Young professionals struggling to manage money? Experts share how to start

Learn how to start, avoid pitfalls, and build long-term financial discipline

For many young earners, the crediting of first salary maybe an overwhelming experience. But soon the reality strikes, as the money disappears faster than expected.

 

“It’s common to feel overwhelmed when trying to manage your income, expenses, and savings all at once,” says Dante De Gori, chief executive officer of Financial Planning Standards Board (FPSB), the global body that sets professional standards and issues the Certified Financial Planner (CFP) certification across 28 countries.

 

Experts stress that starting simple can make all the difference.

“A simple starting point is the 50–30–20 rule because it gives beginners clear boundaries without feeling restrictive,” adds De Gori. This method allocates 50 per cent of income to essentials, 30 per cent to wants, and 20 per cent to savings or future goals.

 

He shares that a young professional, by tracking discretionary spending for a few months, built an emergency fund and gained confidence in managing money.

 

Common pitfalls for beginners

Many first-time budgeters make errors that undermine their efforts. 

“People often underestimate small, frequent expenses, like coffees, online purchases, or last-minute transport,” notes De Gori. These can disrupt the monthly plan if left unchecked. Another common mistake is setting unrealistic goals. He recommends focusing on one or two manageable changes rather than attempting a complete financial overhaul. 

Viplav Majumdar, chief financial officer and founder of Planyourworld.com, an online financial education platform, adds that trying to make the budget too rigid initially can backfire. Beginners should track expenses across daily, monthly, quarterly, and annual categories to match their calculated savings with bank balances. He stresses that budgeting is about allocating funds before spending, not just recording costs after the fact.

 

Adjusting budgets for life’s surprises

Unexpected costs, like medical bills or income disruptions, require flexibility. De Gori advises young earners to prioritise essential needs, temporarily curb discretionary spending, and rely on an emergency buffer. “Even a modest fund built over time reduces stress and makes navigating sudden expenses far more manageable,” he says.

 

Habits that sustain budgeting

Consistency is critical. Both experts agree that following simple rules like the 50–30–20 approach and tracking all expenses, including future obligations, fosters long-term discipline.

 

Majumdar highlights the importance of linking investments with future goals such as children’s education or retirement, noting that “your secure future is in your present savings.” Budgeting, when done thoughtfully, becomes more than a financial exercise, it cultivates awareness, discipline, and confidence, laying the groundwork for lasting financial freedom.