Saving money is hard for everyone, but it seems much more difficult when you’re young and don’t have much to save. Your 20’s is an important period of your life and it is prime time to start saving for your future. While it might be exhilarating, finding every possible excuse not to look at your bank account is no way to live. To help you build a secure financial future, here are some ways to start saving in your 20’s.
Start a savings account
You might already have a savings account, but you might not be taking advantage of it. Actually using your savings account will really help solidify your financial future. Do your research when setting up a savings account. Look for the account with the highest annual interest rate or APY to help grow your balance. Having a savings account will help you save for the future and will ensure you have some funds saved up in the event of an emergency.
Have a budget
Having a budget is crucial when you’re trying to save in your 20’s. Knowing your limits and spending accordingly is very important. There are many apps to help you manage your finances. You Need a Budget and Mint are two great budgeting tools that will help you track spending. To help save some money you can take advantage of savings cards at your favourite stores or add Honey as a Google Chrome extension. This will search the internet for various discount codes that you can apply to your online purchases.
Don’t solely rely on your credit cards
Credit cards are great, but they have the possibility of being dangerous when you’re young. The age of your credit plays a part in your credit score, so being young already has you at a disadvantage. Mix in age with student loans and it can seem like there’s no way to boost your credit. While using your credit cards is a great way to build credit, you shouldn’t max out your credit each month. If you find that you are maxing out your credit cards each month but are still paying them back, then you should seek out a card with a higher credit limit.
Have a payment plan
Many young people are in some sort of debt and most of it comes from student loans. You won’t be able to wave a magic wand and pay off your debts instantly, but creating a repayment plan is smart. Having a payments plan and sticking to it will help you pay off your debts much faster and may prevent you from falling deeper into debt. Automating your monthly bills will help you stay on top of things and will save you from every paying a late fee. Setting up recurring payments for your rent is a great way to stay on top of your finances. Head to RentMoola to find out more.