Twenties are that strange time in limbo.
Some of your friends have just bought a house, others are living under their parents’ roof.
Group chats are detailed with tales of disastrous Tinder dates, while on Instagram, feeds are filled with peers saying “I do”.
You see bank accounts of six figures against the contrast of pals struggling to fill their cars with $10 at a time.
No matter where you’re situated on the ladder, there’s no denying it’s all over the shop.
It’s almost as though we’ve been given all the adult resources of money and freedom with little to no guidance.
And while comical, it's also pretty stressful.
The concept of financial literacy is shrouded in taboo — it can be an uncomfortable topic to discuss.
Many are more likely to wield a weapon from the hip that let slip the contents of their bank account.
But that’s the thing, with secrecy breeds shame, with shame adds further privacy, and the cycle continues.
Financial literacy doesn’t happen overnight, and for many who’ve had an unsteady foundation on which to base their own money habits, it can prove a whole other world of difficult.
We made the rounds and asked a group of twenty-somethings what their main money concerns were.
Then, managing director and founder of Sofcorp Wealth and the WOW Women Group Tracey Sofra sat down with us to answer a few of the questions, and let us know what the hell we should be doing.
For someone who has just starting their financial journey, what should the first step be?
Though confronting, Tracey suggested taking a step down memory lane to understand your own money story and mindset.
“You’ve really got to understand your own hang-ups about money, and that is inherited through your upbringing,” she said.
“So if you're a bit of a spendthrift, start digging back and having a look at your history.
“What happened at home with Mum and Dad? What were the stories and how were you treated? How did they spend their money and what were your personal experiences? Are you rocking the boat because it was really tight and now you just want to spend everything?
“If you follow the dots, you will go back and go ‘oh my god, of course, I'm doing that because...’ and so that's really the place to start, to understand that.”
From there, Tracey said only basic skills needed to be learnt — skills that probably should have been taught in school.
Where should people seek education surrounding money?
It’s no shock credibility in the finance world should be a key attribute when seeking advice, but in a world of influencers flashing their designer labels, luxury cars and multi-million dollar mansions, Tracey has two words of advice: be careful.
“I say not all that shines is gold,” she said.
“Which means that people who look wealthy on the outside, scratch the surface, and there's not much underneath.”
Along with the obvious staples of online resources and books, picking the brain of someone you look up to or someone who’s gained their own wealth is at the top of the list, and don’t be afraid to ask the hard questions.
How much money should I have?
It’s important to remember that everyone has a different money story.
We’ve all come from different backgrounds, socio-economic statuses, privilege, the list goes on.
In our discussions around the traps, one topic continually came up.
We asked Tracey if there was any set balance one should be aiming for or have stuffed in a piggy bank.
She kindly prefaced this with a “don’t feel bad if you don’t”, but suggested a minimum of three months of income set aside in an emergency fund.
To get there and above, it’s about forming habits.
“Irrespective of your situation, pay yourself first, get the money out of the account,” she said.
“Don't think for one minute that when your wages go into that bank account, there's going to be money left over — there never will be.
“You will never get your turn unless you decide that you come first.
“A direct debit happens out into another bank account, get that going first and then take it from there. That's the most important thing.”
When is the right time to invest and how much do I need?
As a self-proclaimed fence sitter, on the sidelines is where I fit best.
But to make that extra moolah, Tracey said that was not the place to be.
She said to invest, it was not about how much you were putting in to begin with, but when.
With the power of compound interest, it’s all about the clock.
“If you start 10 years later, you will never catch up to the person that started 10 years before you, even if you throw more money at it,” she said.
“You can't continuously do programs and read stuff and say I'm not ready.
“Come on! Because the biggest thing you're wasting is time and you can make more money, and you can get more money throughout your lifetime, but when time goes, it doesn't come back.”