Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

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

Trending Topics

3 Major Factors of a Small Business Credit Card Comparison

Conducting a small business credit card comparison can be a useful tool when looking for resources that can help your company. But there are many credit card options available to entrepreneurs, which can make it difficult...

What Are 20-Year Mortgage Rates?

There are various factors to consider when purchasing a home, including how to finance it. Some consumers may opt for a mortgage with a shorter term while others find it beneficial to extend the mortgage. It may be best to...

How Much Money Should I Have Saved by the Time I am 30?

Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved. However, because everyone’s...

New to Working From Home? Here’s How to Do It Safely

To help mitigate the threat of COVID-19, businesses and employees are finding themselves taking part in the biggest “work from home” experiment ever tried. If you are one of those business owners or employees, here are...

How to Get a Home Equity Line of Credit

If you are thinking about taking out a loan to finance a major expense, such as home repairs or college tuition, a home equity line of credit (HELOC) or loan could be a good option. With a home equity line of credit, you...

How to Save for Periods Without a Paycheck

Did you know that two out of five wage and salary earners over the age of 15 know their schedule less than one month in advance? If that sounds like you, or if you're a teacher on a 10-month pay cycle, try this calculator...

Financing Your Operating Cycle

the true value of working capital financing comes in the form of opportunity cost. By using cash to fund the operating cycle, companies are forced to pass on more valuable options to invest their cash into. Here's a real...

Mastercard Business Card with Rewards

Business owners use credit cards to pay for most business expenses. It’s important to have a business credit card that enables you to get the most out of your money. Discover your credit card options at First Bank.

Checking Account Offers – Asheville, NC

If you live in Asheville and want to open a checking account, visit your local First Bank. We offer checking accounts for individuals and business owners looking to open an account with a bank that values what they need....

Highest Yield Savings Account – Asheboro, NC

For customers who do not need immediate access to their funds, a Certificate of Deposit, or CD, is one of the highest yield savings accounts offered at First Bank in Asheboro, NC. The Wall Street Journal defines CDs as...