Your 20s and early 30s could well be the age of financial freedom. You’ve kicked off your career and are experiencing the earning – and spending – potential that comes with it.
Saving at these early career stages is about balance – maximise what you have now to achieve the lifestyle you want, whilst also getting into a healthy savings habit for the future.
It’s only natural that your short term goals are more of a priority – but don’t forget about those medium and long-term goals. Time is on your side, but the longer you wait to set those long-term goals, the harder it’ll be. Unbiased looks at the cost of delay for something like saving for your pension.
- Set yourself a monthly budget – the Money Advice Service’s budget planner can help you get a handle on your spending and get in control of your money.
- Don’t take too big a bite from your income each month – achieve the right balance between earning, spending and saving.
- Don’t forget – this balance is different for everyone so achieve what’s right for you.
- According to Unbiased, you should look to save between 5-20% of your monthly earnings towards your medium and long-term goals – even saving a small amount will get you into that healthy savings habit.
- Have an emergency fund – a security blanket that’ll get you through any sticky patches like a broken-down car or new boiler.
- If you’re considering children or buying a new home, you might want to start building a ‘baby fund’ or a ‘house fund’ with savings vehicles like ISAs.
- Keep on track of your money – use a budgeting app to analyse what’s coming and going and what you might have spare to save.
Your financial wellbeing can have a positive effect on your mental wellbeing too. So have a think about your own goal-setting using our tips and give your future self a boost.