You’re 18. You may just have graduated from high school, begun college or taken your first job. You might be treading water in your bank account, too, and the notion of “saving money” is either a joke or, well, just not very sexy. How to Start Saving Money ?
But here’s the thing: Saving even a little now leads to way more freedom in the future. And we mean real freedom — the kind where you can move out when you want, where you can travel, where you don’t have a heart attack when you get a flat tire.
No fluff, no lectures — this is your zero-bs guide to saving money, even if you’re totally starting from $0.
Why Begin Saving in Your 20s?
You can say, “I’ll save when I start earning more.” But here’s why you should get started now, not later:
🧠 1. You’re Not Too Young to Start Building Wealth
- Saving $25 a month now could even add up to thousands later with the help of compound interest — when your money makes you money.
⏳ 2. Time Is Literally Money
- The sooner you start the more time your money has to grow. Time is your financial superpower.
💪 3. Saving = Options
- Whether it’s an escape for the weekend, going off to live on your own, starting a business — saving gives you options.
How to Budget Without Becoming a Miser
Unclear where your money goes? That’s normal. But if your goal is dedicated saving, you need a plan.
Use the 50/30/20 Rule:
- 50% → Needs (housing, food, phone)
- 30% → WANTS (DoorDash, concerts, Netflix)
- 20% → Savings (including any debts you want to pay off)
Budgeting Tools:
- 📱 Devices: Mint, YNAB, Rocket Money
- 📝 Low-tech: Google Sheets, or a notepad even
The goal isn’t perfection. It’s awareness.
Get Small — Really Small
You don’t even have to save up $500 to get started. Even $5 a week matters.
Try This:
- The way you do it: Schedule automatic, weekly transfers of $10–$20 to your savings account.
- Try an app that rounds up to build your loose change elsewhere (such as Acorns)
- Stash side hustle tips or gigs funds.
Consistency > Quantity: The habit > how many right now.
Open a High-Yield Savings Account
If you have a regular savings account that earns 0.01% interest … you’re missing out huge.
Look for:
- No monthly fees
- 4%+ interest (it is possible now)
- Easy online access
Great Options:
- Ally Bank
- Chime
- Capital One 360
Pro tip: Put this account somewhere else other than your checking so you are less tempted to touch it.
Emergency Fund = Adulting 101
This is your “oh crap” money. Because when your car battery has died, your phone is irreparably shattered or you need that last-minute doctor appointment: “Do you take Venmo?”
How Much Should You Save?
- Start with $250–$500
- Work up to 3 months of basic expenses (eventually)
Leave this fund in your high-yield savings account, not in your Venmo.
Stop the Money Leaks
We all have ‘em. Subscriptions we forgot about. Snacks we didn’t need. Amazon impulse buys at 2 a.m.
Audit Your Spending:
- Review the previous 30 days of your bank statement
- Circle anything that made you go “ugh, why did I buy this?”
- Nix, pause or cut that stuff.
- Trim $5 a Day = More Than $1,800 a Year. That’s real cash.
Tell Your Wallet How to Handle Social Spending
It can be easy to spend too much when your friends are always eating out, or going out.
How to Stay Social (Without Going Broke):
- Recommend free/cheap activities (picnic, hike, game night)
- If you’re invited somewhere, say yes, to every other invite — not all
- Establish a “fun” budget and stick to it
If you have good friends, they won’t mind if you miss one opportunity to hang out in order to meet your savings needs.
Investing is Not Just for Rich People
You don’t need a degree in finance or a fat paycheck to invest. Just a plan and a few bucks.
Beginner-Friendly Investing Ideas:
- Index funds/ETFs (from apps such as Fidelity, or Vanguard, or Robinhood)
- Robo-advisors like Betterment or Wealthfront
- Roth IRA (perfect for young folks)
Start with $20–$50/month. Focus on the long term, not the daily stock market drama.
Make It a Game
It doesn’t have to feel punishing to save money. Make it fun!
Fun Ways to Save:
- 💸 Go on a 30-day no-spend challenge
- 🧩 Put game psychology to work on your money Use apps like Capital to “save to win”
- Reward yourself when you reach savings goals
By turning saving into a game, it’s easier to stay engaged.
Pump Up Your Earnings With a Side Hustle
You can only budget so much — more income = faster saving.
Ideas That Actually Work:
- Freelance on Fiverr or Upwork
- Sell items on eBay, Facebook Marketplace
- Launch a TikTok, Insta page or blog around a hobby
- Dog-walk, babysit, tutor, DoorDash deliver
Save half of what you earn. Then use the remainder on treats for yourself.
Build Credit — The Smart Way
Good credit = better interest rates down the line for purchases like cars, apartments or – yes – your phone.
Credit Card Tips for Beginners:
- Depending on your usage, that balance can quickly turn into high interest debt.
- Never carry a balance
- Keep your usage under 30%
- Don’t open 5 cards at once
Establishing credit = long term savings.
Ignore Everyone Else
It’s simple to compare your savings, your lifestyle or your phone to your friends. Don’t.
Just Remember:
- Instagram is a high light reel, not real life
- Everyone’s financial situation is different
- Saying no is good for strategy to achieve long term success.
Discover How to Be Richer Than Your Classmates Grad school is over, and now you get to apply what you learned in real life.
Unfortunately, most schools avoid real-life money skills. But you can teach yourself.
Learn With:
- 📚 The Psychology of Money, by Morgan Housel
- 📺 Graham Stephan or Erin Talks Money on YouTube
- 🎧 Planet Money or Financial Feminist podcast
The more you know, the more basic control you have.
Set GOALS that actually is Important to YOU
Saving without a purpose? Snoozefest. Lastly, saving up for stuff you want? That’s fire.
Make It Personal:
- Short-term goals: New phone, concert tickets, spring break trip.
- Mid-term goals: Moving out, buying a car, starting a biz.
- Long term goals: Freedom from monetary matters, visiting the world, retiring early.
Put your goals in writing, give them deadlines, and then monitor your progress. Make it real.
Final words: A Little, A Bit of Now
You don’t need to be perfect. You don’t need a six-figure job. You simply need to begin — even if that means $5 into a jar.
Saving money in your 20s — that’s the sweetest gift you can give the 30-year-old you.
