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How to Save Money in Your 20s

07.13.2020 by admin // 6 Comments

Saving money in your 20s will help you achieve financial stability. A lot of people in their 20s are dealing with student loan debt and aspiration for days of having a strong financial cushion and achieving their dream lifestyle. While it’s easy to think that financial planning may be pointless at this stage, the baby steps taken now will create a financial foundation. Increasing your income is most important, but spending less than you make is a close second. Increase your income, be smart with your spending, save money and invest are the recipe for success. Here are tips on how to save money in your 20s to set the stage for a strong financial future.

Increase Your Income

It’s not about what you make, it’s about what you spend is true. However, it’s a lot easier to save money when you make more money. Your lifetime earnings are decided in the first decade of your career. As a result, increasing your income in your 20s is especially important.

There are several ways to increase your income. First, hustle at your job and create a plan to double or triple your salary. This plan may include strategic networking to get promoted or switch industries, identifying what you need to do advance your career, get another degree and / or expand your skill set. Second, build additional streams of income. In order to begin generating passive income, you need to have money first. To build wealth quicker, start a side hustle in addition to your day job. As your income increases, keep your spending flat. This will allow you to save even more money in your 20s.

Save Money In Your 20s by Being Frugal

Now that you’ve focused on making more money, how do you avoid spending your entire paycheck? Control your expenses. Do you make more money than your friends? Doesn’t matter, spend as if you make less. Consistent saving and investing, especially in your 20s, can be an effective way to accumulate wealth. The more you save in your 20s, the less you have to save later in life due to compounding. See how even small savings amounts can add up over time with this compounding interest calculator.

In your 20s, this means being frugal for a few years. You don’t have to be frugal forever. The longer you’re able to live frugally like you lived in college the easier your finances will be. Being frugal also doesn’t mean never having fun. You don’t have to cut back in all areas either, the single most important expense is housing.

Save Money On Housing And Live with Roommates

Some of the best ways to save money in your 20s include being smart with housing. Housing is likely the largest expense in your 20s. Once you sign a lease, you’re stuck with that expense until your lease ends. Don’t become “house poor.” Experts say housing should be no more than 30% of your gross income and that includes all housing expenses. However, this doesn’t mean you should spend 30% of your gross income. The less you spend on housing the more money you’ll have available to save, pay down debt and spend on other things you enjoy. Want to live in a certain location? You may have to settle on the amenities and living with roommates.

The most sure way to save money on housing is to live with roommates. Not only are you able to spend less per month on rent, you’re also able to split utility bills, and split buying the furniture. It’s expensive to furnish your first place. Splitting these costs will save you a ton of money the first few years and enable you to start building a savings cushion. Bringing your own lunch can save $7 / day or $140 / month. Being smart with your housing can save you hundreds a month and thousands a year.

Buy A Used Car or Skip The Car Altogether

The next biggest cost you’ll likely have is transportation. Sometimes, a car is unavoidable. You need it to get to your job and back. But, with remote working increasing, public transportation and rideshares becoming more available can you skip the car for a year or two for a little inconvenience?

Before you buy a car, do the math. Can you use public transportation, bikes and ride shares? How much will this cost you per month? Then, compare this to how much it’ll cost you to own a car. Don’t forget, the money you spend on a car could have been invested and earning you more money or paying down debt. Car expenses also include maintenance, gas, parking, insurance and depreciation. If you can, skip the car. If not, spend as little as you can on a car in your 20s. You can always get a nicer car when you have more money.

Save Money on Food and Drinks

There are ways save money on food and drink and still have fun. You can still go to restaurants and bars and save money in your 20s. Take advantage of happy hour specials. Go over a friends house and have a drink before heading to the bar. When you get to the bar, limit yourself to one drink. Invite people over to watch sports instead of going to a bar. Take advantage when there is free food at events. Bring your lunch. Set a monthly budget for eating out and going to bars. There are plenty of ways to continue to enjoy eating out and also save money.

Eat at home for all other meals and bring your lunch. Planning your meals and using coupons on groceries will save money. Don’t order takeout and instead save your eating out money for when you go out with friends.

Limiting spending on food and drinks is a great money move in your 20s because it starts developing discipline around spending money. It’s hard to say no to always going out with friends and spending money on food and drink but it adds up. But, this is small amounts of money compared to later on. If you can’t say no to going out to save money, how are you going to do when you’re invited on $1,000+ vacations? Practice saving money here and the discipline will spill over to other areas.

