Saving Money in your Twenties
“We never truly grasp the concept of a dollar until we start spending our own.”
-Danielle Hadley
It’s true, once we are out on our own in the real world, we begin to understand how expensive life really is. Our parents were telling us the truth all along! Living on your own and managing your finances can cause a lot of growing pains. I know this first hand. But learning to balance money with your lifestyle is going to make saving money in your twenties-- so much easier.
Let’s start with what we spend our money on:
Bills
Groceries
Insurance
Gas
Rent / Mortgage
And these are just the necessities for everyday life!
Now let’s throw in more expenses:
Dates
Going Out
Restaurants
Movies
Traveling
That’s a lot of money for a twenty-something, fresh out of high school or college with an entry level full-time job. So, the questions we all ask ourselves are:
How can I survive? How can I save money? How can I budget?
I’ve heard millennials complain about not being able to save money, because we don’t “make enough”. Is it really that? Or is that because we have high expectations and expensive taste?
You CAN be financially stable.
You CAN be debt free.
You CAN live a successful life.
I am not a financial expert, but over the past seven years I have lived on my own, paid bills, and budgeted my finances. I have learned many lessons along the way. I want to share with you the steps I’ve taken that will put you on the path to saving for your future and ultimately finding financial stability.
1. SAVE, SAVE, SAVE
I know an obvious one, right? But so many millennials aren’t putting back money for their future. Open a savings account at your bank, start a 401k, or open an IRA. You could even put spare change in your piggy bank! Just do something to SAVE. Your future self will thank you. By saving you’re able to plan your retirement and it’s also great to have extra cash for the things that go unplanned. Life is unexpected so always be prepared for an extra bill or an emergency. You don’t want to be left in a stressful financial situation and worry about how you’re going to pay for it.
Overall, I save more money than I spend. This has given me financial security.
I have a savings account at Chase and I am going to open my 401k soon. So I am on the right track to putting money back for the future.
Some might say I am too tight with my money,
I say I am very responsible with my money.
I know it can be hard to save while paying so many bills, including student loans. But putting back a little bit each pay check will be beneficial to you later.
For further information on opening a savings account or an IRA just contact your bank. They would be happy to give you information and provide options they hold at their branch.
2. Budget
Budgeting is an important part to becoming financially secure because you obviously can’t save every dime you make. By budgeting you can plan out your finances ahead of time. This will keep you on track with bills and it will also put insight on how much money you can put back each month to save. Start by writing down all your expenses to see how much money you have going out each month. Next, write down how much income you have each month. This will put into perspective how you need to budget your finances to reach your goals. You need to know where your money is going to keep your finances in order.
3. Treat yo’self – Responsibly
Don’t get me wrong I’m all for “Life is short, buy the shoes”. But also be self-aware when spoiling yourself. Don’t buy something on a whim, always be practical with your purchases. If you REALLY love the shoes get them—you’ll find something to wear them with. But if you pick something up and wonder how much you would use it, you probably don’t need it. When you have the extra money and do want to go on a shopping spree-- plan it into your budget. Live your life but also be responsible. Always make sure your bills are covered FIRST, before spending money on luxury items. If not, bills will be late, and you’ll be racking up debt. This is detrimental to your bank account and credit.
Don’t spend money if you don’t have it. Simple as that.
4. Work Hard
Life isn’t always going to be easy, but if you work hard, I truly believe anyone can be financially successful. First, if your job offers any over time—take it. Most of the time you’ll be paid time and a half or double time. That’s an easy way to add more money onto your check each week. Second, always be willing to learn at your job. If your supervisor sees potential in you, you could be offered a higher paid position or even be rewarded a raise.
Cha-Ching! That means more income
and being able to S A V E!
Growing up I was taught to do the best I can at anything I do and to work hard for the things I want. Motivated and hardworking individuals reach their financial goals. It may not happen today or tomorrow, but if you keep working hard you will become successful. It just takes a little time and a lot of hustle.
Saving money as a young adult can be difficult. But if you take my advice, I promise you’ll find yourself in a better financial situation than you were before. Financial health is real and very important. Just keep your goals in mind, work your butt off, and everything will fall into place.
And like I said if you have any questions about different savings options contact a professional because they can advise a path that is suitable for your current financial situation. If you have ANY questions for me, don’t hesitate to ask. I have been crazy about saving my money and chasing financial independence since my first job in High School... at McDonalds! haha
Overall just stay focused on your goals because that will ultimately lead you into making the right financial decisions for yourself now and for your future.
Believe in yourself. Work hard. Don’t give up. Make that money honey.
Xo,
Dani Kaye