7 Essential Money Moves for Women in Their 20s
Smart money tips for women in their 20s—save more, invest early, and build financial freedom with confidence.
feel like you’re supposed to have your whole financial life figured out in your 20s—but no one handed you the rulebook? Between chasing career dreams, navigating adult responsibilities, and still wanting to enjoy life, money management in your 20s can feel confusing or overwhelming. But here’s the truth: the sooner you start making smart financial moves for young women, the easier life becomes—less stress, more freedom, and a future you’re genuinely excited about. The best part? You don’t need to be rich or perfect to begin. Just a few intentional steps can help you build a strong financial foundation, gain confidence, and start living the life you want. Ready to take control? Let’s break it down—simple, real, and totally doable.
1. Build Your Emergency Fund
Your emergency fund is your financial safety net, and it’s one of the most crucial things you can do for your future self. Life can throw curveballs at any time—a sudden medical expense, a job loss, or an unexpected repair—so having cash on hand gives you peace of mind during those unpredictable moments.
Start with small, consistent savings. Even setting aside just 500 KSH a week can add up over time. Aim to save 3 to 6 months’ worth of basic living expenses, such as rent, groceries, and utilities. Keep it in a separate account that’s easy to access when needed but not so easy that you’re tempted to dip into it.
Why it matters: An emergency fund protects you from debt and helps you feel secure when life gets uncertain.
2. Get the Right Health Insurance
You may feel healthy and invincible now, but it’s important to consider health insurance early. Medical emergencies don’t come with a warning, and the right coverage can save you thousands when you least expect it.
Start by checking your employer’s health insurance plan if you have one. If you’re self-employed or freelancing, look into affordable individual plans. In Kenya, the National Health Insurance Fund (NHIF) is a great option, and you might also want to consider private insurance for more comprehensive coverage.
Why it matters: Without health insurance, medical expenses can set you back financially. A good plan protects your health and your wealth.
3. Design Your Career Around Your Ideal Lifestyle
Your career is more than just a paycheck—it should also support the lifestyle you want. Think about what your ideal life looks like. Do you want to travel more? Work remotely? Spend more time with family? Or even start your own business?
Your twenties are the perfect time to explore career paths that align with your values. Learn valuable skills, network with people who inspire you, and don’t be afraid to take risks. Whether it’s picking up new certifications, starting a side hustle, or switching industries, now is the time to take charge of your professional life.
Why it matters: When your work aligns with your passions and lifestyle, it no longer feels like a daily grind. You’ll be more motivated, fulfilled, and financially successful.
4. Create and Automate Your Budget
Budgeting is a tool, not a restriction. It’s your roadmap for where your money goes, allowing you to make intentional financial choices rather than letting your money slip through your fingers. The key is to track your spending and automate your savings.
Use budgeting apps like Mint, YNAB, or a simple Google Sheet to categorize your expenses—things like rent, groceries, savings, and even fun activities. Then, set up automatic transfers for your bills and savings, so your financial goals happen without effort.
Why it matters: A budget helps you stay on track, avoid overspending, and feel empowered to prioritize what really matters.
5. Avoid Lifestyle Inflation
When you get a raise or land a higher-paying job, it’s tempting to upgrade everything—bigger apartment, new wardrobe, more expensive nights out. But here’s the trick: resist the urge to increase your spending.
Instead of inflating your lifestyle, use any extra income to build wealth. Boost your emergency fund, invest in the stock market, or pay off any existing debt. Keeping your expenses stable while your income grows accelerates your ability to build long-term financial security.
Why it matters: Avoiding lifestyle inflation gives you the freedom to save and invest more, which means building wealth faster and having more control over your financial future.
6. Start Investing Early
Investing might seem intimidating, especially when you’re just starting out. But the sooner you start, the more time your money has to grow, thanks to the power of compound interest. Don’t wait until you “earn more”—start investing with whatever you can, even if it’s a small amount.
In Kenya, there are easy ways to get started, from investing in stocks to mutual funds and index funds. Money market funds allow you to start investing with as little as 1000 KSH. Focus on long-term strategies, and avoid trying to get rich quick.
Why it matters: The earlier you start investing, the more time your money has to compound and grow. Your future self will thank you for the choices you make today.
7. Save for Retirement (Start Small, Start Now)
Retirement might feel far off, but the best time to start saving for it is now. You don’t need to contribute large amounts to make a big difference in the long run—small, consistent contributions add up over time.
In Kenya, you can start with the National Social Security Fund (NSSF), which automatically deducts contributions from your salary. Alternatively, consider private pension schemes through insurance companies or banks. Start with just 5% of your income, and set it on autopilot to make it a habit.
Why it matters: The earlier you save for retirement, the more you benefit from compound growth. You’ll enjoy a comfortable retirement without financial worries.
Conclusion
You don’t need to have everything figured out right now. The important thing is to start taking intentional steps toward your financial future. By making these small, smart decisions today, you’re laying the foundation for a lifetime of financial freedom, and security.
Start where you are—don’t wait for the “perfect” moment. Your future self will be forever grateful.
7 Essential Money Moves for Women in Their 20s