Be Frugal With Your Vacation Spending

The best time to travel is in your 20s when you have less responsibilities and more time. This is also when you have the least amount of money so how do you best balance this? Save money in your 20s by taking road trips. Rent a house with friends to reduce spending on lodging. Split a hotel room with 3 other friends to reduce costs even more. There are also plenty of ways to save money on travel, you don’t have to give up travel entirely.

Another option? Work for a global company and take advantage of traveling for your job. It’s much cheaper to spend 2 extra nights in Europe when you’re flying there for work than paying for an entire Europe trip. At minimum, sign up for every single travel loyalty program. This way, you can accumulate points to use for free nights, free airfare and free car rental days. You can also get a good rewards credit card and redeem for free travel.

Limit Spending on Clothing

When you first graduate college you will need to spend some money on clothing. Your college wardrobe won’t suffice for a professional wardrobe, attending weddings, etc. Spending money on clothes in unavoidable. You can continue wearing free t-shirts for a while at home, at the gym and on weekends but at some point you will want to upgrade there too. When you do spend money on clothing, take advantage of sales. Also take advantage of shopping second hand like on Poshmark and even sharing clothes with your roommates if you can. To start to build a wardrobe, buy 1-2 nice things a year like a good pair of black heels and a nice leather black tote.

Take Advantage of Company Benefits

Salary is important, but don’t forget about job benefits. Job benefits include vacation time, health insurance and 401(k) match benefits but did you know there may be more benefits to help you save money? In college you were able to get discounts with your college ID. Post college, look for ways to use your company ID to save money. Some health insurance plans offer money towards a gym membership every year. Depending on the industry and area, companies may offer free or discounted food, free gyms on-site, discounts on auto insurance, discounts on personal travel and more. Look at your internal company site to learn more about perks offered by your company.

Track, Manage and Reduce Your Spending

Now that you have those saving money tips, know how you are spending your money today. Can you use any of the tips above to save money? You must spend less than you make in order to save money in your 20s. To do this, you need to understand where you’re spending your money. When you just graduate, you’re adding a lot of new expenses. For the first few months, track every expense and see where you’re spending your money. Don’t change any behaviors, only add tracking what you spend and follow how you normally spend your money. At the end of the month look back at what you spent your money on. Do the same for the following month. Are you spending more or less money than you are making? Were all those purchases necessary? How did your spending change month to month?

Create a Budget

Saving money in your 20s starts with having a budget. Create a budget that works for you and isn’t too restrictive, otherwise you’re less likely to follow it. There are plenty of apps like Mint which make this process much easier. First, input your regular bills like rent, electricity, internet, etc. These are all of the bills you must pay. There may be ways to decrease these bills later, but for now put what you pay today. Set aside money for the things that bring you happiness and finally add in everything else. Be realistic too – you’ll need clothes and you’ll be invited to a lot of weddings in your 20s.

It’s ok if your budget is imbalanced when you first add everything together. Budgets take multiple iterations to get right. Keep shifting around numbers until you’re able to balance your budget. If you find that no matter how much shifting you can’t find ways to save money with your current income though then you need to start looking at ways to make more money.

Set a Savings Goal and a Retirement Savings Goal

You want to save money in your 20s, but how much? Give yourself a goal for how much you money you want to save per month. It doesn’t have to be a high number – you can start with even $5 a paycheck and increase it. Use this money to start building your emergency fund, so if any emergencies arise you have cash to cover it. You can find a calculator here to help identify how big your emergency fund should be. And, don’t forget to save enough money for retirement to get your employer match if they offer it at minimum. This graph from Business Insider shows the difference of saving $100 / month for retirement starting at 25 verse 35. The person who started at 25 ends up saving $73,000 more by age 65 solely by starting 10 years earlier. Only $12,000 of that difference is additional contributions, $61,000 is from compounding interest.

One trick to avoid cutting spending is to move more of your saving towards your 401(k) contributions. 401(k) contributions are pre-tax, so you’ll reduce the amount of taxes you owe in your budget. Once you’ve identified how much money you want to save, or can save, automate it! One of my favorite money saving hacks is to automate your savings. Take these steps to automate your savings and watch your savings grow.

Where Do You Put the Money You’ve Saved?

Where should you put the money you’ve saved? Money saved in your 20s should first be held in a high yield savings account as part of an emergency fund. Unfortunately, there have been interest rate cuts across the board including high yield savings accounts, so you won’t make much money here. But, it is better than nothing. Nerd Wallet shares here the top 10 best high yield savings accounts. You can also look for banks offering sign up bonuses.

