5 Ways to be Smart With Money in your 20s

Between your overly exciting entry-level job and your debilitating student loan debt, saving and investing may seem like a far-fetched idea for many 20-somethings finding themselves in this position. We know you’ve been hearing it from your grandparents since you turned twelve, but seriously, starting to save as early as possible will help to lead you towards a financially-comfortable future.

If it is feasible, spend a few years back at home.

If you get along with your parents, and your job is driving distance from their house, moving back home for a few years might be something that you should consider. Yes, you may have to deal with their questions and nagging, but it will give you the opportunity to save a few years of rent. While it is fun and exciting to be out on your own, we always seem to underestimate the costs until we are unable to pay the rent and crossing our fingers we get invited to dinner.

Pay yourself first.

A little something is better than nothing. Do not be discourage if your savings is growing slowly, try not to pay too much attention to the total number and rather focus on being consistent with putting some away. Start with automatically saving $25 per week (that is literally just a few lattes, I think you can bare it) and by the end of the year you will have a nice $1,300 cushion in case of emergency. If you get a yearly raise, consider putting the extra towards your savings — if you think about it, you’ve already been living without that chunk of change so if you never get used to spending it there is no chance to miss it. As Warren Buffet says, “Don’t save what is left after spending, but spend what is left after savings.”

A little side hustle.

Your 20-somethings are a time when you really have little responsibility in the grand scheme of life — it is likely that going to work and maintaining your happy hour schedule are your only real responsibilities. Given the extra time that you have try to get creative with how you can earn some extra cash on the side. Do you have a niche for blogging? Are there some kids in the neighborhood that you can babysit? Dogs that need walking? It might sound amateur, but a few hundred extra dollars per month can go a long way when your paycheck is running low.

Find a good partner.

Again, your grandparents have been telling you this for years, and yes, we are going to nag you about it again. Finding a partner that is financially responsible and on the same page as you is extremely important for a financially stable future and a healthy and productive relationship. We aren’t suggesting that you be shallow, but if you know someone is not good for you, don’t waste your time — the last thing you want to do is wake up a few years down the line in an unhealthy and financially draining relationship.

Pay off Student and Credit Card Debt as fast as possible.

This can be a tough one if you don’t have any disposable income after paying yourself first but we are building an app to help with that. Every time you have a checking account transaction or use your debit card, the app rounds up the transactions to the nearest dollar and automatically uses the change to pay off student and credit card debt. My round ups total about $25 a month, that is $300 a year. Times this by the number of years you have to pay back your debt, voila magic happens. Learn More www.getcoinstash.com