Whether you’re just starting out or looking to improve your financial knowledge, there are steps you can take to improve your finances.

Thinking about personal finances can easily become overwhelming. Many members of Generation Y and Z are dealing with student loans , the high cost of living , the challenges of the housing market , and a general sense of financial anxiety.

Everyone experiences their twenties and thirties differently. Some are saving for a mortgage, while others are struggling to pay rent. Some are spending all their time on dating apps, while others are trying to figure out how to raise a child. Our series on 25- to 35-year-olds explores your everyday challenges and issues.

1. Make a budget

You might discover, as my husband did when he was a graduate student, that a third of your food expenses go to coffee.

Once you know what you’re doing with your money, you can cut back on some of your expenses and ensure you have money left over each month to pay off debt or save. To do this, it’s essential to create a budget.

Asking your employer for a raise can be intimidating, but you’re much more likely to get one if you take the time to do so. Then, practice your request with a mentor who has reached a higher level in their career.

2 . Build up a good pension

These days, these benefits are less common. According to a recent World Bank report , nearly half of gig workers worldwide don’t have a retirement plan; this figure reaches as high as 75% in some countries.

Find out if the company you work for offers a defined contribution pension plan. In this system, both the employee and employer contribute money to a savings account that grows over time.

Even if you don’t have access to such a plan, you can replicate one of its key features by setting up an automatic monthly contribution to an investment account using a robo-advisor .

You should also consider allocating this investment to a well-diversified stock index or a mix of stocks and bonds if you are risk-averse. An exchange-traded fund (ETF) is a low-cost alternative to buying mutual funds.

3. Aim for stability

Once you set up automatic contributions and develop the habit of increasing them over time, you’ll see your investment account balance grow. Even starting with small amounts each month will help you establish good financial habits.

Your next mission will be to avoid the temptation to follow the ups and downs of the financial markets by actively trading. To avoid this common trap, don’t check your investment account balance every month and continue to contribute regardless of how the financial markets are doing.

Interestingly, overconfident investors often have lower returns than the market average when they make many transactions. Successful investors have realized that they can grow their wealth by adopting a long-term investment mindset that involves acquiring assets with the intention of holding them for a long time rather than buying and selling them frequently.

4. Imagine the future

It can be difficult for young people to identify with an abstract version of themselves in retirement. Their old age is still a long way off, and they may feel they have an eternity to prepare for it.

However, studies show that the more we can mentally picture our future selves , the more motivated we are to make wise savings and retirement planning decisions for them.

Try to imagine what your life will be like when you retire, or what you will look like. Will you have gray hair or wrinkles? What will you do with your time?

Take up the challenge

If you feel overwhelmed by this advice and don’t know where to start, consider contacting an independent financial advisor who will analyze your situation and provide you with personalized advice.

Remember that whatever financial challenges you may face, this is simply another opportunity to overcome obstacles. With the right strategies and support, you can build a more secure future.