See Also: How To Invest Money In Your 20s

How to Save Money in Your 20s Summary

How to save money in your 20s can be summed up in a few simple steps. Increase your income and keep your spending flat, saving the difference. Be frugal for a few years. This includes living with roommates and spending as little as possible on transportation. For all other expenses prioritize what brings you happiness and cut back spending in other areas. Set a savings goal and stick to it. Yes, saving money in your 20s is harder than saving money in your 30s. Your salary is lower and you don’t own much yet, increasing your initial expenses. But, your lifestyle expectations are also the lowest. The more you can save when you’re young the easier it is as that savings will continue to generate passive income for you. Set yourself up for success by saving money in your 20s.

Here are more smart money moves to make in your 20s.

Why You Need An Emergency Fund

03.02.2020 by admin // 1 Comment

How much emergency fund, how much to have in an emergency fund, where to keep your emergency fund, emergency fund definition.

Emergencies aren’t a matter of if, but when. When you’re faced with an emergency, having an emergency fund to cover unexpected medical, car, house or other expenses will help minimize the stress during these times. Having an emergency fund with 3-6 months worth of expenses will help you prepare for when an unexpected expense comes up. Learn why you need an emergency fund, how much you should have in your emergency fund and where to keep your emergency fund.

What Is An Emergency Fund

An emergency fund is an amount of money set aside to cover emergencies if they arise. When you first start saving money, the first thing you should fund is your emergency fund. An emergency fund is money that is easily accessible and liquid (such as money held in a checking account or savings account) that you have for when things go wrong. This includes an unexpected health bill, unexpected car repair, if you lose your job and so forth. The golden rule is 3-6 months of expenses but it really depends on your situation. You can find a calculator here to help identify how big your emergency fund should be.

Once you’ve built up an emergency fund you can also use this money to improve your life. For example, moving is expensive. If you aren’t living in the location you want to end up in start building up an emergency fund to pay for the move and the first few months of living expenses.

Why You Need An Emergency Fund

An emergency fund is supposed to be for unexpected expenses, but are all expenses really unexpected? To reduce unplanned expenses, do a bit more analysis and see how you can plan for expenses that aren’t frequent.

Even if you plan for “unexpected” expenses do you still need an emergency fund? The answer is yes. Say you think you’ll have $1,200 in household repairs needed this year. From a yearly budget perspective that averages out to $100 / month? But, what if that expense hits in January? It’s in your budget, but if you were only relying on your paycheck you wouldn’t have the full amount of cash you need until the end of the year. An emergency fund will give you the cash you need in the short term.

Health Emergencies

An estimated 530,000 American families turn to bankruptcy each year because of medical issues and bills every year. Your health insurance may not cover as much as you think. While health emergencies are truly an unexpected expense, having an emergency fund will help you focus on your health instead of worrying about money during this time.

Car Emergencies

If you have a car you know you’ll need to perform regular maintenance. This includes oil changes and emissions tests plus other fees like city stickers and insurance. As a car ages, you should assume you’ll need to replace car parts. For example, car tires should be replaced every 6 years or more frequently if you drive often. Estimate when you’ll need to spend more money maintaining your car so you have fewer unexpected big bills.

Of course, no matter how much you plan there may be an accident. For the unexpected having cash in your emergency fund to cover a deductible will help.

House Emergencies

If you’re a homeowner you should estimate 1-3% of the purchase price of your home every year for home repairs. Plan for this in your budget and if you don’t end up using it set it aside for the next year. There won’t always be a major home repair but you want to be prepared when it does happen. Roofs will need to be replaced every 20-30 years depending on the material. Furnaces should last 15+ years. Homes usually need to be painted externally every 5-10 years.

Knowing when these were last replaced in your home will better prepare for these expenses.

Job Emergencies

You never know if you’ll be laid off, or injured where you can’t work anymore. Perhaps your job has become detrimental to your health or you’re feeling burnt out and need some time off. An emergency fund provides some cushion in case your job doesn’t go as planned.

How Much Money Should You Have In Your Emergency Fund?

There isn’t a one number fits all for how much you should have in your emergency fund. The golden rule for emergency funds has been 3-6 months of living expenses. That way if you get laid off you have money in cash to fall back on. If your money is all in investments you’d have to sell investments to cover your daily expenses.

