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Often, when we're in our twenties, we're too busy with other things (work and socialising mainly) to give much thought to finance. Either that, or else we're bogged down in the mire of paying bills and are finding it a constant challenge to cover credit card, student loan and rent payments. However, if you are able to devote just a little time to thinking about your financial future, then this can help you reap huge benefits in the future.

As a starting point, it's important to get your short-term finances under control and that will normally involve a commitment to budgeting and to cutting down on regular costs. This article, however, is about financial planning rather than budgeting so let's look at the things you can start doing in your twenties to lay the groundwork for a more comfortable financial future.

1) Start a pension:
Retirement might be a long way away, but with pensions the earlier you start making contributions, the bigger the end sum will be. If you're not in a company pension scheme, then you should consider taking out a personal pension. Pensions are also a tax efficient means of investing for the future. Starting a pension in your twenties will make it much easier to have a good retirement income than if you leave it until your thirties or forties.

2) Build up a savings balance.
Having a reasonably sizeable savings balance has several benefits. Firstly, you will benefit from interest, meaning that your money begins to create more money for you. It's important to select a savings account with a good interest rate and look to capitalise upon any tax-free savings options. (In the UK, for example, savers can put money in an Individual Savings Account and get interest free of tax). A second benefit of building up a savings fund is that it helps to safeguard against unforeseen emergencies. For example, medical fees, or the possibility that you might lose your job. The importance of contingency savings has become all too clear in recent times as the effects of the credit crunch have bit.

If you have started a family, you may also want to set up a fund for your kids. Paying in just $100 a month would give them a very good balance by the time they are 18.

3) Consider building a share portfolio.
Shares have tended to outperform savings account over the past several decades. There is the potential to get capital growth, as well as dividend payments. However, offset against that is the increased risk - the value of your shares could go down. A sensible

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