In our twenties we tend to live above our means, party, purchase fancy shoes, make-up and go to fancy restaurants, one can still do this on a budget, it’s called prioritizing. You want to live a life you can afford.
Saving money in your twenties is key to having the life you want, you have to live below your means in order to save money, make sure that you have more money coming in than going out.
If you are paying a ridiculous amount on rent that’s taking up more than half your pay cheque, then move out or get a roommate. If you can’t afford to purchase new clothes, sell your old ones, there are always ways to get around or get this paper that controls our life.
How I gained financial control
- START EDUCATING YOURSELF ABOUT PERSONAL FINANCE.
When I was in school “how to deal with your finances” was not a topic, and most parents do not teach this either. I opened up clothing accounts, credit cards, had no knowledge on how best use these plastics, in the end I was stuck with so many bills that gave me sleepless nights. I then decided to school myself on how to recover and deal with my finances, you can’t make something right or do something well if you don’t know how.
These books will teach you how to save, how to get out of financial debt, how to save even though you’re living from pay check to pay check.
– The Money book for the young, fabulous and broke Author: Suze Orman
– How to make money Author: Sarah Janisse Brown
– Get a Financial Life Author: Beth Kobliner
2. CREATE A BUDGET
I love creating budgets, this can be a tedious and frustrating process for some, however creating a budget will help you monitor your income and expenses and assist you in saving a few pennies.
As your phone is your best tool in your pocket, there are several financial budgeting apps that you can use on the go. Many banks also offer spending tracking on their apps.
Challenge: download the financial app you are most comfortable with and use it for at least 3 months.
P.S Download for free
Then let me know if your financial life has changed!
3. SAVING IS EVEN EASIER WHEN YOU AUTOMATE IT.
Have your bank do the work for you. Many banks provide an automatic transfer option that allows you to schedule transfers from one account to another at a predetermined time. Check with your bank which options they offer.
4. START A SIDE HUSTLE.
Get in the habit of creating multiple income streams,
- Start a bog and earn by affiliate programs
- Sell your old clothes online
- Become a virtual assistant
5. SAVE 10% PERCENT OF YOUR INCOME.
Start saving at least 10 % percent of your income.
Let me explain how this works:
- 50 % of income should cover rent, groceries and fuel
- 30% should cover wants Supper with friends, holidays, luxury etc.
- 10% should go to debts.
- 10 % should go to savings
Of course if you spend less on either of the above you can always add to your savings.
Let me know if this helped and what you’ve done to save or recover from financial misery.