Use the emergency fund calculator by Money Under 30 to determine what the right number is for your emergency fund.

Another way to look at how much you need in your emergency fund is to determine how much money do you need to feel secure? If you lose your job tomorrow or have an emergency repair such as needing a new furnace or a major car repair what amount of money would make you feel secure?

What If You Don’t Have Enough Money to Fund an Emergency Fund?

The toughest time will be when you get started. If you’re starting in debt funding an emergency fund is even more daunting. Your first thought should be how you make more money. Can you start a side hustle? Make more money at your job? Secondly, look for ways to cut your spending so that you don’t accumulate more debt and put that money toward your emergency fund.

There are always unexpected expenses that arise. If you don’t have money to fund an emergency fund that doesn’t make you immune to an emergency occurring. While you’re paying down debt, you should also contribute to your emergency fund so you don’t have to take on more debt when an emergency inevitably arises. That way, you can avoid having to take out credit card debt at 18% interest when an emergency arises.

Where To Keep Your Emergency Fund

The best place to put your emergency fund is somewhere where you can easily access the funds but not too accessible where you’ll spend it on something else. It’s best to have a separate account so you don’t accidentally spend it. It needs to be liquid because you need it in case of an emergency. A great place to store your funds is a high yield savings account. A high yield savings account is a great place for your emergency fund because there are usually limits as to how often you can withdraw money from a savings account and your emergency fund will at least generate some money. Nerd Wallet shares here the top 10 best high yield savings accounts.

How to Build a Strong Financial Foundation In Your 20s

08.09.2019 by admin // 13 Comments

How to Invest Money In Your 20s, how to save money in your 20s, build wealth in your 20s, smart financial moves in your 20s

Building a strong financial foundation is important at any age, but if you’re in your 20s, smart money moves early on will set you up for success for decades to come. This is true whether you decide to be single, end up with a partner or end up having a family. Increasing your income, investing your money, creating an emergency fund, getting out of any debt and being smart with your spending are all key to be build wealth in your 20s. Here are 13 tips for building a strong financial foundation in your 20s.

Hustle At Your Job

Your lifetime earnings are decided in the first decade of your career. If you went to college and graduate in 4 years the first 8 years of your career will fall in your 20s. Make these years count. Don’t get distracted by spending too much time thinking about how to save money. Increasing your income early on will help you build wealth in your 20s.

Create a plan to double or triple your salary, no matter how crazy that amount may seem at the time. This plan may include strategic networking to get promoted or switch industries, identifying what you need to do advance your career, get another degree and / or expand your skill set. Dream big and create a plan with steps you can act upon to get to that dream. If you only dream it and don’t take actionable steps towards that goal it will always remain a dream.

What if you don’t have the job you want or don’t know what you want to do yet? That’s ok, you don’t need to have everything figured out. Continue to hustle and start to better understand what you don’t like and build your network. Get a career sponsor and a career mentor. It is easier to switch jobs when you have a network that can help you get that first interview.

Begin Building a Passive Income Stream or Side Hustle To Make More Money

Making money isn’t limited to just your day job. Build wealth in your 20s by starting to build a passive income stream. Generating a passive income stream doesn’t require a lot of effort. And, you will have a compounding effect as your net worth increases. It won’t seem like much money as you are starting out. But, it’ll begin good habits and that amount will increase over time.

If you’re in debt or are only beginning to build your wealth generate more money through a side hustle. The amount of money you make in a side hustle usually is proportional to the amount of hours you spend on it. For example, you’ll make more money on Instacart based on the number of jobs you accept. Other side hustles, like writing an e-book, will require a lot of effort up front. Over time, these side hustles will turn into passive income streams.

Invest In Yourself In Your 20s

Investing in your 20s isn’t limited to investing your money. You also need to invest in yourself. You’ve invested in yourself by attending college, but learning doesn’t end there. There are other professional certifications and additional degrees that can significantly increase your earning potential. Investing in yourself in your 20s is easiest when you have fewer responsibilities. This can mean getting your MBA or another Masters degree, getting your CPA, CFA or PMP.

Investing in yourself also isn’t limited to education. Take time to travel and learn new cultures, exercising regularly and eating healthy. Healthy habits also pay dividends in the decades to come.

Start Saving Money In Your 20s

Saving money in your 20s starts with knowing where your money goes, creating a budget and then starting to save money.

