Most young people in their 20s have the same reason, the minimum salary makes it difficult to set aside their income for savings. But actually, there are some saving steps that can be done for young people in their 20s.
So, don’t just because the salary is minimal and then be used as an excuse to procrastinate saving. For example, you have recently graduated from college and may have just received a job. Salary is not big while there are many needs that must be met.
But on the other hand, you may not think too much about permanent dependents because you don’t have assets to pay in installments or a family to support. For this reason, saving should be prioritized because it can be used at any time. For example, emergency funds, business capital, to buy assets, and investment capital.
But how? Here are How to Save Money in your 20s!
5 Easy Ways to Save Money in Your 20s
Increase income and suppress expenses
Try to start getting used to reduce the number of expenses accompanied by increasing income or income. Nowadays, especially with the support of technology that is growing so fast, you can take advantage of your expertise to get additional sources of income.
Try selling your skills and become a freelancer. For example, in the field of digital marketing, programming, graphic design, writing, translation, and so on.
There are so many marketplaces that can bring freelancers and clients together. Such as Sribulancer, Upwork, Fiverr, and many more. Just register on the freelance site and find a job that matches your skills.
Also Read: How to Save Money for a House in One Year
Prioritize your income
The next step is to prioritize the use of income money each time. Because you have a saving goal, try to prioritize the income you get for saving. Whatever the income, but if saving is included in the main priority then it can be done.
Try to invest
If you already have your own money to save, don’t forget to set it aside to invest even a little. Because saving money that can be invested can make it grow. It’s a different case if it is only experienced in savings, it can even be reduced because there is a cut in administrative costs.
In addition, inflation occurs almost every year and can reduce the exchange rate. Plus, having money in savings that can be withdrawn at any time can lead to more extravagant behavior. Because you can’t stop yourself from buying something you don’t really need.
Investment is important because the value of the money invested does not decrease but increases over time. Especially because of the compounding effect, for example, if the chosen investment instrument is in the form of deposits, mutual funds, or stocks. There will be interest earned on the investment. Interesting right?
How to Save Money in your 20s With Avoid using credit cards
It must be admitted that in many ways credit cards make it very easy for users. Especially the more efficient use when you want to meet various needs. If the main goal is really just to save, try to avoid using credit cards as much as possible.
Psychologically, someone tends to more easily give up money that is not visible in the amount. That is, the use of credit cards will affect someone to be more extravagant because they do not see the money spent physically. So there is no feeling of guilt when shopping with a credit card.
Besides that, increasing the use of credit cards is not much different from increasing debt. In addition, this also actually burdens the bill.
As a result, instead of increasing the amount of savings, the bills continue to swell. If so, do you still want to rely on credit cards? It’s best to think about it over and over again carefully.
Want to apply for a loan? Think first!
Apart from credit cards, there is so much access to get loans. Especially because the internet makes information very accessible. But keep in mind, the easier access to loans means that it will widen the ‘debt hole’.
Moreover, if the debt is only used for things that are not productive. For example, applying for a loan to buy the latest gadget. Please note that gadgets cannot be used as assets that can earn. Because, can not make money directly and if resold, generally the value continues to decline. If you have this, can you save if you still like to look for loans for something that is not productive?
If you really have to apply for a loan, you should use the loan for more productive things, such as for business capital. So think again carefully, is the purpose of applying for a loan really necessary for productive needs or just fulfilling a lifestyle?
If not, then don’t apply! Seban will make it more difficult for the desire to save. Moreover, on the other hand, you also have to cover bills that cannot be postponed. Think carefully yes!
Also Read: 20 Frugal Ways to Save Money Every Month
Have Strong Intentions and Wills
Anyone can save, even if they are still in their 20s. Precisely at this age, the necessities of life are still not too many so that the opportunity to save is bigger. Don’t miss the opportunity to save from a young age so you can achieve financial freedom in old age.