How to Budget and Set up a Saving Plan when you’re in your 20’s

Being in your twenties means that it’s officially time to wave goodbye to your childhood years and start growing up. Sad as it may be, the days of and blowing your entire payslips on whatever you wanted are over. Now that you’re in your 20’s it’s time to establish a career and start saving for a rainy day. If you’re looking to learn how to budget & set up a saving plan that you can actually stick to, here’s a handy guide to get you on your way.

Get Organised

So first of all you need to get organised. Before you set up a budget or a saving plan you will have to dedicate a spare hour to make sure it’s as accurate as possible. Before you start it’s worth gathering your important paperwork – you’ll need everything from your payslips, credit card bills and bank statements to and any other bills that you’re currently paying.

Your Income

Once you have all the paperwork you need, you can start to work our income. For a more accurate budget it’s best to work your income out after tax so you know exactly how much money you’re left with – this can conveniently be found written out on your payslip. If you don’t have a fixed salary, make sure you focus on weekly and yearly earnings as well as monthly earnings as your commission and freelance work could affect this.

Budget Planning

After you’ve worked out how much money you’ve got coming in, you’ll have to make a list of all your outgoings and bills you have to pay. After you’ve made a list of all your bills, make another list of what you’re spending your money on and how much is being spent. This way you’ll know how much money you have to stretch over a week, or a month.

For the best accuracy on your budget it’s a good idea to build yourself a spreadsheet. Create a set of weekly, monthly and yearly spreadsheets to document your budget. Spreadsheets are easy to use and are easily adaptable if any emergencies arise. If you’re ever caught up in an unexpected emergency, payday loan lending could help you bridge the gap until you’re able to manage your payments.

Motivated Mantra

To stick to your budget and start having a savings plan you’ll need to curb unnecessary spending. Small changes like taking lunch to work with you and not buying that takeaway coffee could make a big difference to your yearly budget.

If you’re motivated about building up your savings you’ll be more careful on what you spend your money on. If you can adopt a mantra of ‘if you’re happier with less you won’t need more’ while you’re in your twenties you’ll begin to focus more on experiences and less on material items. If you live by this mantra in your 20’s you’ll have a better relationship with money and far more substantial saving to spend in your 30’s.