Where should you put the money you’ve saved? Money saved in your 20s should first be used to build an emergency fund. An emergency fund is money that is easily accessible and liquid (such as money held in a checking account or savings account) that you have for when things go wrong. This includes an unexpected health bill, unexpected car repair, if you lose your job and so forth. The golden rule is 3-6 months of expenses but it really depends on your situation. You can find a calculator here to help identify how big your emergency fund should be.

Invest Money In Your 20s

Start investing money in your 20s. How much should you invest? As much as you can. That money will compound over time and help you create a passive income stream. You can automate your savings through direct deposit and then invest that money in a brokerage account. There are many potential big expenses on the horizon like a house, additional education, car, family and it’s much easier to put a down payment on a house or pay out of pocket for grad school if you started building your savings on day 1. No amount is too small to invest.

It’s not enough to just save money though, you also need to get your money to work for you. Invest your money in stocks, ETFs, mutual funds and bonds.

See Also: How To Invest Money In Your 20s

Build Wealth In Your 20s By Saving for Retirement

The easiest way to build wealth in your 20s is to save for retirement. Companies offer 401(k) matches and your contributions are tax free. Without question, take advantage of your company 401(k) match. This is free money. It’s ok to only meet the match when you’re starting your career but if you don’t meet the match you are leaving free money on the table. As your career progresses, look for opportunities to significantly increase your 401(k) contributions and max it out to take full advantage of the tax benefits.

You can also build wealth in your 20s by contributing to a Roth IRA. While your income is low open a Roth IRA. Contributions to a Roth IRA are not tax deductible but when your income is low this has less of an impact. The tax benefits to a Roth IRA are when you take the money out in retirement you aren’t taxed on any gains and there are no required minimum distributions. As your income increases, you may hit a point where your eligibility is phased out and then are not eligible to contribute to a Roth IRA anymore. At that point you’d have to look into a Backdoor Roth IRA so it’s best to take advantage of a Roth IRA as soon as you can. A Roth IRA is pretty straightforward, but there are a few Roth IRA rules to be aware of.

At first your retirement accounts will seem really low. But, by the time you turn 30 you’ll be impressed with how much your wealth has grown in these accounts.

Minimize Your Debt

It’s important to keep your debt to a minimum or get out of debt completely in order grow your wealth in your 20s. In the Class of 2018 69% of college students took out student loans and graduated with an average debt of $29,800 according to Student Loan Hero. How can you start chipping away at this as quickly as possible? There are also companies that are offering loan forgiveness as one of their company perks.

While you may already have student loan debt, you don’t need to find yourself in additional debt, especially from credit cards.

If you need a car for your job and need to take out an auto loan, spend as little as possible here. Buy used, but also buy smartly. Don’t justify buying a more expensive car because you’ll have it for so many years. The truth is, you have no idea where you’ll be in a few years. You may move into (or out of) a city, to a new country, get married. There are also so many options these days to avoid buying a car such as living and working in a city to take advantage of public transportation, working from home, and working as a consultant and traveling every Mon – Thurs.

Live Like You Are Still in College

Building wealth in your 20s is also dependent on controlling your expenses. When you are in your 20s you either recently graduated or have graduated within the last 10 years. College is recent enough where you can probably recall vividly how you lived during those years: frugally.

In college, you most likely are living in a very tiny space with roommates. You’re surrounded by businesses that offer the college specials. For example, show your student ID to get a certain percentage off and bars that cater to college students with $2 beer nights. You had opportunities to walk across the hall and borrow friends clothing. Meal prep included ramen noodles and microwave mac and cheese.

Is frugal living not for you? This doesn’t have to be a permanent lifestyle, but the longer you’re able to live frugally like you lived in college the easier your finances will be. You don’t have to cut back in all areas either, the single most important expense is housing.

Spend As Little As Possible on Housing

Housing is likely the largest expense in your 20s, and the easiest one to blow. Nice, spacious, well located places are the most expensive. Don’t become “house poor.” Experts say housing should be no more than 30% of your gross income and that includes all housing expenses. You will have to make sacrifices so identify what is most important and where you are more willing to cut. And, if you’re going to live on your own follow these financial tips so you don’t spend too much on housing.

If location is most important, look into studio apartments, living with roommates and a place that is outdated. If you want the nice kitchen and something more spacious you’ll probably have to look at a less ideal location. In some cases this may mean looking at alternative cities, not just across town. When you don’t understand how people can afford certain things you probably don’t have to look much further than the percentage of income that is going towards housing. Bringing your own lunch can save $7 / day or $140 / month. Being smart with your housing can save you hundreds a month and thousands a year.

