20s bring along more excitement than just about any decade in your life. You finally reach the point where you get to take some decisions on your own and there’s the air of financial freedom that comes when you just start out in the world on your own. While it’s to great to enjoy these years to the fullest and never let a moment go, your 20s are also the time to lay down a strong foundation to ensure you are financially comfortable in your 30s- the decade where you truly unlock your maximum potential. Here are 5 things you can do in your 20s to save some extra cash for your 30s!
1. Save on rent!
It’s okay to want your own space when you just start off in life, simply because you can afford it now. But is it necessary to spend on everything you can afford? Not quite. If you’re keen to move out of your house just to savour the freedom, do so with flatmates and save on rents. Rents are the single largest expense for people who don’t live with their parents and you can easily cut this down to a third or a fourth by living with flatmates. All the money saved can go into savings for your future and some even towards the occasional splurging. Besides it’s a great way to make new friends.
2. Don’t get into the credit trap!
Isn’t it surprising how many calls from credit card companies you start getting the moment you land your first job. While it’s a great idea to have a credit card, it’s an equally worse thing to have if you can’t be mindful about how you use it. Be strict with yourself when it comes to being within 40% of your credit limit and don’t get into the trap of revolving your debt by paying off only the minimum dues. You’ll only get into the never ending downward spiral of credit fatigue.
3. Setup a rainy-day fund!
The sooner you start this the better but start this nonetheless! A general rule of thumb is to save at least two months of your salary every year as a rainy-day fund, just in case the going gets tough sometimes, or there is a sudden and unexpected expense that you couldn’t avoid.
A simple saving like this can just be the biggest pillar of financial safety you have when you are in your 30s and 40s.
4. Look at additional sources of income!
Not that you should take time out of your full-time job for an additional avenue of income, but there are loads of part-time and weekend work opportunities out there that can help you make a quick something in your spare time. At the end of the day every penny counts and with a little bit of an aggressive push, you could actually end up creating steady savings that make your 30s just a bit more comfortable.
5. Splurge, but with a hand on the brakes!
What’s the point of earning if you can’t pamper yourself to a little bit of materialistic comfort every once in a while. But this pampering can quickly escalate into a habit, forcing you wreck your credit and break into your savings, so proceed with caution. Keep a separate account for splurging every once in a while, and when the account reaches a substantial amount, treat yourself to something nice that you’ve been eyeing for a while.
