Are you investing in a way that fits your lifestyle? You might think that saving can cramp your style. It’s easy to de-prioritize when you’re busy going out with your friends, planning which music festivals you can make it to, and where your next big travel destination is going to be.
Think twice before you skip saving. Investing in your 20s can be the gateway to financial security, and there’s no better way to enjoy the lifestyle you want your whole life than finding stability with money.
How to Start Saving in Your 20s
Don’t worry, you don’t have to give up everything fun and nice in your life to start putting money aside. Ignore the articles that tell you to give up coffee, brunch, or any the things that make life enjoyable. Here are a few tips to try when you start saving money for the first time:
- Make a full list of all of your recurring expenses. That means rent, student debt payments, subscriptions like Netflix and Spotify, phone and internet, utilities. Separate them between costs you can’t reduce (like rent and debt) and ones you can.
- Keep track of how often you use subscription apps. Use a calendar. At the end of the month, look at how often you actually used those apps and see if they’re really worth it.
- Check your usage versus your limits. Could you get by with a cheaper phone or internet plan?
- Move on to “splurge” spending. Going out, buying coffee, seeing shows. Give yourself a monthly budget for all of those extras and when you run out, stick to your plan. Remember that you don’t have to eliminate everything.
- If you really just don’t want to cut anything out, consider picking up a side hustle or part-time job to earn extra money. Work hard, play hard.
Investing those Savings for Short and Long-Term
On the one hand, everyone should be saving for their retirement. On the other, if you’re in your 20s, there are probably some other major financial milestones to look forward to first, such as buying a house, starting a business, or even taking a dream vacation.
A great short-term investment is gold; while long-term, mutual funds and stocks have higher growth rates. You want to invest in gold because it’s safe, but unlike cash, doesn’t lose purchasing from inflation.
Save When You Invest
Make sure you get the most for your money. Just like you would when you buy anything, make sure you’re paying low fees and premiums on your investments. You can purchase your gold bullion online to save considerably.
Buying Ethical Investments
You want to invest in companies and products that don’t compromise your moral compass. A growing number of people want to put their savings in ethical investments, whether that means putting their money in green companies or making sure they don’t invest in companies that use sweat shop labor. Can you find ethical gold?
The big thing to look for when you’re investing in bullion is conflict-free gold, meaning it was sourced ethically and not linked to unlawful armed conflict. Most newly-mined bullion today is conflict-free, but you can learn more about the Conflict Free Gold Standard and mints that follow conflict-free sourcing initiatives, such as the Royal Canadian Mint or Perth Mint in Australia. Mints are increasingly putting effort into finding credible third-party smelters, so that you know where your coins have come from. It’s a powerful incentive to stick to bullion coins and other mint-made investment products.
Investing in your 20s should be about making choices that fit your lifestyle and your values. You don’t have to give everything up today to achieve financial security tomorrow.