The 20s is tough and special, we all know as we do our “firsts” in it. We do things for the very first time. We stay far from OUR house, we actually start learning things on our own. And many of us start a 9 to 5 job and encounter it. At the end of the day, we all want to give rewards to ourselves. We all actually just love to spend money on things, or ourselves. But we forgot to save that, we actually need some money saving tips.
Financial planning in your 20s
It’s true! We all enjoy doing parties on weekends (or sometimes on working days too) just for our relaxation. Parties and all is good but we need to do financial planning in your 20s. And also think of saving some money for the future too. Life is short but it doesn’t mean we will spend our cash like that only. Financial experts say it’ll all work out easily as long as we put aside some money every month. So here, I’ll share some money saving tips with you that will definitely help in your life.
How to be smart with your money
Now the question arises is how to be smart with money in your 20s, how much money should a person use in a month and how much should he/she have to put aside?
So the experts say, people who have money and will probably continue to have money. Now, how is that possible? So the answer is by investing, hiding from your eyes and obviously by saving. A person should have his/her 3 months of salary in his/her bank account for emergency stuff. No one knows what will happen to him in the next minute. Thus, there’s no way to plan for every emergency. It can come to you ANYTIME whether an urgent visit to somewhere out of the station. Or your house got stolen, any serious health problem but having some sort of fund can help mitigate the damage.
Amount of money a person should use in a month
Now, the next question is how much money should a person use in a month? Taking care of every essential thing, a person should use only 75% of his salary on himself/herself and put the rest 25% of his salary in the jam jar. You should not be spending more than 75% on your necessities ( that includes phone bills, electricity, household things, travel, parties etc.). If you get the habit of saving your 25% of salary every month then no one can stop you from saving loads more in the future as your income increases.
Be money savvy
Another best way to be money savvy is to automate the process by setting up monthly (or weekly) debit orders to your savings accounts. All you have to do is enter the amount of money you want to save each month, this will automatically push the amount you choose. It is a clever way of making sure you can’t spend it. Choose a bank account with low or no fees, a high-interest rate for your savings. By this, you’ll be making money on whatever you’re putting away.
Can you make this budget work? Definitely, but it also requires some sort of sacrifice on your end. Look, there is no time better than present to start saving. It will set you up for the future and provide a safety net when life is on the harsh turn. This imaginary budget just goes to show you that those finance experts aren’t simply off their rocker when they recommend saving this much for your retirement or emergencies. Being money savvy also gives you some freedom to make choices based solely on what you would like to do. Hence, start saving money that will give you choices in the future. Stop spending money on useless things.
It’s the best time to think about something big today. It’s like now or never. I hope you like these money saving tips. Do share your views in the comment section and tell if you have any other tips for us.
Also, if you love to do online shopping but on the same hand, you want to save money then these Online shopping money saving tips will always help you.