{"id":27284,"date":"2023-05-03T07:53:43","date_gmt":"2023-05-03T06:53:43","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=27284"},"modified":"2023-05-03T07:53:45","modified_gmt":"2023-05-03T06:53:45","slug":"ways-to-save-money-in-your-20s","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/","title":{"rendered":"12 Best Ways to Save Money in Your 20s"},"content":{"rendered":"\n<p>Savings are a crucial part of money management. The earlier you can start to build financial habits, the better. Research shows that 47% of adults aged between 18-24 have little (less than \u00a31,000) or no savings.<\/p>\n\n\n\n<p>Money is still a stigma for many people, and discussions can often prompt fear or judgement. We&#8217;re here to tell you that it doesn&#8217;t need to be that way.<\/p>\n\n\n\n<p><strong>Saving money can be hard, especially in your 20s<\/strong>, but this article will break it down step by step and hopefully in time, it will become second nature.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f2854fcf88d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f2854fcf88d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#why_is_it_important_to_save_money_at_an_early_age\" >Why is it important to save money at an early age?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#how_to_start_saving_money_in_your_20s\" >How to start saving money in your 20s?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#1_create_a_budget_and_stick_to_it\" >1. Create a budget and stick to it<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#2_open_up_a_savings_account_and_set_up_automatic_contributions\" >2. Open up a savings account and set up automatic contributions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#3_start_with_cash_savings\" >3. Start with cash savings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#4_set_aside_20_of_your_income_for_savings\" >4. Set aside 20% of your income for savings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#5_spend_frugally_in_your_20s\" >5. Spend frugally in your 20s<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#6_build_an_emergency_fund_with_your_savings\" >6. Build an emergency fund with your savings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#7_pay_off_debt_immediately\" >7. Pay off debt immediately<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#8_create_a_debt_reduction_plan\" >8. Create a debt reduction plan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#9_create_smart_financial_goals_for_your_20s_and_allocate_funds\" >9. Create smart financial goals for your 20s and allocate funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#10_consider_retirement_and_investing\" >10. Consider retirement and investing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#11_establish_the_habit_of_saving_money\" >11. Establish the habit of saving money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#12_start_saving_for_long-term_goals\" >12. Start saving for long-term goals<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#how_much_should_a_20_year_old_save\" >How much should a 20 year old save?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/ways-to-save-money-in-your-20s\/#final_words\" >Final words<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"why_is_it_important_to_save_money_at_an_early_age\"><\/span><strong>Why is it important to save money at an early age?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Saving at an early age is vital for several reasons. Firstly, it helps to develop a habit of responsible money management that can last a lifetime. When you <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-save-money-fast-on-a-low-income\/\" target=\"_blank\" rel=\"noreferrer noopener\">start saving early<\/a><\/strong>, you learn the value of money and begin to build your personal finance.<\/p>\n\n\n\n<p>Secondly, it can help you achieve your <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-set-financial-goals\/\" target=\"_blank\" rel=\"noreferrer noopener\">financial goals<\/a><\/strong>. Whether you want to buy a car, go to university, or put a down payment on your first home, starting early gives you more time to save and take advantage of compound interest to grow your savings over time.<\/p>\n\n\n\n<p>Additionally, unexpected expenses and emergencies can happen at any time, and having extra money can help you deal with them without going into debt or relying on others.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_to_start_saving_money_in_your_20s\"><\/span><strong>How to start saving money in your 20s?