Saving in your twenties: how to get a jump start.
EVEN THOUGH IT HAS NEVER BEEN MORE OBVIOUS that saving money is critical to staying afloat in the event of a disaster, more over half of 22-29-year-olds have no money in their savings account.
According to data from the Office of National Statistics, the number of young people contributing to their savings accounts has declined by 12%, with 53% of this age group having no savings at all.
In addition, people in their 20s saved an average of £1,600, which was nearly £5,000 less than the UK average.
It’s difficult for a young adult to save money every month when receiving money in the first place is a problem.
So, how can a young person begin to take complete control of their financial future by saving enough money?
Cash diets, like fad diets, are short-term periods during which one refrains from spending any unneeded money, whether for a week or four months.
This reduces impulse purchases and can help people realize how much money they waste unnecessarily, allowing them to develop effective spending and saving habits.
The majority of this age group’s spending are spent on activities, restaurants, and drinks shared with friends.
Being on a budget, on the other hand, does not have to put a stop to this; just entertaining in someone’s home or in a public place where everyone can contribute to the food, drink, and fun can leave a lot of money on the table at the end of the night.
While it isn’t everyone’s preferred method of saving money, the average UK household spends over £800 on booze each year.
Cutting alcohol out completely can result in a significant savings account, or even avoiding going out to drink can cut the cost in half.
This is especially true when it comes to decorating one’s first home; buying used furniture can help save a lot of money and prevent overspending, such as buying way too many decorations for one wall.
Furthermore, clothing is one of the largest single expenditures in young people’s budgets, and choosing thrift over brand name apparel can result in significant monthly savings.
Traveling and having the impression that the world is at your feet is one of the most exciting aspects of being young, but do your research first.
Budget hotels, attractions, and activities are frequently off the beaten path, so not only will this appeal to you. “Brinkwire News in Condensed Form.”