6 money lessons I wish I knew in my 20s

Being in your early 20s is full of exciting milestones, but it can also be a nerve-wracking time. With so much to learn—from choosing a career path to renting your first apartment—it’s not always easy to know if you’re making the correct choices, especially when it comes to your finances. You have to learn how to spend, save and invest your money, and to figure out which credit card to get or how to finance your education. And, if you’ve ever made mistakes with your money, it’s easy to feel like that one wrong move has thrown you off course for good.

Looking back, I made plenty of money mistakes along the way, too. The good news? I learned from them, which made me more confident in the way I handle my personal finances now. Here are six important money lessons I wish I knew when I was younger.

1. Your career choice is a financial choice

Reflecting back, it would have been wise to heavily research which types of jobs offered which salary ranges?before?beginning post-secondary education. Depending on your choice of degree, certificate or trade you could be on the road to a high-paying, in-demand job. However, you could spend time and money pursuing education in a particular field only to find out the industry offers low wages and poor job security. Interestingly, we are now witnessing an emerging trend where large companies such as Google and Apple?no longer require you to have a degree to apply for a particular role, so it’s worth exploring those options as well.

2. Your salary is negotiable

It’s hard to believe, but you can actually talk your way into better pay. I implemented this strategy during my year-end performance review and I was able to receive a raise. A portion of this extra income was directed towards my?registered retirement savings plan (RRSP)?while treating myself to a nice celebration dinner.

Many Canadians don’t take advantage of this: According to a?recent survey, just over one-third (36%) of Canadian workers negotiated a higher salary with their last job offer. This means there is money being left on the table. To take advantage of this opportunity, you can start by conducting industry research on current salary trends for your type of role. It’s important to show your boss that you know your facts along with how much value you bring to the table.?

If your employer will not budge on your salary,?you can negotiate other perks. Some of these include paid time off, extra vacation days, a flexible work schedule, better performance-related bonuses, stock options, health benefits, and even?an education budget. The more prepared you are, the more confident you will be when you have this discussion with your boss.?

3. Always maintain an emergency fund?

A job loss, dental bills or car repairs are all expensive problems that can happen at a moment’s notice. An emergency fund helps you cover these expenses and avoid stress and debt. This happened to me last year when I underwent an unexpected root canal surgery. Fortunately, I had partial dental insurance coverage to help pay for the costs. However, I still had to dip into my emergency savings fund, which made a $1,700 dent.

According to?Statistics Canada, 64% of Canadians have an emergency savings fund to cover three months’ worth of expenses. If you are looking to build or boost your emergency savings fund, it’s recommended to have between three to six months of expenses saved up. You may even consider topping it up further if you are facing financial instability and you want to ensure you can make ends meet for a longer period of time.?

Read the full column on moneysense.ca.