On today’s Finance Friday we are talking about ways to save money in your 20s. As young adults keeping money in our pockets is sometimes tough! So here are 20 ways you can save those coins!
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Buy groceries and meal prep
It’s not enough to just buy groceries. Go the extra step and meal prep so you have food ready and you don’t have to buy while you are out.
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Pack a lunch
Most Americans spend ~$6 a day on lunch. If you already have groceries and pack your lunch that is a savings of at least $30/week or $1560/year!
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Transfer 10% of your check immediately into your savings
10% is just the minimum the more you can automatically save per check the better!
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Get a side hustle (or start a business)
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Delay purchasing
Instead of buying something when you see it, sleep on it and decide the next day if you actually need or want it. I often wait 5 days before I officially make a purchase. Often, we are impulse shopping and don’t actually need the item. Another method is to have a specific price point for purchases. For example, if you are shopping for clothes then you will set a budget of $40 for shirts.
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Buy generic
As a cereal addict, I eat too much cereal to buy name brand! There is nothing wrong with generic brands. Generic food, medicine, and clothes will save you a lot of money!
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Ditch cable
Cable is expensive and who actually watches tv anymore. Use Hulu/Netflix/other streaming subscriptions and you can watch all your favorite shows (you may have to watch them the next day but you will survive).
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Have fun for free
There are so many things you can do for fun without having to go and spend a fortune. Some examples are hosting a movie night, potluck, game night, or house party for you and your friends!
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Do a money savings challenge
Check out the 52-week savings challenge.
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Carpool
If you and a co-worker live near each other a great idea would be to carpool to and from work together. You can save money on gas and wear and tear on your car!
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Ask for discounts
I love asking for student discounts. Whenever you make a purchase ask if there are any discounts. It may be uncomfortable at first but once you start getting 20-50% off your purchases, you will be proud to ask for a discount.
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Make a budget
Budgeting takes a bit of time, but it is worth it when you are wanting to save your coins as a young adult! I will be talking about this more in future blog posts!
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Invest
I haven’t personally done this but if you have the money, start investing. Perhaps get a CD, IRA, or money market. Do your research, get with a financial advisor, and invest!
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Pay off your debt
This isn’t always an easy thing to do but the sooner you pay off your debt, the less interest you will have to pay which will save you money in the long run! Once you pay off your debt stay away from getting more!
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Use a cash budget
Ditch the plastic! No credit cards or debit cards (gift cards are welcome). A good thing you can do is start using the cash envelope system! I’ll let Dave Ramsey explain it to you here!
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Make coffee at home
The reasoning for this is the same as packing your lunch. Coffee can run from $0.99 to $6+ per day. Over a year you can save quite a bit of money just by getting a coffee pot and brewing your own at home.
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Get a roommate or stay at home
Some may not like this one but, having someone to share the bills with will definitely save you money. An even bigger money saver is living at home with your parents, usually they will only require you pay 1-2 small bills or nothing at all (you are super lucky in this case). Either way, you save by not being solely responsible for rent, insurance, water, electric, and your personal bills (car note, insurance, food, etc).
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Calculate purchases by hours worked instead of cost
Shift your thinking. If you get paid $10 an hour, a pair of $50 shoes is 5 hours of work. Is it worth it to you to work 5 hours for one pair of shoes?
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Stop buying cheap clothes
Cheap clothes mean you will have to purchase items more frequently which can add up. In clothing, it is better to purchase quality, or you will get stuck spending more in quantity.
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Weekly “no spend” day
I used to be a daily spender. From snacks to bills, I had a habit of spending money daily. Now I practice “no spend” days. All you do is decide that you will not spend money for 24 hours. It is usually easier said than done because you will be reminded all day how often you spend money. This is a great way to save because tiny snack purchases add up and this will give you a chance to save and help you become more aware of your spending habits.
What are some ways you save money?
xoxox Kay
