So you want to start saving but don’t know where to begin? Well you came to the right place, and you can start right here. This is a guide to help all you 20-somethings of the world start saving toward your goals. Whether you’re a college student who needs to save for tuition, a recent graduate who needs to save for your first apartment or a newly employed professional who wants to save for your first vacation, we have money-saving tips for 20-somethings of all shapes and sizes.
Set a goal
The first step in beginning to save money is to ask yourself why you want to start saving. What are you working towards? Once you have a goal set in your sights it’s a lot easier to stay motivated and keep saving.
It’s not enough for us just to tell you how to start saving, you have to want it. Setting realistic goals with achievable dates and savings amounts that fit into your budget can really turn your dreams into goals and your goals into reality. If you want to travel to Asia, research how much it will cost and set your goals from there. It’s always easier to work towards a goal when you know it’s realistic.
Change your habits
One of the best money-saving tips for 20-somethings is to just flat out make changes to your spending habits. If you usually buy two cups of coffee every day, cut it down to one. If you usually grab take-out food on the way home from work try cooking dinner at home a couple of times a week to save money.
Every time you change your habits to be more savings-savvy, take that extra money and put it aside, either in a bank account or in a money jar. Trust us, a little savings here and there will quickly add up to a big chunk of cash.
Make small cuts
This is the worst part about trying to save money in your twenties. No one likes to give up something they love, but the truth is you can’t expect to save more money if you don’t free up some of your income. You know, they say the definition of crazy is doing the same thing over and over again but expecting a different result. You don’t want to be THAT person do you?
We didn’t think so. Sit down and look at your spending over the last month. Find patterns and determine where you can make cuts. You may think you’re living on the bare necessities but trust us, money can always be cut somewhere, somehow. If you’re not sure how to get started try using a budget calculator. Sometimes it’s easier when you can see everything in black and white.
Add an extra $5
Saving money doesn’t happen overnight. The truth is that in order to save more you have to spend less. Once you’ve set your goal and you know what you’re working toward, you can change your habits and make cuts in your spending.
Saving money is like working out-- just when you think you can’t possibly push any harder you do another five reps. It’s the exact same thing with savings. When you’ve set up your weekly savings amount add an extra $5. Just that little bit extra will push you towards your goals even quicker. An extra $5 a week is $260 per year, and we can all agree that extra money can come in handy when saving for your goals.
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Consumer Education Services, Inc. (CESI) is a non-profit service provider of comprehensive personal financial education and solutions for all life stages and for all of life’s milestones. Our goal is enhanced economic security for everyone we serve.
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