At early 20s, you enter the workforce. Your salary is usually at entry level. Making smart choices at your 20s can help you to set you up long-term success which includes creating a plan to pay off your student loans, building an emergency fund, avoiding credit card debt, and working towards your hitting bigger goals.
Therefore, it is good to enjoy your money in your early 20s. However, your parents are right when they ask you to start saving. Start with these basic rules:
Keep aside your 10-20% of your salary
When you get your salary in hand, assume that 80-90% of your salary is available to you. Keep the rest of your salary aside. It not only saves your money but also you can make the use of your money for other projects as well.
Have some goals to save money
Make a seperate lists of big expenses like iPhone. Using big goal lists, you can get a clarification of how to build a money saving habit.
Setup an emergency fund
Establish an emergency fund to cover any unexpected expenses that can arise. It will help you to avoid taking out a loan or carrying a huge balance on a credit card, which can help you to save your money.
Start investing for retirements
The earlier you start investing for your future, the more you grow. Whenever you get your first full time job, you'll get your retirement benefit account from the employer which you can deposit a percentage of every payback.
It’s Okay To Make Mistakes
Whenever you do investments or savings, you make mistakes. You might make mistakes because you are doing something new. But it's okay to make mistakes. It's important to learn from mistakes and it's never too late or early to start investing or saving.
Educate yourself enough
Before starting investing, read a couple of books to know about finance and stock market. The more you invest in education, higher the return on your savings and investment.