The journey of adulthood is long and hard, but there are also good times in between. It’s tempting to spend all your cash once you start earning. The lure of designer bags, gourmet food and travel time with your buddies is far too strong to deny.
But keep in mind you should start saving even when you’re only in your 20s. It’s a given that you’ll spend money on accommodations such as hostels in your London City Centre location, utility bills, food, everyday clothing, and transportation.
You should still set aside some money for future use. Below are some reasons you should start saving in your 20s.
Prepare for the Rainy Days
You may not realise this now, but your savings can help you in case you get sick or have some financial difficulties in the future. You may reason that you’re living a healthy lifestyle, or you’ve got a great job, but no one knows what the future holds. Saving for the rainy days can help you in times of trouble.
Anyways, if you don’t face financial difficulties, then you can add the savings to your retirement fund. The sooner you start saving, the higher your chances are to retire early (in case you want to) or use the money to start a business.
Saving your money may also mean investing it in the stock market or insurance which you can all earn from as long as you play your cards right. Just make sure you know how to navigate the stock market scene before you take risks.
Saving Now to Enjoy Later
It’s nice to travel once in a while and enjoy the finer things in life but remember that you’ll enjoy this more when there’s more money to spend which you’ll have if you practice saving at a young age. Buying only the things you need allows you to save more money.
You can enjoy more quality items in the future when you use your money now for savings and investment because your money will have some interest earned. More so, you can put in more time for work or some moonlighting so that you can double your savings. Learn to say no sometimes to your friends, especially when you need to shell out a lot for just a night of fun.
Likewise, encourage them to stay in or visit each other’s places where you can prepare your meals, so it’s cheaper.
Life Gets Easier When You Start Saving
Lastly, investing earns you more money when you start it young. You’ll make a lot when you invest in your twenties because your interest is also earning interest. Furthermore, it’s multiplying because you add more money to it every month.
Ideally, you withdraw your cash when you get to 65 years although it’s possible to get it when you’re still young.
Consider saving at a young age if you’re thinking about a good future for you and the family you want to have. Don’t think about saving for a house when you already want one. Instead, save up even when you have no concrete plans yet.
Saving is saving even when there isn’t a plan on how to use it. Just let your money grow and stay intact for future endeavours. After all, it’s much better when you have money to pull from your pocket when you need it most.