Budgeting 101: How to Save in your 20s
If there’s one thing we all learned in 2020, it’s that having money saved for a rainy day is important. You never know when an emergency, or in this case a global crisis, may happen.
If you’re about to start saving in your 20s, congratulations! The earliest time is the best time to start. To help you unlock this #adulting skill, here are 6 of our best tips:
1. Determine your saving goals
Before you start setting aside money for savings, figure out exactly what you’re saving for. Is it for retirement? Are you trying to buy your first new home or car? Is it for a dream holiday? Are you saving up to start your own business? Is it for rainy-day savings?
Your savings objectives determine the amount and the timeline of your savings. Long-term savings need not be as aggressive or much while short-term savings should be. Keeping an objective or goal in mind would also help keep you on track.
Related: How to Save Money From Salary
2. Try ipon challenges for short-term savings
If you’re saving up for a vacation or a quick rainy day fund, make saving fun through an ipon challenge. These fun little challenges keep you motivated while you build the habit of paying yourself first.
Check out our article on 3 Best Ipon Challenges for 2020
3. Go beyond traditional savings accounts
A lot of people think that savings should go directly to their ATM or savings accounts with banks. While this isn’t necessarily a bad thing, it may not be the best thing in terms of growing your money, especially for long-term savings.
If you’re considering placing a percentage of your monthly salary into savings goal like retirement, ask your bank, local insurance & investment company, or even Pag-IBIG for products that can help you grow your money instead of having it just sit there.
4. Use a money tracker
There’s an app for everything nowadays and that includes money tracking. With a money tracking app, you can see exactly where your money comes from and goes to whether it’s salary, savings, debt, or expenses.
Choose apps that give you easy-to-understand and neatly organized charts monthly so you don’t get overwhelmed with so many numbers and categories. As you compare these charts and see the patterns of your monthly saving VS spending, you can start cutting back or reallocating your money to help you get to your saving goals faster.
Related: Money Tips in the New Normal
5. Use a mobile wallet
Mobile wallets like Coins help you track your money History, get alerts when bills are due (Favorites feature), and get instant rebates for things like bills payment and buying prepaid load.
Related: What Can You Do with a Coins Wallet?
Remember that late payments are costly due to penalties and other fees so you need all the help you can get to stay on track! And of course, who doesn’t want to earn back some of the money they’re going to spend anyway?
6. Find the right money guru
With so many people claiming to be money gurus online, it’s easy to fall for quirky marketing gimmicks and video testimonials of their supposed clients. Remember if these money gurus start to sell you systems that will change your life, chances are it’s a scam.
If you truly want to find professional services to help you manage your money, you’re better off looking for a local Certified Public Accountant, Certified Financial Planner, or Stock/Investment Broker
Questions or feedback? Email us at firstname.lastname@example.org or tap Send us a message in your app. Our operating hours are from Monday – Friday, 9AM – 6PM
Coins.ph is regulated by Bangko Sentral ng Pilipinas (BSP). BSP Financial Consumer Protection Department: (02) 708-7087 or email@example.com