20-somethings are at an interesting point in their lives regarding money. For the first time, more money is coming in than going out (or should be!), but we don't have those huge expenses like real grown-ups (mortgages, kids, kids' college funds, country club dues...whatever!). My take on this time is to save, save, save! I know I'll be buying a house and all the fun expenses that go along with it; buying furniture and redecorating. When I recently moved, I chose to take an apartment that was half as much in rent as I was previously paying. It wasn't the glamorous doorman building with a roof top deck in the heart of downtown that I once had, but my bank account is thanking me. I began to think, what other ways can those of us in our 20's cut corners so we'll thank ourselves later?
1. Set an amount each month to save. Pretend your savings is a bill that you have to pay each month. It doesn't have to be a lot, just a little something each month to put away. As you learn to cut corners, increase that amount.
2. When you get a salary increase, act like you didn't. Put that extra amount away. You lived without it before, you can still live without it now.
3. Pack your lunch! That $10 a day adds up very quickly and can be easily avoided by packing.
4. Don't live beyond your means. It may be fun to get the expensive car, purses, clothing...but do you need it? Check out online auctions sites or brand name discount stores to score deals on things.
5. Use coupons! Sometimes grocery stores offer to double coupons.
6. Don't use credit cards. Credits cards are a dangerous way to get yourself into trouble. A good rule of thumb is, if you can't afford it cash, you don't need it. If you do use credit cards, pay them off in full each month to avoid the seriously hefty interest.
7. Keep about 6 months worth of expenses in your savings. Once you have more than that...invest! Obviously there are risks with investing, but the payoffs can be huge. If you can afford it, start with a simple mutual fund and work your way up to stocks.
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Ciao!!
So true!
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