5 Simple Ways to Save Money in Your 20s

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If there is one important financial goal to work towards, it should be to save as much money as possible. This post will talk about 5 different ways to save money in your 20s.

Oh, the decade of the 20s!

Now, of course, I’m referring to the 20s as in the ages 20-29, not the 1920s, even though there definitely are some striking similarities: partying, flashy clothes, alcohol, and depression.

Anyways, being in your 20s is interesting and confusing. You’re no longer a teen, you have to make really important decisions regarding the rest of your life, some of your friends are married with kids while some friends still live at home, some twenty-somethings make great incomes, and some eat ramen noodles every night, people still call you a kid and make you feel young, and yet everyone expects you to have everything figured out. Whew, that was a lot.

Basically, it’s a strange time to be in.

And, on top of ALL of that, there are finances to worry about. And I mean worry. I can’t be the only one who stays up at night thinking about money.


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So, what’s the trick to saving money in your 20s? Check them out below!

1. Start Saving NOW

Don’t wait until your in your late 20s or even in your 30s to start saving. Waiting to start a savings account is a huge mistake. You should have started saving yesterday!

Now, trust me, I get it. Sometimes it’s hard to save money when you feel like there is barely any money to save. But saving money is an investment in your future. No matter how smart you are, how much you plan, or how organized you are, you don’t know what the future holds.

For me, I had no idea that I would go back to school for a master’s degree in my mid-twenties. The only reason I was able to do that was because I had been saving money for a few years.

I also had no idea that I would start a business in my 20s. The idea had been floating around in my mind for years and when I finally decided to take the leap, I had enough money saved up to fund my startup.

Maybe you will never go back to school or start a business, but I guarantee that you will do something in your future that costs money whether that’s have a wedding, by a car, buy a house, take a vacation, send a kid through college, and the list goes on and on.

Basically, saving money is vital to your financial success. So, here’s what you need to do to start saving money today.

  • Open a good savings account, the highest interest, the better
  • Get into the mindset that it is a good thing to start saving right now
  • Save consistently with your future in mind

Starting a savings right now is the first thing you need to do to save money in your 20s.

2. Create a Budget for Yourself

If you’re like the average twenty-something, you probably don’t have tons of money. That’s okay! It just means you need to monitor where every dollar goes.

Havings a budget is a great way to monitor two important aspects of your finances. First, it helps you make sure that you aren’t overspending in specific areas. Second, budgets help you be wise with how you are spending your money.

Let’s talk about the first part: overspending.

I don’t know about you, but I find that it’s really easy to overspend. Whether it’s a splurge meal or some new purchase, overspending is literally as easy as swiping a credit card.

That’s where a budget comes in.

When you’re on a budget, it’s harder to overspend because you have to make sure that you are meeting your monthly budget goals. That means that before you eat a splurge meal, chances are you will reevaluate and order something cheaper. Same with when you are shopping.

In the moment it might not feel as exciting, but when you reach your financial goals at the end of the month because of your successful budget, it’s going to feel great.

Now, let’s talk about the second part: wise spending.

When you have a budget, you are forced to list out every single dollar you make, every single bill you have, and every single reoccurring purchase. This can lead to some realizations about your spending habits.

Most of the time, when creating a budget people notice that there are areas where their spending isn’t necessarily wise.

For example, when I got married and made a budget for my husband and I, I noticed that we were paying for a gym membership that was never used, a phone plan that was way out of our budget, and we had too many expensive miscellaneous purchases.

I quickly canceled that gym membership, found a different phone plan that was over $100 cheaper, and we started streamlining date night so that it was more budget-friendly.

3. Automate Savings

To actually save money in your 20s you need to do one very important thing: SAVE!

A lot of 20-year-olds talk about saving money, but they never actually create a savings plan. Therefore, savings tends to look like a few bucks here and a few bucks there.

That won’t get you a downpayment on your house or a ticket to your dream vacation.

I get it, it’s easy to forget about saving! After all, when you get your paycheck, you have to pay the bill, pay off credit cards (more on that later), buy groceries, buy gas, buy whatever else you need to that pops up, have a social life, and then hopefully you remember to put some money into your savings!

But the truth is, to successfully save money in your 20s, you need to be putting money into your savings every paycheck.

The best way to make sure you never forget to save money is by setting up automatic transfers from your debit to your savings account.

This takes all of the guesswork out of trying to remember which day to transfer money and how much to transfer.

Most banks will automatically transfer any amount you want starting at only $25 a month. Think about it. If you transfer $25 a month for an entire year, that’s $300 a year into your savings. If you raise that number to $75 a month, that’s $900 saved a year.

You get the point. Automating your savings is the best way to guarantee yourself that money is being saving.

Remember, start NOW! The best way to successfully save money in your 20s is if you don’t put it off and start today.

4. Pay Off Student Loans

What? Spend money to save money? Yes!

It seems like every time someone in my friend group mentions student loan debt, it sets off a session of complaints that leads to heart to heart conversations about how stressful they are.

I get it. When I graduated with my undergraduate degree I felt such a burden from my $30,000 student loan debt bill. I ended up doing tons of research and running a bunch of numbers before coming to the conclusion that financially it would be best for me to pay off my debt asap instead of taking the standard 10 years.

After two years of aggressively paying off my debt, I finally cleared my bill. Being debt-free has literally changed my life. That’s why I strongly believe that to save money in your 20s, paying off your student loan debt should be a primary focus.

One main reason I believe this is because student loan debt racks up so much interest over time that you can end up paying 10k+ on top of the money borrowed.

That’s a lot of money that most twenty-somethings don’t have laying around.

Additionally, paying off student loan debt helps to alleviate some burden from an already heavily burdened generation.

Now, in saying all of this, I completely understand that everyone has different financial situations. I have talked to dozens of people about their student loan debt and no two people have the same situation.

However, the main point I want you to take away from this is that if you have student loan debt, don’t put that in the back of your mind. Instead, face it head-on and make a game plan for paying it off.

Understanding your student loan debt will help you save money in your 20s and hopefully live a little freer in your 30s!


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5. Get a Side Hustle/Multiple Streams of Income

Obviously the more money you make, the more money you can save. So, how do you make more money?

Chances are you already have a full-time job. There’s no need to get another full-time job. Instead, find a side hustle.

Yes. A side hustle. Something that you enjoy and will generate you some extra income. I currently have two side hustles. The first one is this blog and the second one is an e-commerce business. But, I still have my full-time work!

The extra income you make from your side hustle can go into your savings and help you prepare for your future.

So, you might be thinking, “What should my side hustle be?”

The good news is, I have the perfect side hustle for you. I’ve made a blog post with a list of 70 side hustles. Check it out and find a side hustle you’ll love: An Epic List of Side Hustles to Perfectly Fit Your Lifestyle

If you would rather just download the list, that’s cool too because I have a downloadable link for you below:

So there you have it! The top 5 tips to save money in your 20s. What is your favorite tip? I’d love to know!

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