Juggling between career and money management? Here are tips and tricks that will save you a lot of money in your 20s

When you are in your 20s or maybe have just started earning, saving money seems like a herculean task. Juggling between career and money management, youngsters often find it impossible to save money for their needs and wants. 

Sometimes, they even start to cut down on their everyday requirements. But is there a way out? Is there a way to start saving out of the little money you earn or receive from your parents?

Let us tell you some tips and tricks to start saving money in your 20s. 

1. Make a budget: Of course you have heard it before. It's such a hackneyed concept but equally crucial. Creating a budget will help you understand where all your money is going into. It will help you allocate funds to your bills, rent and entertainment, obviously. 

Remember, making a budget does not mean you have to give up on fun. 

2. Start saving one-third of your income: If you are not sure how to actually start saving, experts recommend saving at least one third of your income per month. By setting aside a part of your income, you can allocate it later on additional expenses such as repair cost or maybe an emergency or other surprise expenses. 

3. Investing: While it may sound like a challenging task, you can do it easily by keeping aside a small part of your income. Let's say, if you earn Rs 20,000 per month, you can consider investing Rs 1,000 every month. By doing this, you are not putting much financial burden on yourself and even your invested money is getting doubled! How hard is that?

4. Track your spending: Track your spending every month. By doing this, you can get a clear idea of where your money is being spent each month. It will also help you understand whether you need to cut down on a particular expense. You can be a saving expert. 

5. Avoid debt: According to experts, you should avoid debt as much as possible. Sometimes, the interest rates that you will be paying can put a huge burden on you.

6. Follow the 50-30-20 rule: The 50-30-20 rule basically refers to allocating 50% of your income to your needs, 30% to your wants and 20% to your savings. Considered an effective way of saving money, even financial experts can vouch for the 50-30-20 rule. 

7. Managing a credit card: Managing a credit card requires financial literacy. If you own one, you might want to pay your bills on time or you have to pay additional charges. It is, however, recommended to use cash instead of credit. 

What is financial literacy?

Speaking about finances, financial literacy is a significant part of the discussion. Financial literacy refers to understanding how to make profitable decisions with the money you have. It is also the ability to understand and utilise various financial skills, such as saving, investing, in the most effective and efficient manner.