning For Retirement

It may seem early, but retirement is something you should start thinking about in your twenties. This is because, the earlier you start planning your retirement savings and investing, the more time your money has to grow. Retirement is a long-term goal and savings journey that requires planning and consideration. Starting early allows you to leverage the power of compounding. Even small contributions to retirement savings in your 20s can grow substantially over decades, providing a comfortable nest egg when you eventually retire.

You might have heard of the term FIRE (Financial Independence Retire Early). This is basically you having the choice to retire when you want to, maybe quite a bit earlier than most people, and using your time to do what makes you happy. This is much more achievable if you start planning as early as possible. 

Find out how much money you will need to retire and how soon you should begin saving.


So, there you have it! Four reasons why you need a financial planner in your 20s. If you're ready to take charge of your financial future, you could find a financial planner who specialises in working with young adults and early-career professionals. 

Bonus tip: Don't be afraid to ask questions. A good financial advisor will be happy to explain things in a way that you understand.

Take the initial step toward your financial future with the assistance of our Top 10 Financial Advisors. Contact us today.