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Building a solid financial foundation for your future is crucial. <strong>Here are some tips to help you manage your money in your 20s:<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_create_a_budget_and_stick_to_it\"><\/span><strong>1. Create a budget and stick to it<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"532\" height=\"399\" src=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Create-a-budget-to-save-money-in-20s.jpg\" alt=\"Create a budget to save money in 20s\" class=\"wp-image-27285\" srcset=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Create-a-budget-to-save-money-in-20s.jpg 532w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Create-a-budget-to-save-money-in-20s-300x225.jpg 300w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Create-a-budget-to-save-money-in-20s-80x60.jpg 80w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Create-a-budget-to-save-money-in-20s-265x198.jpg 265w\" sizes=\"(max-width: 532px) 100vw, 532px\" \/><\/figure>\n\n\n\n<p>If you\u2019re not a spreadsheet kind of person, try apps that help you budget. These apps connect to your bank account so you can see everything in one place. The most important aspects of budgeting are knowing what you earn and knowing what you spend.<\/p>\n\n\n\n<p>Check bank statements and receipts to see exactly how much you are spending each month. Look at your household bills, rent or mortgage payments, and credit card payments and how much you are spending on other essentials such as <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-save-money-on-food\/\" target=\"_blank\" rel=\"noreferrer noopener\">food<\/a><\/strong>, petrol, toiletries, pet food, etc.<\/p>\n\n\n\n<p>Then subtract your monthly expenses from your income. Your income isn&#8217;t just limited to your salary but can include your investment account, cash gifts, retirement savings, child benefits etc. This will determine your next steps.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_open_up_a_savings_account_and_set_up_automatic_contributions\"><\/span><strong>2. Open up a savings account and set up automatic contributions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Think of this like a &#8216;set it and forget it&#8217; approach. Automation takes the conscious decision to save off your plate and help your money grow. Once you have enough money, you can decide what to do with your savings, for example, you can start investing, use it for a down payment or use it as a retirement account.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_start_with_cash_savings\"><\/span><strong>3. Start with cash savings<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"532\" height=\"399\" src=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Do-cash-savings-to-save-money-in-your-20s.jpg\" alt=\"Do cash savings to save money in your 20s\" class=\"wp-image-27286\" srcset=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Do-cash-savings-to-save-money-in-your-20s.jpg 532w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Do-cash-savings-to-save-money-in-your-20s-300x225.jpg 300w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Do-cash-savings-to-save-money-in-your-20s-80x60.jpg 80w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Do-cash-savings-to-save-money-in-your-20s-265x198.jpg 265w\" sizes=\"(max-width: 532px) 100vw, 532px\" \/><\/figure>\n\n\n\n<p><strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/1p-saving-challenge\/\" target=\"_blank\" rel=\"noreferrer noopener\">A penny saved is a penny earned<\/a><\/strong>. One way to save is to start paying with cash and popping your change into a jar. Over time it\u2019ll accumulate without you trying and could come in handy when you need it most.<\/p>\n\n\n\n<p>That said, we know that cash payments are becoming less favourable, so you could try the <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/52-week-money-saving-challenge\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/52-week-money-saving-challenge\/\" rel=\"noreferrer noopener\"><strong>52-week savings challenge<\/strong><\/a>.<\/p>\n\n\n\n<p>You start by putting in \u00a31 and adding \u00a31 every week. By adding \u00a31 in week 1, \u00a32 in week 2, \u00a33 in week 3, and \u00a34 in week 4, you manage to save \u00a310 a month. While \u00a31 may look small, it adds up to \u00a31,378 by week 52.<\/p>\n\n\n\n<p>You can use these tips while doing part-time gigs along with studies. This can help you save money for your laptop simply to have emergency savings.<\/p>\n\n\n\n<p>While cash savings may be effective in getting you into a habit, they are inefficient as you miss out on the passive income investments can generate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_set_aside_20_of_your_income_for_savings\"><\/span><strong>4. Set aside 20% of your income for savings<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You can convert the savings jar into a more organized savings plan. When preparing your monthly budget, try adopting the 50\/30\/20 rule, where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>50% of your income is allocated for essentials like food, rent, utilities, and local travel.<\/li>\n\n\n\n<li>30% is allocated towards wants like shopping for new shoes or dining out.<\/li>\n\n\n\n<li>20% is allocated towards savings accounts like retirement, emergencies, and financial goals.<\/li>\n<\/ul>\n\n\n\n<p>When you live paycheck to paycheck, you might not be able to stick to your budget. &nbsp;To help, you can create a separate savings account to transfer 20% of your income. If you earn \u00a32,500 per month, move \u00a3500 and consider your salary to be \u00a32,000, and prepare your expenses around that.