3 Tips for Saving Money in Your 20s

Saving money in your 20s may seem like an impossible task, but did you know that your 20s is actually prime time to start setting money aside for you future?

If you’re wondering how to save money in your 20s, follow these three simple tips for managing your funds and setting yourself up for a financially successful future.

3 Important Money Saving Tips for Young Adults

1. Start an emergency fund. An emergency fund is one of the most important things you can establish in your twenties. Should you experience any financial hardships, such as unemployment, unexpected medical expenses, or an expensive car repair, your emergency fund will be there to cover you.

But how much money should you save? That depends on how much you spend each month. Money Under 30 suggests having at least three months of expenses saved up. You can use their Emergency Fund Calculator to get a better idea of how much you should be putting away.

2. Mange your budget. Take a close look at your budget—especially your entertainment budget—to see where you can cut back. Adults in their twenties often spend money on entertainment, like concerts with friends and weekend travel plans, and these areas are often where you can cut back the most.

The Penny Hoarder suggests taking charge in your group of friends and making sure your plans are reasonably priced.

3. Pay down your debt. Paying down your loans now will save you money in the future. Forbes recommends focusing on your emergency fund and retirement savings first, then paying off any debt with interest rates over 7%. For interest rates over 7%, you’re likely save more on interest than you would earn by investing that money. Always consult a financial advisor or debt expert before making decisions on consolidation or pay off.

Save Money with First Bank

Following these three simple money management tips is a great way to reach your savings goals. For more money management tips, check out First Bank’s Financial Education Center or contact us to learn more about our savings accounts.

———

Sources:

Betterment: https://www.betterment.com/resources/investment-strategy/strategy-investing-in-your-20s/

Money Under 30: http://www.moneyunder30.com/emergency-fund-calculator

PennyHoarder: http://www.thepennyhoarder.com/managing-money-in-your-early-20s/

Forbes: http://www.forbes.com/sites/financialfinesse/2014/03/06/should-you-increase-savings-first-or-pay-down-debt/#7ae4e10b33e6

Share:

Sign up for our newsletter and be the first to know about new tips, insights, and products from First Bank.

First Bank may use this email address to contact you about products, services, and promotions.

You may be interested in...

Banks With Hassle-Free Checking Accounts If you’re like most people, you probably want a checking account with all the perks but none of the stress. First Bank has more than 100 locations throughout North Carolina and South Carolina that offer banks with hassle-free checking accounts. Checking Accounts at First Bank Here’s a breakdown of First Bank’s five personal checking accounts and what makes them hassle-free: Everywhere Checking What it is: A no-frills account to give you exactly what you need and nothing you don’t. How it’s hassle-free: Maintain either a $600 minimum balance, a $1,200 average monthly balance or make a monthly direct deposit of any amount.* Everywhere Plus What it is: A simple checking account that accumulates interest. How it’s hassle-free: Keep a $1,200 balance or an average monthly balance of $2,400.* Everywhere Premium What it is: An upper-tier account that earns interest and features additional perks. How it’s hassle-free: Maintain either a $5,000 minimum balance, an average monthly balance of $10,000 or maintain $20,000 in personal deposits or outstanding personal loans or HELOC balances.* Campus Checking What it is: A checking account for college students or those about to go to college. How it’s hassle-free: No monthly maintenance fees or minimum balance requirement as long as the customer is under the age of 25. Senior Checking What it is: Checking account for individuals over the age of 55. How it’s hassle-free: Keep a $600 minimum or $1,200 average balance or make a direct deposit of $250 or more.* With our hassle-free checking accounts, you get online and mobile banking, paper or eStatements, online bill pay, and debit cards. You also gain access to account alerts so you can stay on top of your activity. Visit a First Bank Today Find a First Bank with hassle-free checking accounts nearest you and lose the stress today. Account holders may avoid the Monthly Maintenance Fee by meeting any of the requirements listed in the Keep if Fee Free™ section of the account summary table for their account type. Other account service fees may apply as described in the Account Services Fee Schedule, also available at your local branch. Direct deposit defined as external ACH credit. Transfers from other First Bank accounts or deposits made at a 3 min read

