When you’re in your 20s, you will most likely be on a limited income. You may even be struggling on a minimum wage. That’s a problem because according to experts, you should be saving up to 20 percent of your income each month. This means experts recommend that a significant portion of your income is stored away for the future. Unfortunately, for many people, this just doesn’t seem realistic. With the bills, the unexpected costs and the little things we need, there never seems to be a lot left at the end of the month. How should you deal with this?
How many times in your 20s did you find yourself on your last $50 scraping the barrel till payday? Looking back, you probably spent a lot on things you didn’t really need, like monthly bedroom design updates.
These habits are simply unsustainable. Now that you’re getting older, wiser and more responsible it’s time you built in some good savings habits. Read on for some real tips that take into account the fact you still want to have fun on the weekends.
Get A Second Income
You should certainly think about setting up a second income for yourself, especially if you are single. Financial experts tend to agree that without a second income, you will struggle with both spendings and savings each month. We’re not suggesting that you start working both days and nights. Instead, you should be looking for a side hustle. This is something that you can accomplish in your spare time to add a little extra cash. An example of this would be tutoring. If you have any academic skills, then you can easily make a little extra money helping students get passing grades.
If you can afford to survive with your first income, make sure you put all the money accumulated from your side hustle into savings. Don’t fall into the trap of just spending more of the money you make.
Build Your Brand
Obviously one of the best ways to deal with a low income is to make sure that it rises in the future. To do this, you need to think about how to obtain a greater position in your career. You can accomplish that by building up your brand online, getting the right attention from potential employers.
Consider setting up your own website. With a website, you will be able to build up a career history and highlight some of your unique skills that will make you a valuable asset. Setting up a website doesn’t need to cost you anything but paying a little extra could ensure that you gain significantly more leads online.
Buy Into Budgeting
Finally, you might discover that the reason you’re struggling on a low income is due to the fact that you are simply not budgeting effectively. Here’s how to budget.
- First, think about how much you make each month, then subtract all the bills you know about and a 100 or so extra for the ones that could take you by surprise.
- Once you have done this, you should then halve the amount left and put that towards savings. Don’t worry if it’s a fairly small amount, every little will help in the grand scheme of things.
- The money in the account after this is what you have to spend on little luxuries. It won’t be a lot, and you’ll be tempted to crack into those savings.
- That’s why you should treat savings as a tax, a direct debit that leaves your account at the end of each month. That way, you’ll have no choice but to save.
Take this advice, and even on a low income, you should find saving is a lot easier.
Thus, you can see simple changes have a direct impact on your budget and savings.
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