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5 Tips On Establishing Good Saving Habits In Your 20s

July 20, 2022

Many of us don’t really realize the value of good saving habits until we are in our 40s. Some may have just materialized this concept a few years before their retirement.

Establishing financial security at a young age, however, will save you all the trouble in your later years. It doesn’t have to be very dramatic. In all honesty, grasping the basic saving skills will make all the difference in your pocket and will help you make informed decisions with every cent you spend.

Here are 5 money habits I personally swear by (and wish I knew earlier) to help you take control of your finances at a young age.


1. Create a personal budget.


Every month, money comes in and comes out of your bank. Hence, it is important to get your finances monitored so you can create a plan that prioritizes important expenses and stay on top of your bills.

By also doing so, you can also save yourself from impulse purchases or overspending on things that you don’t really need and eventually end up in debt.

Creating a budget may require extra work but if you can stick to it and become accustomed to living within your budget, you’ll find yourself less stressed and easily move towards your financial objectives.


2. Live below your means.


Jay-Z said “if you can’t buy it twice, you can’t afford it.” This is debatable especially if it’s really a very important purchase but it is actually a good rule for most items that you consider purchasing.

Unexpected expenses may arise every now and then so you should avoid putting yourself in a position of ruining your budget. There may be risks involved in spending above your means especially if you are on a tight budget. Thus, you should learn your needs vs your wants and spend accordingly so you can have enough money for your savings..


3. Build your emergency fund.


With enough cash available to cover emergencies or unforeseen expenses like home repair, broken car or job loss, you can avoid borrowing money and not go further into debt.

Start small depending on your current financial circumstances and keep it in a separate savings account. You can always work your way up and build a higher fund in case of emergencies.


4. Save first and spend later.


This is an essential habit to ensure you really achieve your monthly saving goals. As soon as you get your wage, put aside a set amount and deposit it into your savings. This way, you can minimize your risk of spending rashly and forgetting to contribute to your personal savings.


5. Map out your financial goals.


Knowing what you want in the now and in the long run will encourage you to be more disciplined in your spending habits. This will also motivate you to pursue a better career with better pay to match whatever your goal is.

Create a financial plan with short-term and long-term goals so you know exactly the direction of your efforts in savings.



When you start to earn, the temptation to splurge may be your automatic response to the excitement of finally having your own money. Your 20s, however, is a specially crucial time to educate yourself with good saving habits. Follow our tips and set yourself early for financial success.


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