Your twenties are an incredible time in your life. This is the time when you’ll be wrapping up your studies and exploring the possibilities of a new career. You could also be thinking about moving into your new place – or putting a deposit on your first apartment.
However, women who want to get the most out of their lives need to make sure that they’re prepared for what the future holds. That means saving towards your future now, even though you still feel young and invincible. Being disciplined about your savings is crucial for women, because there’s still a chance that you could earn less than men in some jobs. At the same time, women live longer than men, so they need more cash aside for retirement.
Here’s how you can get started in your twenties.
1. Create Your Emergency Reserves
First things first, you need to ensure that you’re ready for anything. That means having some cash aside that you can tap into should the worst happen in your life. Put some money aside in a separate savings account so you know it’s there when you need it. Although it can take a while to build up an emergency savings fund, you’ll be glad that you have it the next time you have a sick pet that you need to care for, or a broken car to repair.
Your emergency savings fund should cover about 3 to 6 months of your typical earnings. Try to focus on filling this fund before you look into things like saving cash towards a new car or home.
2. Decide What You’ll Say “Yes” To
A lot of women assume that savvy budgeting is all about saying “no” to as many things as possible. For instance, you’ll need to start saying no to the things that you can’t afford, like expensive meals out with friends, designer clothes, and other luxuries. However, you can still say yes to the things that are important to you.
For instance, if you want to work on improving your career or getting a better job, taking out a loan so you can travel further for work in your new car makes sense. Just make sure that you know how the money you’re spending is going to pay off in the long-term. Decide what’s important to you, and don’t be afraid to say yes when you need to.
3. Always Have a List
Lists are helpful in many different parts of life. A list of pros and cons can help you to make an important decision, while a shopping list can ensure that you don’t spend money on the things that you don’t really need. Before you go shopping for groceries, make sure that you know which meals you’re going to be cooking in the week or month ahead, and what you need. It’s also worth double-checking to see whether you have any items in your home already.
Remember that you can also use lists for other types of shopping too. For instance, if you’re buying gifts for Christmas, creating a list of what you want to buy and how much you want to spend can help.
4. Be Patient
Patience is a virtue that most women need to learn how to cultivate. In today’s world of instant gratification, it’s much too easy to buy something that you want the moment that you see it online. After all, most of the time, all you’ll need to do is click a button to make a purchase. You can even flash a card in person and buy something in seconds.
However, this fast-paced world also means that it’s very easy to make impulse decisions. Next time you’re thinking of buying something, give yourself a period of 24-hours to think it over carefully. If you still want the item after the day is up, you can start doing your research into it.
5. Make Saving Automatic
Finally, most women have chaotic lives to contend with these days. We have families to look after, jobs to keep track of, and dozens of other personal commitments to deal with. It can be all-too-easy to forget about saving completely. However, you can simplify things by making your saving strategy automatic. Speak to your bank about setting up an automatic transfer that sends a certain amount of cash from your checking account into your savings each week.
If your money gets saved automatically, you’re less likely to miss it, and more likely to stick to your saving strategy
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