Home  >  My Life  >  A Better Life

The Lazy Twentysomething’s Guide to Saving Money

saving money

In your twenties, when you are just experiencing having your own money, it’s very hard to not spend it all. Here’s our guide to saving up.

Why lazy? The way I see it, we don’t want to invest hours and hours studying different return rates on savings accounts or trying to understand investments and the stock market. We want simple tips that we can action today and have more money in our pocket tomorrow, with little or no effort.

I believe there are two ways to save more money:

#1 Make more money, and maintain the same lifestyle. Or at least, income growth beats expenditure growth.

#2 Put more money away from what you currently earn by spending less.

Both strategies will lead you to having more money saved up, so let’s contrast them and see which the better option is.

Earning more than you spend

This is the ideal situation, but it is also the least within your control. If you work for yourself, then you can follow this route and ensure that your spending increase does not keep up with your earning increase. If you are employed, this is at the mercy of your company, and thus, not a good strategy to bank on.

Saving more and spending less

This is totally within your control, and it is therefore the best option for you. How much money you spend is easy to measure, easy to control, and easy to change.

It’s an interesting human condition that we will adjust our spending up or down to match the amount of money we have available. If more is available, we will almost certainly spend more, without any greater benefit or an increase in happiness. Likewise, if less is available, we will easily scale our lifestyle down, again without much interference, assuming that our essential needs are covered.

[Read: 15 telltale signs of twentysomething aging]

How to have more money saved up in your twenties

These general tips are easier said than done. That’s why we’ve compiled a list of ways you can ensure that you’re able to save money, no matter how much you earn.

#1 Use your savings account to actually save. Open a savings account, and automatically pay a percentage of your income into it at the start of each month. Do this before you pay for anything else.

10% is usually a good place to start, and you will find that by never having the money “in your hands,” you will easily adjust and not miss it. It happens automatically, and you will never see the money, so it is zero effort once it has been set up initially.

#2 Cut up your credit cards. Buying things on credit just keeps you in a constant loop of debt, unnecessary purchases, and no savings. If you do not have enough disposable income to pay cash, you cannot afford it. Life will go on without the latest iPhone, the brand new car, or Rolex watch.

Just remove the option completely by getting rid of your cards. Trying to use will power to choose not to use your card is going to be difficult, and you’re likely to cave in. Make life easier for yourself by not having the option in the first place.

#3 Pay off debts ASAP. Debt is just incurring interest that weighs you down. Before you worry about growing your savings, you want to plug the holes leaking out of the bottom. Make it your primary focus to get rid of debt as quickly as possible. This way, you are not fighting a losing battle against interest payments and putting in effort that is not getting you anywhere.

#4 Get a roommate. Living on your own is expensive and inefficient. Half the rent on a two-bed flat will be a lot cheaper than the full rent on a one bed flat. Split the cost of rent, food, and bills between two or more, and you will instantly have more money to play with. On top of that, you even have someone to split the housework and chores with – an extra bonus for you. [Read: 14 things you need to know about living alone]

#5 Stop paying for crap you don’t need. How often do you watch those 7000 TV channels? If the answer is not very, then cut the cost, and have a basic TV set up with a Netflix account. You have just as much access to the things you actually want to watch, without the expense. It’s much easier to remove fixed expenses like this than it is to try and budget for variable expenses like food or nights out. [Read: 30 life truths you need before hitting 30]

#6 Buy and prepare your food in bulk. You will get discounts on bulk buying and by preparing food in advance rather than grabbing takeout food every day, you will cut your food bill in half instantly. You’ll be able to save up without having to forego eating out at restaurants occasionally. Just prepare your breakfast and lunches in advance rather than buying them on the go. Less trips to the grocery stores makes life easier, too.

#7 Look at your bills and bank statements. For years, I used to be scared to look at bills and statements. I would see how much money was in my account, but never break down what I had been spending. Sometimes, I wouldn’t even want to look how much money was there, especially if I knew I had spent a lot of money on a night out. This avoidance is not helping you at all.

You don’t need to actively do anything, just by looking at the statements, you will be more aware of the reality, probably feel guilty for wasting money on superfluous things, and subconsciously be more likely to not repeat it. Avoiding looking just keeps you in the cycle of repetition. Knowledge is power when it comes to your financial situation, and you have to be honest with yourself if you want to move forward.

