People in their late-20s often start to panic as they close in on that 30 milestone. They can no longer put things off and blame being young for doing so.
It is likely they have had almost a solid decade of work under their belt, gotten most of their partying out of their system and are now looking at ways to become more financially confident.
A large chunk of 20-somethings may have put off saving for the future and instead spent, living for the here and now, some taking on debt and others seeing the shutters pull down over their eyes when the word 'pension' is mentioned.
But while heading into your 30s can be daunting, it is also the perfect time to evaluate your finances and get into shape to be better off in the future.
Here, This is Money gives some essential tips on how to do it – future you will be thankful!
1. Start paying into a pension - or increase your contributions
This is tip number one because it is startling just how many 20-somethings ignore their private pensions.
Many will have been enrolled into a pension automatically – but unless you make changes yourself, it is likely you are putting in just one per cent of your wage into the pension, with your employer matching it - unlikely to be enough to retire on.
The great thing about pension saving is that it's not just you putting money into the pot - your employer and the government also chip in.
The more you put in, the more they put in - and there's no point in declining free money.
You may feel like you don't have the spare cash to put in, but even a small increase is better than nothing, and can really start to add up over time.
Some employers even offer higher contributions for staff who have been at the firm for some time. Many people in their mid to late 20s are likely to be in this position, and could therefore benefit.
The amount you need to save for a good retirement depends on many factors, including how long you intend to work for, how your earning power changes over your working life, and the quality of life you're aiming for in retirement.
A rule of thumb often cited is that the percentage of earnings workers should save is half their age from when they start saving. So if you are 30 and have not started saving for a pension, this would amount to 15 per cent. However don't forget you're not just relying on your own contributions to hit this target; there's tax relief and employer contributions as well.
Don't worry if this sounds intimidating, a little is better than nothing - even if it's just another percentage point - and a little more than that is better again - do what you can manage and you'll be well on your way.
2. Buy a home (if it suits you)
Many Britons get hung up on buying a property. It is something embedded in our psyche. However, it's hard to argue when mortgage payments often work out lower than rent – it makes us want to own a physical asset rather than loan it.
It is likely many in their 20s will be renting privately or living with relatives. Recent figures from the Office for National Statistics show the number of homeowners in their 20s has been declining steadily. The biggest hurdle is often the deposit.
On a £200,000 property, the deposit is a meaty £20,000 on a 90 per cent loan-to-value mortgage. Plus the £1,500 stamp duty and solicitor fees on top, as well as other costs.
But with mortgage rates at historic lows, getting on the property ladder – if it suits your lifestyle – can be a worthy step, especially with such a strain on the number of homes available compared to demand.
Mortgage rates are low – two-year and five-year fixes for first-time buyers are appealing. Royal Institute of Chartered Surveyors estimates property prices will rise 25 per cent in the next five years.
It's impossible to tell the future, but if you do invest in a property, make sure it is something you are not going to outgrow within a short period, so that you are not stuck in a property you can't sell if the value does fall - and also because moving home is very expensive.
Also make sure that you could afford higher payments if interest rates start to rise. Interest rates have been at rock bottom for years now, so it is easy to forget that at times rates can go much higher.
Remember that rushing to buy a home doesn't always make financial sense for everyone. If your monthly costs would be cheaper renting, it's worth thinking about whether it is the best time to buy, or whether you'd be better off putting away the savings you're making until you've got a bigger deposit.
It's no secret that savings rates paid by providers are at rock bottom. This will put many off saving.
But the most important thing about being in your 20s and saving, is simply getting into the habit – walk before you run.
Sticking away £50 per week may not sound like much, but you're talking £600 by the end of the year. This can then be used as a base to keep growing – a rolling snowball that turns into something far bigger as you head into your mid-30s.
4. Pay down your debts
A large portion of those in their 20s will have student debt. There is not an awful lot you can do about that except pay it off month by month.
However, you can do something about credit cards you may hold. If you do have a relatively large credit card debt, look into taking out a balance transfer card. Before you know it, it will be paid off and you will stop being stung by monthly interest.