<\/p>\n\n\n\n<p>Adjusting to a lower income might look difficult but spending frugally for a few years can bring long-term gains.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_spend_frugally_in_your_20s\"><\/span><strong>5. Spend frugally in your 20s<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Spending frugally doesn\u2019t mean you have to sacrifice everything, it\u2019s about readjusting and finding a balance in your spending. For example, Instead of dining out, you can opt for a dinner party at home or a potluck. Swap club nights for game nights, and skip purchasing new clothes for thrifted gems.<\/p>\n\n\n\n<p>Choosing a less expensive option can help you <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/best-ways-to-cut-back-on-expenses\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>reduce expenses<\/strong><\/a> and manage your budget within 80% of your salary. Now that budgeting is in place, the next step is to focus on the 20% set aside for savings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_build_an_emergency_fund_with_your_savings\"><\/span><strong>6. Build an emergency fund with your savings<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As a rule of thumb, you should set aside six to nine months of your living expenses in an emergency fund. It will give you the flexibility to meet basic needs if you lose your job. The emergency fund can help you avoid missing payments such as utility and rent that could hurt your credit score. If you have exhausted your emergency fund, you could consider <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/emergency-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>emergency loans<\/strong><\/a> to meet unexpected expenses but repay them on time to avoid falling into debt.<\/p>\n\n\n\n<p>27% of 18 to 24-year-olds most likely have \u00a31,000 or less set aside for emergencies. This is a risky financial position as people use debt to pay for necessities. While saving for an emergency fund is important, it is equally important to avoid getting caught up in a credit card debt spiral.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_pay_off_debt_immediately\"><\/span><strong>7. Pay off debt immediately<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Debt is a double-edged sword. It can help you build your credit score if managed well or push you to financial stress if not managed well. If you have a credit card loan or student loan, make it a priority to channel all your surplus cash to accelerate repayments, as student loans will only be written off when you\u2019re 65.<\/p>\n\n\n\n<p>Experts suggest spending 20% of your pay towards debt repayment. You can also consider consolidating your debt from various accounts to one account to make it easier to track and repay instalments.<\/p>\n\n\n\n<p>Accelerating your loan repayment will help you reduce interest expenses, leaving you with more money to save for other financial goals. A lower debt can enhance your credit score, giving you favourable credit terms from landlords, banks, and lenders.<\/p>\n\n\n\n<p>It is a good habit to check your <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/credit-report\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>credit report<\/strong><\/a> frequently to find discrepancies and fraudulent activities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_create_a_debt_reduction_plan\"><\/span><strong>8. Create a debt reduction plan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you have a significant amount of debt, whether from credit cards, a mortgage, <strong><a href=\"https:\/\/www.lendingstream.co.uk\/loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">loans<\/a><\/strong>, student loans or otherwise, it&#8217;s important to work towards a debt-free life.<\/p>\n\n\n\n<p>One way to do this is by focusing on the debts with higher interest rates and starting at the top of the list. This is also known as the avalanche method. By putting your high-interest debts first, you will eliminate the ones that cost you the most each month.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_create_smart_financial_goals_for_your_20s_and_allocate_funds\"><\/span><strong>9. Create smart financial goals for your 20s and allocate funds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once you have a stable <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/emergency-fund\/\" target=\"_blank\" rel=\"noreferrer noopener\">emergency fund<\/a><\/strong> and control your debt, you can focus on saving for other goals like buying a car, or house or saving for retirement. You can create Smart (specific measurable, attainable, realistic, time-bound) financial goals and allocate funds among different goals, depending on time frame and importance.<\/p>\n\n\n\n<p>For instance, at age 20, retirement is a goal that is important but not urgent. But don\u2019t leave saving for retirement for later. You may allot a slightly lower amount in a retirement plan and a higher amount in short-term goals like paying annual rent.