Money saving tips for people in their 20′s

Some things are obvious- don’t drink yourself into a coma regularly. Try not to damage your brain permanently with all manner of illegal substances. Don’t leave yourself with a permanent limp due to some escapades involving a stairwell and an impossible dare. But what actions are you taking in your 20s that hamper your finances? What mistakes could you avoid, to improve your financial situation by the time you’re thirty?

Here are some suggestions.

Doing a degree, any degree

If you hated school, can’t be bothered studying, and have no real direction, uni may not be the ticket. Instead, consider an apprenticeship. At around the same time that everyone around you is graduating with a $20,000 debt, you’re finishing up accredited in a trade and with some savings because you’ve been working all that time. You may not do it the rest of your life, but you’ll always have something to fall back on.

Trash others, or yourself on Facebook

One quick Google, and you’re out of the employment picture for a while. Remember that the Web is always public, no matter how private it seems at the time.

Accept any job

You’re straight out of uni, or you’re worried this will be your own shot. So you accept a job you don’t really like, or that is a little mediocre compared to what you were hoping for. When you’re young, it’s a perfect opportunity to aim big. Don’t be unrealistic, but don’t take second-best straight away either.
In a similar vein, once you have accepted a job or found one you like, negotiate. Learn how to do it early, and your finances will thank you for it. Just ask. The worst that can happen is that they say no.

Go guarantor

So he’s your best friend and he needs a guarantor for his car loan. It may seem like the right thing to do, but if he defaults, you’re going to end up with debt and a strained relationship with the best friend.

Pay off a credit card with a credit card

Getting into the endless rigmarole of credit cards, and paying off debt with a loan, will invariably end badly. Don’t go down that path. Better to scrimp and save and pay the cards off than dig yourself further into debt.

Refuse to buy used cars

Whatever. If you’re really a young person, I can’t imagine you making this argument. I don’t know anyone who owns a car that wasn’t used first. With a bit of research, you can find yourself a nice, functioning car that’s just been broken in by someone else.

Don’t go to the doctor

I’m not suggesting hypochondria here, but a check-up once a year will benefit you in the long run. You haven’t got a degree in medicine so don’t self-medicate as if you do.

Spend six months salary on an engagement ring

I think if someone spent that much money on an engagement ring for me, I’d be bewailing the wasted trip to Europe. If that’s all that’s going to impress them, think again before you yoke your load to theirs. They sound like hard work.

Buy your first home without an emergency fund

Buying a first home might be a stretch anyway, but it’s going to be all the harder should anything else come up. And as soon as that’s your situation, something will come up. Always have a back-up fund for emergency.

What are your tips for people in their 20s?

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