Budgeting

10 Tips to Spend Less in Your 20s

Ah yes, your twenties!! You are full of youthful enthusiasm, ideas, energy and a sense of being superhuman. Don’t let money issues trip up that momentum. Making serious money mistakes in your twenties can dog your financial outlook for tens of years.

Here are 10 great tips and practices for saving money in your twenties:

1. Prioritise money saving, not spending

Open a savings account and commit yourself to a certain amount out of each pay check to go to that savings account automatically.

2. Live below your means

What does that mean? It means you should always guarantee you have more money coming in than going out. Make sure your rent and groceries won’t exceed your income.

3. Avoid new cars

Unless you are part of a minority who can buy a brand new car in their twenties then you should buy a used car. You can purchase your dream car when you are older and more stable.

4. Avoid impulse buying

What is impulse buying? In a nutshell, an impulse buy is something you would never have bought, weren’t even thinking about, but there it sat on the shelf; bodacious and shiny, and you had to have it.

5. Cut the cord on credit cards

Yes, I know, it’s very flattering to get tons of credit card offers as you are starting out your independent financial life. However, it is important to keep your limits on those credit cards low. High credit card limits are a disaster waiting to happen.

6. Create and feed an emergency fund, beyond your savings account

Part of maintaining a healthy budget for yourself involves having an emergency fund. This fund will carry you over a cash crisis without you having to wipe out your savings account.

7. Set financial goals, both long and short term

They can be as simple as: I would like to put four thousand dollars in my savings account over the course of 2017. Or they can be more complex: I would like to save thirty five thousand dollars over the course of five years so I can put a down payment on a house.

8. Work out for free

If your gym membership is taking up a little too much of your budget, cancel it and look for free or cheap ways to work out. You can go for a walk with a friend or bike outside and listen to yoga podcasts or watch YouTube workout videos from home. You might find that you love doing lunges by yourself in your living room.

9. Create weekly meal plans

Grocery shopping without a plan could lead you to make impulse buys that just end up in the trash. Save money and eat healthier by planning your meals. Use an app like MealPlan Meal if it helps, and make big meals in a slow cooker so you have plenty of leftovers.

10. Be financially responsible and mindful

If you are practicing all the above financial habits, paying your bills on time and being cautious with your money should be effortless. These are patterns around money that will stay with you no matter what your age.

Your twenties are a great time for learning, working and having fun. However, if you find yourself short of money and need a short term loan to help with student expenses or any emergencies, please contact us.