<\/p>\n\n\n\n<p>As we said before, early savings could convert \u00a3500\/month into a retirement fund of more than \u00a3728,000. Seek ways to <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/5-simple-ways-help-boost-income\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>boost your income<\/strong><\/a> by building more than one income stream. Explore the various non-traditional gig works, like getting paid for taking a survey or using a website. It doesn\u2019t impact your studies or main job and pays you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_consider_retirement_and_investing\"><\/span><strong>10. Consider retirement and investing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"532\" height=\"399\" src=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Consider-retirement-and-investing-when-saving-in-your-20s.jpg\" alt=\"Consider retirement and investing when saving in your 20s\" class=\"wp-image-27287\" srcset=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Consider-retirement-and-investing-when-saving-in-your-20s.jpg 532w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Consider-retirement-and-investing-when-saving-in-your-20s-300x225.jpg 300w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Consider-retirement-and-investing-when-saving-in-your-20s-80x60.jpg 80w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/05\/Consider-retirement-and-investing-when-saving-in-your-20s-265x198.jpg 265w\" sizes=\"(max-width: 532px) 100vw, 532px\" \/><\/figure>\n\n\n\n<p>Retirement feels like an age away when you&#8217;re in your 20s but it&#8217;s crucial to think about retirement accounts for your future. It&#8217;s tempting to spend money now, but it&#8217;s not always wise. If you&#8217;re not sure where to start, you could seek help from a financial advisor.<\/p>\n\n\n\n<p>They should be able to give options in regard to a retirement account as well as other options available to you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"11_establish_the_habit_of_saving_money\"><\/span><strong>11. Establish the habit of saving money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you follow any of the above-saving tips, you&#8217;ll be on your way to establishing a habit. On average it can take from 59 to 70 days to build a habit, so if you can spend less money over the course of three to six months, you&#8217;ll find yourself closer to your goals.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"12_start_saving_for_long-term_goals\"><\/span><strong>12. Start saving for long-term goals<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>We know it can be hard, especially if you&#8217;re living paycheck to paycheck but saving for the long term is a step in the right direction. Your savings goals will be personal to you, you might want to save for a holiday, or pay a chunk towards your mortgage, or even have a pot set aside for the winter months.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_much_should_a_20_year_old_save\"><\/span><strong>How much should a 20 year old save?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The amount a 20 year old can save will vary, but generally speaking young adults in their 20s should allocate <strong>10% <\/strong>of their income to savings. Finances can be tricky to manage at a young age, but we hope we&#8217;ve helped you see that it&#8217;s doable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"final_words\"><\/span><strong>Final words<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Your 20s are the best time to earn, invest and train yourself financially. You might make some <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/common-financial-mistakes-to-avoid\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>financial mistakes<\/strong><\/a>, but you have time to rectify them and learn from them.<\/p>\n\n\n\n<p>The choices you make today, and the money habits you form, will go a long way in securing a happy, stress-free life for yourself.<\/p>\n\n\n\n<p>Here\u2019s wishing you a bright and happy financial future!<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> The information given above is provided for reference only. This is not financial advice.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Savings are a crucial part of money management. The earlier you can start to build financial habits, the better. Research shows that 47% of adults aged between 18-24 have little (less than \u00a31,000) or no savings. Money is still a stigma for many people, and discussions can often prompt fear or judgement. We&#8217;re here to [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":27288,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[139],"tags":[],"class_list":["post-27284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27284"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=27284"}],"version-history":[{"count":1,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27284\/revisions"}],"predecessor-version":[{"id":27289,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27284\/revisions\/27289"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/27288"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=27284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=27284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=27284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}