Limit Spending on Food and Drinks

Limiting spending on food and drinks is a great money move in your 20s because it starts developing discipline around spending money. It’s hard to say no to always going out with friends and spending money on food and drink but it adds up. By learning how to budget and then prioritize how you spend money on food and drinks it will help you prioritize your spending in other areas.

The most frugal way to limit spending money here is to never eat out. But, where is the fun in that? Plus, to the first point on hustling at your job it’s important you build your network and build relationships. You can still go to restaurants and bars and not break the bank. For food and drink, take advantage of happy hour specials. Go over a friends house and have a drink before heading to the bar. When you get to the bar, limit yourself to one drink. Take advantage when there is free food at events. Bring your lunch. There are plenty of ways to continue to enjoy eating out while controlling your spending.

When you buy groceries, look for coupons and deals. There are also ways to spend less on food by buying cheaper options. For example, buy oats and make oatmeal instead of single serve yogurts. You can find dinner recipes and meal planning tips to save money.

Limit Spending on Clothing

Your college wardrobe and professional wardrobe will not look the same so spending money on clothes in unavoidable. It’s unrealistic to expect that you can go on a clothing ban unless you have a robust professional wardrobe from college or what you wear to work is more casual. When you do spend money on clothing, take advantage of sales.

Do spend enough where you look presentable at work. You want to position yourself early on as a go getter and dressing presentable will help form favorable opinions. Don’t break the bank while doing this though, you do not need to buy designer. You can buy nice work outfits from TJ Maxx or buy second hand and look professional. If your company gives you a laptop bag with your laptop use that for the first few months until the right sale comes along. Later, take advantage of Black Friday shopping at the outlets for a nice black tote bag. You do not need to start day 1 (or even year 2) with a Tory Burch or Prada tote bag.

Live Like You Have The Least Money of Your Friend Group

Living like you have the least amount of money of your friend group is easiest to do when you first graduate college. Everyone is just getting established and six months out of college is when the first student loan payment is due. Friends will want to have a few drinks at home before going to the bar to save money. Or, stay in instead of going to a bar. You can go on trips that are driving distance and share rooms with 3 other people. Even if you earn more money than your friends, or have less debt than your friends, spend as if you have that same income limitation or same debt limitation. Then, put that extra money towards your emergency fund, retirement and investing.

As you age, friends will move away and you’ll need to spend money on flights to see them or vice versa. Between careers and starting families it will become harder to see friends and you’ll spend more money to hang out as you prioritize convenience over money.

Don’t Increase Your Spending for 2-3 Years

Lifestyle inflation happens when you increase your spending as your income increases. Spending more now could mean blowing through funds you’ll need for a down payment, retirement, etc. The more you can save when you’re young the easier it is as that savings will continue to generate passive income for you. As your career progresses, this will also become harder to avoid not due to increased expectations but less free time. Things you used to be able to do yourself you will to pay someone to do for you or you won’t have as much time to shop around for a deal. This may be as a result of a more demanding career or deciding to raise a family. Your tastes will also increase as you age.

Take advantage of being young and keep your spending steady the first few years after you graduate, even as your income increases. Live like you are still in college for the first few years and then slowly increase your spending after that. Invest the money you’ve saved instead and take advantage of compounding interest to begin building a passive income stream.

Take Advantage of Company Benefits

A 401(k) match isn’t the only company benefit you should take advantage of. Some health insurance plans offer money towards a gym membership every year. Depending on the industry and area, companies may offer free or discounted food, free gyms on-site, discounts on auto insurance, discounts on personal travel and more. Look at your internal company site to learn more about perks offered by your company. And, if your company doesn’t have great benefits it’s a hot job market now. Ask your friends for an employee referral and interview at another company.

How to Be Smart With Money In Your 20s Summary

The financial recommendations above seem like a lot, especially when you are in your 20s and just starting your career. How are you supposed to fund an emergency fund, invest, pay off your loans and actually live on your salary? Don’t get overwhelmed and take baby steps to start small. The less money you spend, the more money you’ll be able to invest or put towards paying down debt. The more you can increase your income, the less focus you need on keeping your expenses small. These smart money moves in your 20s will help set you up for success for decades to come. Yes, these are the years it’s hardest to do that as you’re likely making the least of your career now. But, your lifestyle expectations are also the lowest. By following the advice above, you’ll be in a great position to build wealth in your 20s.