Developing financial skills allows you to take care of yourself and your loved ones, so you can prepare for investment. The steps are as follows:

1.Budget。Don't be overly demanding, budgets shouldn't make you cringe - it should be dynamic, sustainable, and a tool to help you live your ideal life。You might think that a budget is a "spending plan," but it's just a gadget that keeps track of your money。Overall, it captures two numbers - how much you make and how much you spend。

"Balanced budget" means that income is equal to expenditure, or there can be some additional income for you to spend at will。Ideally, you will have some surplus, you can use it to buy a new guitar, or start investing。

For most people, the basic budget may include essential expenses such as rent, health insurance, food and transportation; others may include clothing and entertainment expenses.。

2.分类。Your 20s can be an active time for socializing and exploring, and it is also a good time to start thinking seriously about your personal goals. More specifically, how do you use money to achieve these goals。

This is important because your surplus can be used in other ways。Many financial advisors advise you to divide your funds into different categories, each with a general purpose。Here are some useful categories:

• Money on hand: This money can be used for your immediate needs - food, rent and medical expenses, and most people keep such funds in easy-to-access checking accounts。
• Emergency fund: If your life, work, health or family circumstances change, it's best to have some savings to tide you over, about three to six months of living expenses。Emergency funds can ease your anxiety about unexpected situations。
• Medium-term funding: What do you plan to do in the next 3-7 years？For near-term goals, you may want more stability。Depending on your time frame and risk tolerance, the money may be used for high-yield savings accounts, money market accounts, or deposits。
• Long-term funding: Long-term investments tend to yield greater risk and reward。For example, if you're saving for retirement through a 401 (k), IRA, or other plan, you might invest in stocks, bonds, or real estate。

3.Maximize and minimize。Almost every investment has a cost - the more you pay, the less you can keep。While income may increase and expenses may increase, you may also want to maximize your ability to save and invest, here are some steps you can take。

• Retirement planning: Most companies that offer retirement plans use a 401 (k), a tax-deferred retirement savings account。A major benefit is that employers often "match" your contribution to a certain amount。For example, if you save 3% of your salary, the company may contribute the equivalent amount for you。Financial planners almost universally say that to get the most out of a company's 401 (k) plan and contribute at least a small portion to it, your profit may even exceed the projected range。401 (k) account is very easy to understand, you can adjust the contribution rate, it deducts funds directly from your salary。
• Compound interest: Compound interest provides investors with principal and interest, rather than a simple interest that only charges interest based on the initial amount of your investment。Over a few decades, the profits will be very different。
• Automation: If you're looking for an automated tool for long-term investing, perhaps consider EA Trading。EA Trading can help you manage a brokerage account where you can invest in assets such as stocks, bonds or exchange-traded funds (ETFs)。EA trading can do most of the work handled by traditional automated tools, but at a lower cost. It uses algorithms to automate money management for those who don't want to spend too much money but still want to invest.。(These accounts are usually designed for simpler portfolio needs rather than for the more complex trading needs of professionals。) In EA trading, you can automatically deposit money from your bank account, which means you can easily profit from this。

4.Balance。A diversified portfolio is one of the foundations of an investment life, which is an important thing to consider in your 20s。This portfolio can balance your investments and keep your investment income growing without exposing yourself to too much risk。Investment diversification doesn't eliminate risk, but it can help mitigate the damage caused by bear markets。

To build a balanced portfolio, you may need to mix some high-risk investments (such as stocks) and low-risk investments (such as bonds)。You can also diversify across a wide range of asset classes, such as investing in small and large companies, or technology and pharmaceutical companies。

Be aware that diversification means that your various investments may grow or decline at different rates。While there is no official timetable for rebalancing the portfolio, once a year is a good option。

Given that investing can be overwhelming, people's experiences in today's markets around the world are fraught with unprecedented challenges and opportunities.。Don't forget that diversification doesn't ensure profits or eliminate the risk of investing。