How To Start Saving Money In Your 20s

How To Start Saving Money In Your 20s

Saving money is the best thing anyone can do to jump start financial freedom and doing it in your 20s is an even better advantage. That is why today’s post will be about how to save money while in your early 20s. If you find this post helpful then consider sending this to a friend that would enjoy this reading.

Side Note: I am not going to say “Get A Job” I one of the first things to do because that is a no brainer. Plus I give you guys a break.

Open Up A High-Yield Savings Account

Don’t let the money you have collect low interest in a regular savings account. You will only be making pennies compared to actually making whole dollars. I know that rates are not the best now, but they will only go back to regular rates.

Go to the website BankRate to check out all the different savings accounts and what they offer.

I should also mention that looking into opening a Roth IRA is another big move to make while in your 20s working and saving.

Download A Budgeting App

If you read a lot of my post then you already know that what app I am going to suggest. Yes, Mint is one of the best on the market (this is my opinion) and handle all the tracking for you. I tell you a quick story on why you should download a budgeting app (or start writing it down).

When I first started making money, I decided to do online shopping, buy lunch, go out, etc. One day I woke up to an email from Mint giving my weekly report and it said that I had spent $200! My heart sank and that is what pushed me to be more mindful with not going over budget.

I know that it’s super hard to save while being in your 20s (yes I am only 23 so I fully understand). Stick with it and you’ll feel a lot better looking at the money you saved compared to what was spent.

Start Investing Your Money

Once you have accomplished the little goals of saving goals, now it’s time to start investing that money. If you’re the type of person that wants to pick stocks that you want to invest based on interest or doing research (r/WallStreetBets) yourself then Robinhood is the way to go. If you are the opposite then sign up for apps like Acorns, Stash, M1Finance, etc. These companies will invest the money you put upfront into stocks based on investing goals.

Start young and get a head start with long term investing because all that money just sitting in a regular savings account is not going to make anything long term.

I wanted to give all you young adults a quick guide on how to start saving in your 20s and hopefully this post was a jump start. Another reason why it’s a short post is because our attention span into reading long detailed stuff is horrible (Yes I am guilty of it).

Make sure to send this blog post to a friend that could also benefit from reading. Thanks for supporting The Finance Starter and don’t forget to read what else I have written below