Calculate Your Monthly Mortgage Loan Payment (with Taxes and Insurance) A mortgage loan calculator with taxes and insurance can help prospective homeowners prepare for the financial responsibility of owning a home. Purchasing a home may be one of the biggest decisions you ever make, so it is important to know how much your mortgage payment will be each month after taxes and insurance are added, so you can know how much house you can afford. How Much House Can I Afford? First Bank* provides a mortgage loan calculator with taxes and insurance for potential homebuyers who want to estimate their monthly payments before applying for a loan. Before you use the calculator, you will need to gather the following information: Loan term in years Purchase price Percentage down Interest rate Annual tax Annual insurance Once you have all of the necessary information, you can click here to calculate your potential monthly mortgage payment.** Applying for a Home Loan Now that you’ve calculated how much house you can afford, you may be ready to apply for a mortgage loan. You can get the homebuying process started by visiting First Bank’s online Mortgage Center. Our Mortgage Center provides you with tools, tips, and tricks to help you find a loan that meets all of your needs. Whether you are a first-time home buyer or ready to build your vacation home, we can structure a loan to meet your needs. First Bank offers a variety of home loan options*** with competitive interest rates, including : Conventional loans Government loans Professional loans Jumbo loans Construction loans Dream It, Own It loans The path to quickly finding an affordable home loan starts at First Bank. When you’re ready to apply, all you have to do is start an online application or visit your local branch to speak with one of our home loan experts. *Member FDIC. Equal Housing Lender. NMLS #474504. **Determining exact rates and payments can be a complex process. Your exact rates and payment amounts will depend on a number of factors including geographical location and personal financial information. This tool provides you with an estimate of payments based on the information you put in but does not guarantee them. Loans are subject to credit and collateral approval. ***Loans subject to credit approval. 2 min read

What Do I Need to Open a Checking Account? What do you need to open a checking account? It can vary a little from bank to bank but there are typically some fundamental necessities needed to open a checking account. First Bank has five levels of checking accounts, each with varying conditions and capabilities. But let’s start with the basics that hold true for any checking account: What You Need to Open a Checking Account Identification. You will be required to show a picture ID in order to open a checking account such as a driver’s license, passport or military ID card. Personal information. Basic information such as name, address, telephone number, date of birth and social security number. Deposit. You’ll need a small minimum amount of money to make the initial deposit into the account. Clean record. Before opening a new checking account, a most banks will run a consumer report of your previous banking relationships to make sure you don’t have a record of charged-off accounts or fraudulent activity. A bank will sometimes allow you to still open a new account provided you repay the charged off account. Types of Checking Accounts Let’s take a look at First Bank’s five personal checking account options. Everywhere Checking. This is our most fundamental checking account. Everywhere Plus. This option allows you to earn interest on your balance. Everywhere Premium. Earn interest plus enjoy some additional perks such as an unlimited number of out-of-network ATM transactions with no First Bank fee. Campus Checking. Students under the age of 25 get the benefit of a checking account free of a minimum balance requirement and monthly maintenance fees. Senior Checking. Customers age 55 and older can be fee-free with direct deposit and get free checks. Contact First Bank Today Visit your local First Bank and one of our friendly associates will help you with what you need to open a checking account. Or use our Compare Accounts feature to see which checking account is right for you. Read more about this topic: What Is Required to Open a Business Checking Account?, Finance 101: Banking Basics. ——— Sources: Investopedia: http://www.investopedia.com/terms/m/minimum-balance.asp 2 min read

5 Ways to Protect Your Home for Hurricane Season Summer is hard to beat with the warmer weather, longer days, family vacations, and backyard parties. But if you live anywhere near the coast, summer means more than beaches and barbecues. You also need to prepare for hurricane season. 3 min read

3 Tips for Saving Money in Your 20s

Ready to talk to an expert?

3 Important Money Saving Tips for Young Adults

Save Money with First Bank

Ready to talk to an expert?

You may be interested in...