Friday, 11 September 2015

How To Save Money in Your 20s


Your 20s are a trying time in your life financially. You have most likely entered into a world of debt with university loans and alongside that, you are trying to save your pretty pennies for that once in a lifetime trip overseas where you hope to inevitably, 'find yourself'. You may have even applied for your very first credit card or are borrowing money from family members to help pull you through until you land that desired full time job.

You've just entered into the world as an adult and reality has hit you, it's all about that 'money, money, money'. I hate to go full ABBA here, but it really is a rich man (or woman's) world.

Generally, your 20s are the prime of your life- going out, being with friends and your social life is usually of upmost importance and money saving is put on the back burner. Who needs to think about house deposits or buying stocks when you have tequila, am I right?

A few years back, my friend Sarah and I scrimped and saved for our 6 week trip around Europe. I'm not going to lie, it was hard to save up, but we felt so much more free financially and we didn't have to compromise on our sightseeing or shopping. Because this was such a success, I want to share what I have learnt about saving, which will hopefully help you save for whatever you need. Whether it's to pay off a loan, a round the world ticket or even to get you by with your vivacious social life, I'm positive I will have some tips to help you.


1. Make saving goals.

Set a date in the future in which you hope to have reached your saving goal. Say in 12 months time you hope to have saved $5000. Set up a reminder with an alarm in your phone every three months to check how your saving is tracking so far. If you find that you are not reaching your goals, pull yourself back in line! Don't forget to be realistic with your goal setting and take your personal income into account. As a full-time student still living at home, I personally would be aiming to save 2/3 of my weekly/fortnightly income and leave myself with a contingency of 1/3 of my income in which I can spend however I choose. 

2. Sweat the small stuff.

One thing I found really helpful was purchasing a giant money tin and feeding it with any change I had after the end of each day. These money tins are genius because you can't open it and access your saved money unless you completely destroy it. I fed mine with $1 and $2 dollar gold coins and by the end of the year I had somewhere close to $500 saved. Think about it, if you put away $2 a day for the next year, you will have saved over $700!

3. Eat in.

Sounds simple enough, but it can honestly burn a hole in your pocket when your are eating out with friends and you're busy enjoying your social life for 3 or 4 days of the week. Grab some friends and a kitchen and get to work making a dish together. This is especially hilarious if like myself, you have no idea how to cook and cooking in a kitchen without blowing it up is a new experience for you and your friends! This is something I have recently employed myself and it has been even more fun creating these memories than sitting down at our favourite pasta restaurant. Admittedly, we do find ourselves out for dinner, but much less than before. 


4. Drink up!

Carry a refillable bottle of water with you wherever you go! Especially a great idea if you have caved into going out for food/ coffee, you will always have a drink on you to subside your thirst and keep you hydrated. Not only good for your pocket, but also a bonus for your health!

5. Bye bye spending!

Say goodbye to I want and 'Hello!' to I need. This is not to say you can't have the things you want every once in a while but you definitely need to cut the unnecessary spending. Okay, so your favourite black flats have a hole in them which you only discovered after being caught in the rain one morning, that's cool- replace them! That brand new foundation you really want but you still haven't finished your other five? I would say no to that.

6. Be prepared to work hard.

If you're really strapped for cash, ask any family or friends if you could help them with any odd jobs. Babysitting, pet sitting, house sitting... any form of sitting really. Maybe your best friend's, dad's, brother needs help with some manual labour one weekend... You'll never know unless you ask. You will be helping others out and creating a little cash on the side to go towards your savings.


7. Exchange foreign currency.

Back before the Australian Dollar crashed, there was a time where it was pretty on par with the American Dollar. The Australian Dollar reached an all time high of 1.10 in July 2011 and had you bought $500 USD when the market peaked, at the current market of 0.71 you could buy just over $700 AUD. That's over $200 AUD of free money! Of course this method is a lot less reliable than any others and so should be treated and exercised with caution.

8. Lock it away.

So you've finally saved your goal amount, what now? If you weren't saving up for anything in particular, you might be thinking about what to do with your money. If you're unsure of how to spend it yet or have decided on a new goal, my best advice is to lock it away. The best way to make sure you don't touch all the money you have saved is to lock it away in a term deposit with a fixed interest rate. This way your saved money can continue to make money without you ever having to do anything. For example, say I put $5000 away in a term deposit at a fixed interest rate of 2.75% for the next 12 months. At maturity, (a.k.a. when the year is over) I would have earned another $137.50 on top of that. Granted, it's not a significant amount of money, but it's still money that you didn't have before!

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I would love to hear your thoughts in the comments and would love to know what are some of your top tips for saving money?


I've also written this post as an entry to Heritage Bank's 'Savvy Saver' Awards which are determined by reader votes. I would be so appreciative of your support- just head over here, search for my blog, Anjelique and vote. If you do so, you could also be in the running to win a $100 gift card! How's that for free money?


9 comments:

  1. loved reading the post dear.....you are right...it's very important to save money, It really helps in odd times...

    www.crazyaboutcolors.com

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    1. Thanks so much lovely! If you found these tips helpful I would really appreciate if you could please vote for me in the blog awards, it would really help me out!

      X

      Anjelique

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  2. This was a brilliant post Anjelique and most likely something that will help many readers! I am such a 'saver' and always have been from a young age; I like to save, lock away and never touch again. Great tip on eating in more by the way! :)

    Gabrielle | A Glass Of Ice
    x

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    1. Thanks so much Gabrielle, I really hope it does help others in their saving techniques! At least you will always have some money locked away for that rainy day. I would really appreciate if you would take some time to vote for me in the blog awards, it would really help me out!

      X

      Anjelique

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  3. I need all these tips as I recently realized how much money I have spent in the last 6 months *sigh*
    Just voted you! Good luck!

    xx
    Oh Dear Bumblebees

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    1. Haha it can be a bit like that! Thank you so much, I really do appreciate it and I hope these tips help you get back on track with your saving!

      X

      Anjelique

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  4. Gosh, I wish I was as wise in savings when I was in my 20s but I spent whatever I earned. LOL!

    Shireen | Reflection of Sanity

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    1. LOL Shireen! I spent whatever I earned when I first got my part time job in my teens so I feel like it's out of my system... for now! I'm putting my savings towards my next holiday ;)

      I would really appreciate if you could please vote for me in the blog awards Shireen, it would really help me out!

      X

      Anjelique

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  5. Oh my god I really needed this post - I am so terrible at saving! My issue is that I need everything!!

    http://ruthyb1.blogspot.co.uk/

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