7 Money Saving Habits You Should Start in Your 20s

by Etiqa

coins stacked

You’re in your 20s, which means you’ve just finished university and are just starting out in your career, or have been in the workforce for a few years now. Old age and retirement are decades away, you say, so you’re not thinking about being financially savvy right now.

Nevertheless, it’s not too early to start thinking about developing good money habits. First, you’ll be able to void building up debt and putting your future self into financial trouble. Second, your future self won’t have to work so hard to be ready for retirement.

1. Set Financial Goals

Imagine your future self and lifestyle. Where will you live, what’s your ideal lifestyle like? Make an estimation of how much you will need. With this “goal” in mind, you’ll better be able to focus on keeping good financial habits.

2. Avoid Impulse Buying

Impulse buying can not only leave you broke all the time, but you’ll probably accumulate things you don’t need or hardly use. If you let this habit grow, you’ll have less to save and run out of storage space fast!

3. Focus on Paying Debt

writing debt

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Perhaps you’ve got a student loan to pay off, and have had to buy a car to make it easier to get to work. Scale back on eating out, weekend trips away and expensive gadgets and pay off these debts as soon as possible. You’ll be able to save on interest and for this, your future self will thank you.

4. Live Within Your Means

Do you really need to rent a whole apartment by yourself or could you rent a room? Is a brand new car necessary or could you take public transport instead? Be practical with your spending and live within your means. Put aside the money you don’t spend on those things for emergencies and savings.

5. Start a Retirement Savings

The common advice is to save 20% of your salary into a savings account that you tell yourself not to touch – ever. But if 20% isn’t possible, try 15% or 10%. Save something every mouth. Raise that amount when you start earning more.

6. Build an Emergency Fund 

An emergency fund is for, well… emergencies like car repairs, unplanned trips to your hometown, dental emergency, and medical costs that aren’t covered by your company’s insurance. Saving money for unexpected incidents like these will keep you out of debt.

7. Learn to Cook

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If you left the cooking to your parents and eat out a lot since gaining independence, then it’s time to browse Pinterest and teach yourself a few cooking skills. Making meals at home is going to be cheaper than going out, and the skills you gain will be mighty handy for future potluck parties.


The information contained in this blog is provided for informational purposes only, and should not be construed as advice on any matter. Etiqa accepts no responsibility for loss which may arise from reliance on information contained in the article. This information is correct as of 10 October 2019.

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