The twenties are quite a strange period of time in our life. We find ourselves at the cusp of adulthood, earning our own living, ticking off stuff on our bucket list of life, sometimes staying away from our families, making new friends and trying to hold on to the old ones. At once we feel like going on impromptu trips and eating out all the time, and then there is also the responsibility of saving up in case of an emergency. But don’t worry girls, we’ve got you covered. Here are 20 ways to live financially smart in your 20s!
At times, we do need to be a bit strict with ourselves. So make a monthly budget, taking into account the things you are likely to spend on. And try your best to not go overboard.
If you like going out with friends, space out your dinners, movie plans, and short trips so that it doesn’t feel like you are spending too much money at once!
If your friends are making an impulsive plan which would require you to spend a considerable sum of money, pause to consider if you are really prepared to incur the costs. If you are having second thoughts, always feel free to politely refuse their offer. FOMO is only in your mind, after all.
This will come in handy especially if you are living on your own. Scout the markets to find places which perhaps sell groceries, home amenities etc for cheaper. In the long run, it will definitely help you save a lot of money.
Instead of taking a taxi or your own car/bike, use public transport as much as possible. It might not be always very reliable, but will help you cut down on costs enormously.
Provident funds, mutual funds, fixed deposits - there is a whole gamut of options to choose from. Investing your money will also help gain interests from the same and make you eligible for income tax exemption. Make sure to visit your bank to make an informed decision.
We girls love shopping and we collectively go bonkers when there’s a sale at our favourite high-street brand. But even at such a happy-high moment it is important to think - ‘Do I really need another Black shirt from Zara?’
According to your monthly budget, withdraw a certain sum of money and try using that instead of swiping your card. This will ensure that you don’t resort to overspending.
Having said that, it is also important to be happy. So, if you want to splurge on something you have been wanting to buy for a long time (a gadget, a dress, a coffee machine etc.) go for it. Make sure it is of good quality so it actually serves as an investment in life.
You’re growing up now, which means it’s time to quit asking your parents for the moolah. Especially if you are working, you need to figure out a way to thrive or at least survive with your own earned money.
Do this consistently because otherwise, you’ll have the fake feeling of hoarding/saving money which is not yours, to begin with.
Everything costs money ladies. But sometimes a game of bowling will make you happier and help you make more memories than buying the umpteenth pink lipstick.
Shopping alone can be therapeutic in a sense that it’ll make you aware of the things that you are in need of. If a friend is accompanying you, you tend to pick up way more things just because she thinks they’ll look cute on you!
Make a financial vision board keeping you career in mind and the kind of financial progression you expect to make in the coming years. This will help you focus on realistic goals and work towards them accordingly.
Living a financially smart life that requires some hard work. But that doesn’t mean you should just have your life revolve around money. Keep toxic thoughts at bay and everything else will sort itself out.
Adulting is all about being prepared to take on life head on. You should get a health insurance so that just in case you have a health-related emergency, money is not an issue. Again, getting one will help you save on income tax!
Having a credit card means that you are spending money which you don’t have. So, do you really want to do that? And pay to accumulate interests as well? It’s important that you talk to experts in such matters to make informed decisions.
Saving in your 20s is the key to having the life you have always wanted. Set time-bound goals according to your convenience and try your best to stick to them.
You should aspire to save at least 10 per cent of your earnings to live a smart and frugal life in your 20s. That’s what F.R.I.E.N.D.S. taught us, right?
Everyone’s life is different and has its own set of challenges. So, enjoy the experience you are undertaking, plan expenditures out according to your convenience and have some fun along the way. Be proud of the fact that you are in control of your life.