Isn’t it fun to be in your 20s? The newly found independence, the joy of adulthood and the ever-changing career exploration. While all this can be exciting, it is also vital to have financial stability starting at a young age.
Multiple portals are talking about the same, so let us give you some simple and not-so-tedious tips on saving money the best way in your 20s. Also, don’t miss out on the bonus tip at the end –
1 – Welcome the concept of budgeting
Flooded with multiple options, creating a budget may seem like a difficult task, but trust us, you really need to make one to lay the foundation of your financial stability. Establish a budget to track income and expenses, and categorise your spending to limit unnecessary spending. Self-awareness is the first step towards savings, so don’t do the girl or boy math here. If you find it difficult to do it, get help from some budgeting apps to make the process simpler.
2 – Utilizing Financial Products for Your Gain
With such technological advances and the digital revolution, the way we handle money has changed. You can use the financial products in your favour by utilizing Unified Payment Interface (UPI), digital wallets and platforms to track your spending. When you link your bank account/accounts to these platforms, it improves financial transparency.
3 – Invest Early
This one is the trickiest tip, where to invest and how to invest is the most common question every individual in their 20s asks. Investing is a task, but it is also the first important step towards multiplying your wealth. In your 20s, you should focus on long-term investments like mutual funds, Systematic Investment Plans (SIPs) and Public Provident Fund (PPF). Start with small amounts, let your portfolio grow, and in time, you will see the fruit of your compound.
4- Smart Spending
Genius is not figuring out how to make a budget, Genius is the person who has figured out how and what to spend the money on. Being in your 20s also means that we go on multiple shopping sprees and various impulse buys, which we later regret (none of us will agree, but deep down, we do). So, identify your wants and needs and practice mindful spending. Also, look for pocket-friendly alternatives that won’t create a hole in your wallet.
5 – Go Local instead of Global
You might hate us for this, but going to those expensive concerts is not the right financial decision. We love entertainment and understand socializing is an integral part of your 20s, but we also know that it shouldn’t put you in debt or break the bank. So, opting for local events and activities that align with your interests could also be a great way to learn new things about your city.
6 – Build an Emergency Fund
Last but not least, build an emergency fund, and to do that you can simply follow the 50/30/20 financial rule. Build an emergency fund for three to four months of living expenses, it will help you stay afloat at times of uncertainty and provide you financial safety.
We’ve prepared you to embark on this adventurous and thrilling journey of managing your finances in your 20s, with tips that could help you change your financial habits and lead you to a more financially secure future. You are onto a great path of financial success, my friend!