#8 Set limits and boundaries. Give yourself a target expenditure on certain things, and then remove the option to go over it. For example, budget $100 for a night out, withdraw the cash, and then leave your cards at home.

You now have no choice, you only have the money that is in your pocket, and you cannot spend any more. Again, you are removing the decision making process and taking away the conflict and potential of doing things you regret. This is especially useful when alcohol is involved! [Read: 11 ways to make each day more meaningful]

#9 Use cash to pay for everything. There is something about handing cash over that is painful in our brains. Doing transfers and paying on card just doesn’t set off the same sense of loss as handing over actual paper money. This is a simple way to be more aware of how much you are spending and being acutely aware of everything that you buy. You will start to question whether you really need to spend this money.

Combine this by withdrawing a set amount of cash at the start of the week, and then committing to not going back to the ATM until the next week. That way, you will manage your expenses to the amount of money you have left for the week.

We all do this anyway at the end of the month when payday is approaching and we have limited funds left. We measure what we have and adjust accordingly. Simply take control of this process, and do it all the time to use it to your advantage.

#10 Reward milestones. Saving isn’t sexy and often feels like we are foregoing things we want, even if that is not the reality. Therefore, it’s a good idea to reward yourself for adhering to a savings plan. Set a milestone, and when you achieve it, treat yourself to something. This will be satisfying and will serve as positive reinforcement to keep you going. You just built more motivation by buying something you wanted – perfect!

[Read: 9 important habits you need to be more independent]

Saving money is not complicated, but it can definitely be hard. Use these tips to put the odds in your favor and to build up the habit of saving money. It gets easier the more you have been doing it, so get started as soon as you can!

Liked what you just read? Like us on Facebook Twitter Pinterest and we promise, we’ll be your lucky charm to a beautiful love life.

Team LovePanky
Team LovePanky
Flirt. Tease. Fall in Love. Your Guide to Better Love and Relationships....
Follow Team LovePanky on

Don't Miss this!

Latest in LovePanky

DISCUSSION

4 thoughts on “The Lazy Twentysomething’s Guide to Saving Money”

  1. Johnson says:

    Using cash really is great advice. When you’re forced to part with those dear dollar bills, you’ll actually be controlling what you spend because there’s always going to be that visual reminder in your wallet. It was definitely how I survived college nights out at the bars and clubs. If I let myself use my credit card, then I was almost always in for a nasty surprise at the beginning of the following month. I’m a lot more responsible with it now, but that was a major learning curve for me.

  2. ada says:

    I’m really bad at saving. I see something I like, the next thing I know it, I bought it. I really am starting to think that I’m a buyer by impulse and it is not healthy, I have to tell you. I can’t save any money because of my impulses. I’m also on a college student budget so often times I don’t get to eat because of my spending habits. The one advice I could give you is not to spend money on useless things like I do. Just spend your money on things you truly need and not the things you just want at the moment. It will go a long way and you would save more in the long run.

  3. Donna says:

    I believe in earning more than spending. But saving isn’t as easy as it seems. You should open a saving account and put some percent of your earning in it. Don’t spend that money no matter what. i do this every month, it was difficult at the start but with the passage of time i have learned the art of saving.

  4. Krista says:

    I had problems saving money before but right now, I don’t really have problems with it because I started selling my self online and I started making really good money with this website I signed up for. I never really thought that I’d be making as much as I do. Right now, in 10 minutes, I can make 200 dollars. I only do this job for 3 hours a day and you can imagine how much money I earn. I don’t really need to save anymore, but I do. I only but stuff I really need and some that I want. I wasn’t born rich, so I never experienced the finer things in life. I’m still in question of what I’m doing, it’s really degrading for my dignity as a person and mostly as a woman but I really want to make a lot of money and help my family too. I can’t make this much at KFC. I have been doing this for a year and I made more than 150 thousand dollars with just 3 hours a day and I don’t even do it every single day. A lot of guys know my name and my face and what my body looks like now and I can’t take it back. If I stop, I won’t be making money anymore like this but if I continue, I won’t be really doing more damage than what has already been.

Leave a Reply

Your email address will not be published. Required fields are marked *