Saving and spending money in your 20s is something we all struggle with. I always say this, but the American school system has failed us and does not teach us what we need in life. We are not given the proper tools to succeed in life. We learn to take tests, remember and regurgitate things on paper, and we are graded on that, but we are not taught the basics.
Some of the things on our lists may seem obvious, but some people don’t realize that, and that’s why it’s critical to educate people about money. That’s why it’s essential to educate people on spending their money wisely. So, without further ado, let’s dive into this blog and learn some things about money that we think everyone should know or at least know about.
1. Start a savings group
Two is better, and a group is even better. Form a savings group with like-minded people (friends, colleagues, or family members) that meets regularly to review and support each other. It’s much easier and more fun to set and stick to financial goals with a group you enjoy being a part of.
By talking openly about your financial goals, you’ll immediately feel supported and can benefit from the experience of others. Do this with people you trust, like your sibling, best friend, or partner. Trust plays an important role when it comes to starting and maintaining a saving group.
2. Talk to your service providers regularly
Put the numbers of your service providers and credit card issuer in your speed dial list and call them monthly. Ask them regularly if your plan is the best fit for you and if you could save money in any way. You could save over $50 a month.
There is no shame in talking to your bank because they are there to help you, and you can ask for their help. As annoying as this might seem, you are paying for these services, so make the best of it. Being shy won’t get you far; you should be using everything at your service to get ahead in life because it’s a dog-eat-dog kind of world.
3. Use coupons
Honey is an application or chrome extension that will save you money. Honey automatically searches the web for coupons and applies them to your online purchases, this means you will save money on all your purchases, and you just need to install it to enjoy its services.
Honey, or coupons, simultaneously save and encourage people to spend money when they shop online because they know they are not paying full price for a product, which means they can buy more things.
4. Manage your money with ease
For every dollar that comes in, 60% pays your living expenses. With this money, you pay your rent, electricity bill, and other necessities. 10% goes into your savings for emergencies. This is your safety net in case something unexpected happens.
It could be medical bills or other emergencies. Usually, you don’t want to touch this money at all. I recommend that you create an extra account for this to stay disciplined and not touch it. 10% goes into investments. Another 10% goes towards your learning. You spend that money on coaching, seminars, books, etc. And the other 10%? It goes towards your fun!
If you implement this and stick with it, you will never spend more money than you have. To ensure this, you want your money management system to work automatically. If you have to sit down and do it manually, it won’t happen. I can almost guarantee you that. So talk to your banker about it. Maybe they’ll look at you funny and wonder why you need five different accounts. But that doesn’t matter in the grander scheme of things. You want to build your habits.
5. Don’t focus on the numbers first
People who are successful in achieving their financial goals think first about why they set those goals and what they want to achieve. Want to travel debt-free or buy your first home? It doesn’t matter! Think about your goal in broad terms first, rather than lining up numbers and thinking in terms of money. Write down your goals, make them a Pinterest board, talk about them, bring them to life.
Then you’ll be much more likely to adopt sustainable changes and achieve your goals. After that, saving money will become easier because your goals will be clear. In fact, you’ll be more motivated to save and avoid unnecessary spending because with a project you care about under your belt, it will help to get your priorities in order.
Your 20s is the time for you to have fun but it is also the time to start saving for the future. But I also believe that we are here for a fun time not for a long time. Sound off in the comments section below and tell us what you want to read next and if you want to read more about spending your money wisely.