Also, if you are tempted into putting big ticket items on a credit card, make sure you pay off the full balance – don't give money away easily to banks. If you cannot afford something, don't overstretch yourself by using credit.
If you do have outstanding debts, make sure you're paying the lowest possible rates of interest on them - and pay off the debt with the highest interest rates first.
5. Ditch the waste
There is something about being in your 20s that often goes hand-in-hand with wasting money, usually because it is when you first start getting a solid pay packet to do what you want with.
Whether it's £30 on those rounds of tequila or £100 on a pair of shoes you wear once, by the time you're heading into your 30s it's time to be less frivolous.
Why not round up all the needless items, whether it be clothes, gadgets and DVDs and sell them at a boot sale, or use an online market place. And stop yourself from needlessly spending on rubbish you never use.
It might be a bit more boring not buying those tequila rounds or shoes, but your bank balance will thank you for it.
6. Budget better
Some feel allergic to writing lists – but it works when it comes to budgeting. How much food do you waste each month? How much electricity and water goes to waste? Do you really need that Sky television package?
Trim back and learn to budget more. Take a look at your bank statements from the last six months.
Trawl through payments that were unnecessary and tally them up - make it your mission in the next six months to save that amount.
7. Learn about investing
Investing, a bit like pensions, feels too serious for many in their 20s. It might bring up images of the Wolf of Wall Street trading penny stocks on huge screens filled with graphs in a pinstripe suit grinning with a cigar.
As you signal left at Junction 30 of life, it could be time to embrace investing - and put those images behind you.
Being younger, you can take more risks with any surplus cash – and at a time of pitiful savings rates, a stocks and shares Isa or a simple investment platform such as Nutmeg could be worth investigating.
The best advice is to start small and see how you get on. There is a chance that you could lose money, but do some research and read about it – it's not nearly as complicated as you may think.
8. Talk about finances
Talking about finances with your partner or close friends and family could help.
They are likely to offer advice or help if you are struggling to get your head around a problem.
There is a tendency to clam up when it comes to your personal wealth, or lack of, but you'll be surprised what you can achieve with collective minds.
Have you had a pay rise in the last few years? If the answer is no, it might be time to. Be polite, ask on a Friday when happiness in the office is likely to be higher and don't be embarrassed.
Come up with a list of reasons why you feel you deserve one – loyalty, skills you bring and where you want to progress should form the backbone.
Alternatively it might be time to cast your net wider and see what other options are available to you, especially as you're likely to now have experience.
And besides, if you are offered another job, that would give you some serious bartering power to make your boss think twice about refusing a pay rise. However only go down that road if you would seriously consider giving up your current job.
10. Ditch and switch
Loyalty seldom pays. How long have you held the same current account for? And are you happy with the service?
Quite often, those in their late 20s are holding onto their original current account they may have opened at college or university - and may not be the best value for you.
You can now crunch your statement history through a government-backed system called MiData. This will analyse 12 months of spending to show which account would be best for you.
It is also worth shopping around for a new energy deal while you should use a comparison website when it comes to renewing your car and home insurance to ensure you are getting the best value.
11. Curb the coffee habit
Coffee shops seem to be popping up in every nook and cranny of Britain, taking your hard-earned cash in return for a drink you might not be able to even pronounce properly.
Instead of wasting £2.50 a day, or £17.50 a week, £910 a year, if you really need that coffee hit, invest in a decent coffee machine and buy the refill pods online. They usually work out at no more than 40p a coffee, plus the £40 or so for the machine.
At the end of the year, see how much you’ve saved. It should be £40 + £146 roughly using the machine for a year – a sizeable saving of more than £720. Or if it’s all to overwhelming, perhaps limit yourself to one or two takeaway cups per week.
Are there other expensive habits you could ditch? While they only seem like a couple of quid here and there, over time they can really add up.
12. Ask questions
If you don't ask, you won't know. Seek advice from a financial adviser - This is Money has a postcode IFA search to find advisers near you and what they specialise in.
By Lee Boyce
