Everybody needs to save money—it doesn’t matter if you’re in your 20s or your 70s. Even so, it can be easy to neglect your money-saving goals when you’re younger and have more of an opportunity to spend than save.
That’s why we put together this list of eight tips for how to save money in your 20s . Armed with these tips, you should be well on your way to making some headway in the area of saving money. Happy saving!
The #1 rule for saving money
The number one rule for saving money is to live below your means. This means not buying things you don’t need and not spending more than what you make.
Think about what you want most out of life and how much money that would take to make you happy, then work backwards from that number to create a budget for yourself.
Put money into savings automatically by setting up direct deposit with your employer or paypal account so it’s taken before you have a chance to spend it.
Put some aside in an emergency fund as well. Make sure the rest of your income goes towards bills and obligations first, then other necessary expenses (e.g., groceries) second.
Finally, spend on the things that really bring you joy (e.g., travel). Finally, make it fun!
Earn more
One of the best ways to save money in your 20s is to get a better paying job, but sometimes that’s easier said than done.
If you are currently working and looking for a new position, it might be worth checking out Indeed or Glassdoor to see what jobs are available in your area.
If you’re not working, then try applying for a few part-time jobs on those sites as well.
Just by adding a few hours per week, you could earn an extra $1,000 per year. That’s enough to put $100 per month toward debt repayment or savings!
Another way to increase your income is through side hustles like freelancing.
Check out platforms like Fiverr, Etsy, TaskRabbit or Upwork for opportunities. Finally, if you want a raise at work, start by asking yourself this question: Am I doing more than I am getting paid?
If not, set up a meeting with your boss and let them know what you’re doing outside of work to better yourself professionally so they know how much value you bring to the company.
Learn how to cook
Cooking your own meals can not only be rewarding, but it can also save you a lot of money.
With the cost of living increasing and the paychecks staying stagnant, it’s more important than ever to find ways to save money.
Cooking at home will allow you to avoid going out to eat and spending your hard-earned cash on food that is often overpriced for what you get.
Furthermore, cooking at home means you know exactly what goes into the meal you’re eating, which cuts down on the risk of consuming something unhealthy.
Finally, once you become proficient in your skills in the kitchen, there’s no limit to how much money you’ll save!
Make a budget
The first step to getting your finances in order is making a budget. This should include the five following categories: housing, transportation, food, entertainment, and clothes.
Add up how much you spend in each category per month and then decide what you want to cut back on or what you want to spend more on.
Remember that your budget can change as your income changes! It’s always good to update it when there are major shifts in your expenses, like when you get married or have kids.
It’s also a good idea to revisit it once every six months at least so that you don’t forget about any of those pesky little expenses.
Cut down your vices
Save money by cutting down on your vices. Cut back on the number of drinks you buy each week, and make your own coffee. It will save you a ton of money in the long run.
If you must indulge, do it responsibly. Keep track of what you spend with an app like Mint or an old-fashioned notebook for tracking expenditures.
Track not only where you are spending money but also why you are spending that money. Do this for at least one month, and be honest about every expenditure. Then examine how much is going towards needs versus wants.
Shop at discount stores
One of the best ways to save money is to shop at discount stores. You can find the same items you would at a department store for a fraction of the price.
Plus, you get to feel like a kid in an adult world and it’s fun! Sometimes these stores don’t have as many brands to choose from but that’s not always a bad thing.
We’re all guilty of sometimes over-buying makeup just because we love trying new brands out.
But if you want to save some dough, try buying cosmetics at drugstores instead of high-end boutiques. Not only will you be saving money but drugstore products often work just as well if not better than pricey ones.
Use online coupons
Online coupons are a great way to save money. The best part is that you don’t have to clip them or print them out, because they’ll be accessible from your phone.
If you’re in the grocery store, for example, and you need something like toilet paper, type toilet paper into Google, and then there will be a list of all the online coupons for toilet paper that you can use in stores near you.
You can also download an app on your phone called Ibotta which gives you cash back when you buy certain items at grocery stores. It’s super easy!
Workout at home
Working out at home can be an affordable alternative to going to a gym. You can get a workout in with just your body weight, and all you need is a floor space and some free weights.
If you have a little more money, invest in some fitness equipment. There are plenty of exercises that require nothing more than dumbbells or resistance bands.Get creative!
Turn off the lights in your room when you sleep:
Cutting back on those electricity bills can really add up over time.
Turn off the lights when you’re not using them, make sure electronics are unplugged when not charging, use battery-powered appliances as often as possible, turn off the computer monitor when not using it
(The monitor sucks up energy while it’s turned on but without anything running on it), don’t leave chargers plugged into outlets if they’re fully charged.
