Things I wish I knew about saving money when I was 20

Your 20s are your prime time when you have the most fun in life. You meet new people, fall in love, travel to places and bring on the fun of spontaneity. Your 20s show you the beautiful phase of life that is filled with heartbreak, love, friendships and many other things. The only thing that’s probably not very definite is your financial status. Saving money in your 20s is not entirely possible for many as this time period entails all kinds of struggles and life balances. You begin to adjust to a newly independent life and this whole process takes a lot of time and effort to settle down.

You won’t be able to lead a life of luxury in your 20s, especially when you are just beginning to get a grasp on your life. Whether you’re in the middle of your college degree or a fresher at your job, it is advisable to avoid buying luxury items.

You won’t automatically start saving money. It is a habit that you have to enforce on yourself. Retaining a habit such as saving money is quite difficult in the beginning but once you do, it’s a great start.

Saving even a quarter of your salary every month is a necessary step to ensure a trouble-free retirement plan in the long run. You may think saving 500 rupees according to your lifestyle may not be a big change, but in the long run, it will matter.

There are multiple life insurances and policies that can prove to be beneficial in the long run. Investing in medical insurance is another compulsory step that you should definitely think about, even though this is something that people tend to miss out on, in their 20s.

When unexpected money like bonuses, or gift money comes into your account, don’t go shopping or buy things spontaneously. Transfer that to your savings account and do not touch it, unless you have a huge emergency. This is one of the best ways to save money.

Here are some things I wish I knew about saving money when I was 20.