What’s one thing you would tell your 20-year-old self? If you’re like most people use money saving strategies, chances are you would tell yourself to save money while you were young.
This is advice that most people in their 20s wish someone had given them. While you can’t go back in time, it’s never too late to start saving now.
Saving money is a task that many people want to focus on, but may find hard to do. Data shows that about 13% of Americans save money. This number has increased due to the COVID pandemic.
You need to learn money saving strategies to start saving money. This guide lists 8 great money-saving strategies that wish you had known about in your 20s.
1. Learn Self-Control
One of the money-saving strategies that even many adults don’t have is self-control. Yes, to start saving money, you’ll need to learn how to control your spending.
This is a skill you learned as a child. Remember having to wait your turn to play to bat in baseball? This is pretty much the same skill you’ll need to apply now as an adult.
Delaying gratification is a must. Picture this scenario. The latest smartphone comes out. You want to have it so bad.
What should you do? In this case, the best thing to do is to save the money. If your current phone is working, there’s no need to buy a new one.
Learn how to tell the difference between a want and a need. The phone is a want. If your car needs new brakes, consider it a need.
The money you saved can go toward the new breaks. If you had bought the new smartphone, there wouldn’t have been money for the breaks.
2. Track Your Spending
If you are serious about saving money, you’ll need to know where your money goes. Data shows that 3 in 5 Americans have no idea how much money they spent in the last month.
This is quite shocking. If you are looking to save more money, you need to spend less of it. Knowing where your money goes is part of money management 101.
This information will help you determine if your expenses are more than your income. The best way to keep track of your spending is to budget. There are many online budgeting tools you can use.
As you establish this routine, you may find that you’re overspending. Yes, that cup of coffee you buy every morning on your way to work adds up.
Remember those memberships you’re paying for services that you never use? Cancel them! This alone can save you a ton of money that you’re throwing away.
3. Start an Emergency Fund
One of the best decisions you can make to save money is to start an emergency fund. Not only will you save money, but you’ll also have money to use in case of an emergency.
Take some of the money in your budget and put it into this fund. Do this every month. The money you save in this fund can keep you out of trouble.
4. Pay Off Debt
Having debt can make saving money difficult. To grow your personal finance, consider paying off your debt as fast as you can.
When you’re finally free from debt, you can turn all your focus to saving as much money as you can. As you pay off the debt, put some of your money away.
5. Living on Less money saving strategy
Living on less is a great way to save money. No, this doesn’t mean you have to become a cheapskate. Do consider cutting back on things you don’t need.
Instead of buying brand name items, buy generic items. Instead of eating out on the weekends, eat out only on Fridays.
6. Pay Yourself First
Here’s an interesting concept. Pay yourself first. Take out 10% of your paycheck and put it aside.
Save the money in a savings account. You can do this by automating it. Your bank can set up a recurring transfer from your paycheck to your savings account.
This is one of the best money-saving tips out there. This method will ensure you have money saved at the end of every month.
7. Use Credit Only When You Need To
Only pay with a credit card if you must do so. If you have an emergency, you can use a credit card.
Using credit cards can increase the risk of building up a balance. The last thing you want is to have to pay interest to the credit card company. This is a waste of money.
8. Retirement Planning Best Money-Saving Strategy
Living in a time of a pandemic shows that saving money is important. As the situation improves, you need to consider your future. Do you have a retirement plan?
If you don’t have a retirement plan, now is the time to open one. Retirement planning during COVID is a must. You want to make sure that you have a plan to set aside money for your golden years.
Make sure to speak with a professional who can help you choose a retirement plan that’s right for you. The money you save for your retirement will need to be secure. It will also have to grow.
Apply These Money Saving Strategies
Now is the time to start saving money. If you didn’t start saving money in your 20s, this is your chance to save money. Use the 8 money saving strategies found in this list.
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