Saving money should absolutely be a priority in your 20s, but for many people it’s not. Around 45% of millennials aged 18 to 24 have as little as $0 in their savings account, or they don’t even have a savings account.
Saving money when you’re young is important, because one day you’ll want to buy that house, fancy car or even retire early. These strategies will help you get started with saving. Believe me, starting out is the hardest part, once you get going and you see that number grow every month, it becomes a bit addicting!
Send some of your paycheck directly to your savings account
If you have a fulltime job, it’s important to know how much money is going in and going out every month. Ideally, you will have some money left. Whatever is left can be put in two categories: ‘fun’ money and savings. Figure out how much you want to put into your savings every month, and set up a direct deposit, so it goes directly in your savings account.
Wait before making big purchases
Do you really need those $200 shoes? that $500 handbag? I know that voice in your head tells you to treat yoself, but it might be better to wait a little – even if it’s just 24 hours. I started doing this a while ago, and it has helped me a lot – I usually don’t even want the item anymore after a few hours.
Don’t cheap out on insurance
Wherever you are in the world, I believe you shouldn’t cheap out on insurance. It might suck to pay the monthly bills, but it sucks a lot more to pay for something out of the pocket when you need it. You never know when you will need that trip to the emergency room or you accidentally set your apartment on fire.
Survive on Netflix
If you know me, you know I don’t pay for things like cable television. It’s just not worth it for me. Instead, I survive on YouTube and Netflix, and it’s going surprisingly well! It’s very interesting, but not watching cable news has made me much less anxious too.
Make a debt-repayment plan
There’s actually an entire blogpost coming about this subject, but I wanted to mention it here too. If you’re in your 20s, there’s a big chance you have some (or a lot of) college debt you need to pay off. Make sure you have a good payment plan in place once you start making money. You should know when you’re going to pay, how much you’re going to pay and when you should be done paying. If you’re in the US, consider programs that can help you reduce the burden, such as the Peace Corps.
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