Top 10 money saving tips for 20-somethings
As an earner in your 20s, you may be tempted to splash the cash. After all, this is the first few years of earning a regular salary and it may still feel new and exciting. You might finally be able to afford a car, or if you’re lucky and have been saving well, perhaps even a house. Here are some tips to managing your money in your 20s, and what to avoid along the way:
Don’t take on too much debt – One common (and really big) set back in your 20s can be taking on too much debt. Of course, this doesn’t mean all debt. Some debt is helpful – for example, a car loan so you can get to your new job, or a credit card to help you make some big purchases for your home. Check out the full top ten list of tips here but if you’re only after the list of it: just be sensible. They advice, “Once you start earning your first paycheck, opening store accounts and taking on debt to service your lifestyle can be tempting. When taking out a loan, make sure that you can afford the repayment terms. Don’t take on more debt than you can comfortably repay.”
Get the right bank accounts – Don’t just stick with the same bank account that your parents opened for you when you were a teenager. Find the right bank account for you. Some accounts give you money, or cashback when you pay your bills from that account each month. It may not sound like a lot of money at first, but this really does add up in the long run.
Save – make sure you save for a rainy day. There are easy ways to save money, even if it’s only a little every month. Look at some of these tips to saving money. Even if you’re only putting away £20 a month – it can really add up over time.
Have fun, but don’t blow it all – Of course, you want to enjoy your money, but blowing it on unnecessary things just won’t help you in the long term. Try and be sensible and thoughtful, as well as mindful of your future. You don’t know what it might hold, so you’ll want a nest egg – however big or small, to fall back on if you need it. Avoid several holidays a year, excessive shopping or other expenses which are not a necessity.
Get insurance – It’s important to get insurance when you start earning money properly. Think about life insurance, contents insurance and so on. It is worth covering yourself against any risks or accidents so that you don’t have to pay out a large amount of money if anything untoward should happen. This is especially the case with mobile phones, which can be worth so much money and cost you a lot of money to replace.