How to save in your Twenties

I don’t know who needs to hear this, but hey! you’re now an adult with responsibilities. You see that money you’re about to use and buy that Versace singlet, put it back in your pocket, you will need it for that house you wish to buy. That Friday clubbing you are about to go for, guess what, you’re buying the drinks and your account won’t like you for it.

Bad money management, a liquor people drink with relish.

Yes, I understand you have to keep up appearance. I have been there, where desires are put first, where you know what to do, but have zero interest to do it, I threw a turning twenty birthday extravaganza for myself, my first year in the university. So yes, I understand.

But then will you keep stumbling on a stone even while knowing it’s there? The answer is no. It’s time for change. Those monetary decisions, you find tedious and difficult to make, you will be thankful later for making them now.

Here are steps to put into consideration to help you manage your money.

Create a budget

Creating a plan on how to spend your money can help you to achieve your financial goals. The plan must be followed judiciously and you will need all the discipline in the world to do that. A lot of people get carried away by how much they earn, ostensibly believing the money is unending and so therefore have never given thought to budgeting or giving account of how they spend their money.

But tracking your spending will aid you in your budgeting. That way, you will be able to determine where your excesses are and tone it down. Having a budget will provide a window to save for rainy days.

Cutting down on your spending

We humans tend to buy things as the mood strikes and most of the things we splurge on, we don’t need. Cutting down on our spending means giving up on frivolities, spending more time indoors than outdoors. It may sound like such a chore now, but future you will be glad for making such a decision.

Check your bank statement, to have an idea what your expense is like. To find out what you spend more on. If you eat out a lot, then maybe consider stocking your house with food items and do more cooking.

Also, it would do you a world of good, to let go of the live today worry tomorrow mindset, buy things in bulk, learn the art of negotiation, don’t indulge every craving and do not conform to peer pressure.

Create a savings account

Have a savings account set aside where you deposit a certain percentage of your earnings at the end of every month is very vital. Little savings it has shown accumulates overtime. Give the savings a purpose if you will. Like saying this money, I’m saving is for my new car, or buying a land. Either way, it gives you a reason to put said cash away.

You can use automation for this, that your bank takes out a certain percentage of your salary automatically the minute it enters your account and sends it to your savings account. that way you’re trained into believing the money you’re seeing in your balance is what you earn despite knowing how much you earn.

Emergency funds

Make it a habit to save. Saving for emergency saves you from uncertainties, worries of where to get money from when an emergency does occur. There’s something to be said about being prepared. In as much as no one loves finding their self in unplanned situations, been prepared for it lessens the worry. So if per adventure you are fired tomorrow, you wouldn’t be caught living hand to mouth till you get your next job.

so while saving for emergencies, Don’t stop along the way saying you have enough because some emergencies come in the way of juggernauts, and will wipe your account.

Save for Retirement

You are not too young to save for retirement. Wealth accumulation doesn’t have a time stamp or time limit. Let go of the notion that retirement plan is meant for older people. Regardless of how far off in the future it is, starting to save for retirement in your twenties gives you an advantage over someone who started saving in his thirties.

You don’t know the hand life will deal you in your later years. So if you want to be travelling the world with your spouse, going on vacation with your family in your later years, then start putting away money now.


Having money in your account won’t grow it, instead the bank will keep taking out of it but wise investments will see you enjoying great returns. Investments can come in the way of stocks/bonds, real estate. Investing in stocks comes with its ups and downs. It’s not for the faint of heart, because stocks go up and down and you might end up reaping lower than you put in. Bonds on the other hand have lesser risk, you get to collect your investment with little interest.

It’s up to you to decide on what to invest in. But seek counsel before investing, that way you would be sure of your choices.

Financial institutions now facilitate invests of any kind just find the one that is effective and start up.

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