Money Tips in Your 20s and 30s

Here are some tips geared especially toward people in their 20s and early 30s for saving and managing money intelligently.

By Telus Health Oct 31, 2023

Track your spending

Get a spreadsheet and write down what you are spending each day in each category; it could be bills, food, entertainment, self-care, etc. At the end of the month, add up what you are actually spending. It might be a surprise to see where your money is going, The first step to change is awareness, and once you have clarity, then you will be able to make a spending plan for the coming month. Debtors Anonymous have many resources for this practice.

Pay yourself first

When you get paid, make sure you pay yourself first before anyone, even loans or debts. Set aside a manageable amount; even if it is 1 or 2 percent of what you earn each month, make sure you are putting aside for your savings. The reason is, prioritizing other spending and debt payments first may leave you with little to put into your savings. If you allot a regular amount toward your savings first, you will always know that you are making small gains each month allowing your nest egg to grow.

Pay down student loans faster

When you can, make an extra payment. (Make sure the lender knows it's an extra payment, not an early payment of the next instalment.) If you can afford higher payments, see if you can change your repayment terms to speed things up. If you have multiple loans, consider consolidating them. Check online or your university website for more information.

Save on technology

Need a new phone, tablet, computer, or game console? Prices usually drop when a new generation is about to be released. Use a price tracker like CamelCamelCamel to keep an eye on the items you're interested in. Upgrade to the latest gadget only when you need it—not just because a newer version has just come out. As for warranties, unless you have a history of breaking things, don't buy extended coverage for tech products.

Rein in those luxury expenses like takeout and eating out

It’s tempting to order a take-out or go out for dinner after a long day at work;however, those coffee breaks, lunches, and dinners will soon add up! For a month, track how much money spent on hot drinks—you may be surprised to see. Awareness is the first step toward changing your habits. Practise making meals regularly, taking food out with you, and invest in a hot flask for hot drinks on the go.

Travel frugally—and in smart ways

Traveling for vacation? For your career? Save hundreds of dollars with smart planning. While flying might be suspended in some parts of the world due to the global pandemic, you can still think about smart booking. Book flights in advance, but not too far in advance; for domestic flights, three to three-and-a-half weeks is optimal, and two to four months for international flights. Of course, you need to check what is happening internationally with regards to restrictions as a result of COVID-19. Make sure you read the cancellation policies thoroughly.

Stay cheap

Skip the hotel and stay at a local Airbnb. If you can, travel off-season for cheaper stays.

Don't create online accounts at retailer websites

Buy online, but don't sign up for a new account; make your purchase as a guest. If you must enter your credit card info and address every time you buy something online, you'll be less likely to make impulse buys.

Try out savings and investment apps

Apps like Acorns, Digit, Qapital, Wealthfront, and Betterment make it easy to save and invest automatically with low or no fees.

Don't pay for phone calls

Use free app-to-app services, like WhatsApp or WeChat (these require both caller and recipient to have the app). Or use an app that can make calls to any recipient, like Google Voice or FreedomPop.

Be a savvy “couponer”

Websites and apps like Groupon, RetailMeNot, and SnipSnap can save you a bundle on everything from spa treatments and music festivals to restaurant meals and groceries.

Try a side hustle

Have some spare time? A spare room? There are countless ways to make extra cash outside of a regular job with a side gig. Child or elder care, driving for Lyft or Uber, tutoring, proofreading, sports coaching, running an Airbnb, dog walking, and seasonal retail jobs are just a few of the possibilities.

Ask for Help

If you find you are struggling to manage your money or have a lot of debt, it might be time to ask for help. You could reach out to your assistance program and seek support from a caring counsellor, or search for local financial advisors. If you cannot afford it, Debtors Anonymous is a free group where you can get advice and support for money issues in your life.