If you make a habit of saving while you are still in your 20s, you will benefit from it for the rest of your life. But we all know that saving is more effortless said than done. It helps to have a clear idea of why you are putting money aside. Why do you put money in that savings account instead of buying that new piece of clothing, for example?
These are savings goals that you better save for in your 20s. Believe us: it will make your life a lot easier.
Saving in your 20s
Of course, everyone has their own savings goals. Yet there are also things that everyone in their 20s should put money aside for anyway.
Save for an emergency fund
This is the most important savings pot on the list. It’s wise to save up for this emergency fund as soon as possible once you’ve found a ‘big people job.’ With this fund, you won’t get into trouble if you lose your job, everything in your house seems to break down, or you have another financial setback.
Training and courses
Yes, even if you’ve already finished your studies. Be honest: how much of what you learned at school do you still use in practice? Exactly. During your career, you will still need to regularly acquire skills and abilities in courses you will need for your work. And what about developing yourself?
If you are employed, there is often a budget for this. However, it is always nice to have savings account for your own development. Then it is also impossible to get stuck in a particular job and you can always make a career switch if you want to.
The chances are that at some point, you will want to buy a house that you can make entirely your own. But these days you need a lot of money for that. When you buy a house, you have to count on about 10,000 dollars for the notary fees, valuation and mortgage advice, among other things.
But because of the overheated market, you also have to offer a lot of money above the asking price, and you better have a bag of money set aside for that. Not to mention the furnishings which will probably cost a lot of money as well.
In other words, start saving now, and your future self will thank you.
The future version of yourself
Talking about the future version of yourself: every money you put aside for later is a nice bonus. We, humans, tend to choose short-term gratification over long-term. Determining exactly how much you want to save and spend helps you not to give in to this.