How to Start Saving Money In Your Twenties

How to Start Saving Money In Your Twenties
  • Opening Intro -

    Finance is a sector that affects us in our day to day lives starting from children going to school, the youth and adults who are eager to invest and the older people who are waiting for their retirement benefits.

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Finance is a sector that affects us in our day to day lives starting from children going to school, the youth and adults who are eager to invest and the older people who are waiting for their retirement benefits. Statistics show that 44 percent of young people aged 18-24 have 0 dollars in their bank accounts or have not even opened up a bank account.

This trend is not only common to the youth but has also extended to the adults beyond the age of 35 where a survey by GOBankingRates survey indicates that 62% of adults possess less than 1,000 dollars in reserves. Here we take a closer look at the youth, especially to those who are in their 20s’ on how to save money.

1. Developing a marketable expertise.

Most of the youths are either in college or in their first job when they hit their twenties. Developing a marketable skill is important for those who hate their jobs or want self-employment. Expertise does not only include the development of a completely new skill but it can also include enhancing your current skill may it be an occupation or otherwise.

2. Having a budget.

A budget reduces the risk of overspending exclusively to first time earners. Receiving your first cheque and budgeting it can make the difference between saving, paying up your bills or taking it all down the gorge with pals in your favorite pub. One should learn to live and spend within his or her financial limits.

3. Insurance.

Insurance is important due to tomorrow’s uncertainties. S**t happens and one should visit a trusted insurance to get insurance covers. They range from your phone to cars and houses. Insurance covers an individual from spending a large sum of money at once especially when calamities such as car accidents or fatal illness happens.

4. Having emergency funds.

This is emergencies covered by the insurance cover. It’s also known as the rainy day fund. It’s advisable to keep away at least 10% of your earnings. This funds can be of use especially when making up for debts or accidents that have gone against your insurance coverage policies.

5. Building up a credit history.

A credit history is most important when there is need to secure a loan through credit cards “spending beyond what you have”. Of course, a credit history cannot be given unless you have credit first. This comes from money saved with your preferred bank. Other factors include;

  • Saving for retirement.
  • Building emergency money.
  • Making debt repayment plans

Among many others.

Although some quotes and sayings can discourage saving among the youth, those who are focused on having a brighter tomorrow should not take their eyes off the prize. Quotes such as ‘YOLO’ meaning you only live once and quotes ‘We are not trying to live with safety nets; we are trying to live on the edge’.

What every young person should know is that financial freedom is not a destination but a journey which starts from the day you drop that spending habit and save the first penny in a bank account.

Image Credit: Pixabay

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Last update on 2018-12-09 / Affiliate links / Images from Amazon Product Advertising API

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Categories: Savings