Managing your money in your twenties can be extremely difficult. Whether you’re in student debt, working a low paying job or facing ridiculously high rent, staying out of the red and building your wealth can be a real challenge. However, if you’re willing to make a few life changes and start tackling money issues head on, it’s certainly not impossible. Here are 20 ways I’ve strengthened my finances in my twenties:
1. I stopped spending more than I earn
When I was in my late teens and very early 20s, I was living pay day to pay day. I’d find ways to spend everything I had and would often dip into my life savings if it meant I could buy a new outfit or splurge on a night out. When I turned 24 and realised how little money I had to show for all the work I’d done since the age of 16, I finally started to live below my means. Now, every time I get paid, I transfer a significant portion of my income into my high interest current accounts (TSB Classic Plus, Club Lloyds and Nationwide FlexDirect) and live off whatever’s left.
2. I started freelancing in my spare time
When I’m not doing my day job, I can often be found freelancing from the comfort of my own bed. Most of the freelancing I do involves writing blog posts for businesses or running their social media accounts. This has proven to be a fantastic way of getting my financial shit together and saving for the future.
Moving in with my parents for a while enabled me to build a solid emergency fund and save money for my own home in a short space of time. Of course, this isn’t an option for everyone, but if you do have an opportunity to move in with your parents (even if it’s just for a couple of months) it can make a huge difference to your finances.
4. I now rent a flat that costs far less than I can afford
I moved back out of my parents’ house in May and moved into a rented flat with my boyfriend Jake. We rent a flat that’s considerably cheaper than we can afford, meaning we have more cash to spend on whiskey and cake save for the future. It’s such a relief to know that if one of us was made redundant, we’d still be able to get by.
5. I take my lunch to work with me
Gone are the days where I’d treat myself to a Wagamamas or McDonalds on my lunch break. These days I make something at home and take it with me. If you’re picturing me eating a boring sandwich at my desk while my colleagues devour a Nando’s takeaway, it really isn’t that bad. I tend to have something I cooked the night before. I’ll have chilli one day, curry the next or if I’m feeling healthy, a huge chicken salad.
You might also like: 5 Ways To Save Money On Food (Plus a free £5 voucher off your next supermarket shop)
Every week, Jake and I sit down and plan what we’re going to have for tea each evening. We have a peek in the fridge to see what needs using up and we write a shopping list so we know exactly what else we need. This stops us getting carried away and overspending on more food than we can actually eat.
7. I track my spending
After logging every single thing I bought in April, I realised just how much money I waste on unnecessary things. I no longer track my spending this strictly, but I do keep receipts from my food shopping trips and compare them with my bank balance at the end of each month to see how much money has ‘disappeared’ through frivolous purchases.
I learnt these valuable lessons when I tracked my spending for an entire month.
8. I drink at home… instead of in a bar
If I was really frugal I’d give up drinking completely but I’m not ready to say goodbye to whiskey just yet. Considering a cocktail in a Manchester bar tends to cost between £6 – £10, swapping drinks in the club for drinks at home has made a huge difference. Every few weeks, Jake and I go halves on a bottle of Jim Beam and glug it at home with the lights dimmed.
round for a cocktail night at yours. Stock up on cheap supplies and ask your mates to chip in some cash or bring certain ingredients.
9. I learn from the best
Whether I’m reading personal finance books, following other money saving bloggers on Twitter or listening to podcasts created by people who have achieved financial independence at an early age, I try to learn new things about money every single day.
10. I have fun for free
In the words of Sia, ‘I don’t need no dollar bills to have fun tonight. I love cheap thrills!’
Over the last couple of years I’ve really learnt just how unimportant money is when it comes to having fun. There are so many things you can do for little to no money. From binge watching Stranger Things on Netflix with your boyf to going Pokehunting with your mates, there’s tons of stuff to do for cheap.
Also, if you’re absolutely desperate for a night out, pre-drink at home rather than in the pub. You could even shove a hip flask in your tights or sip a vodka and lemonade out of a Evian bottle in the taxi. Like the old days. Just kidding. Obviously…
11. I save in high interest current accounts
After banking with the same company for the majority of my life, this year I opened a number of high interest current accounts so that I could increase the amount of interest I earn. It’s made a huge difference. I’m hoping that in the next 6 months or so I’ll get to a stage where I’m earning £60-£70 each month in savings interest and cashback. (Bank of England and interest rates permitting). Considering I used to earn about £14 a year in a pathetic Cash ISA, this will be an incredible achievement.
This guide explains how I’m maximising my savings with the help of multiple current accounts.
12. I opened a Help to Buy ISA
I opened a Help to Buy ISA a few months ago and already I’ve saved £1,800 of my own money in it. Since the government offers first time buyers a 25% top up on their Help to Buy ISA savings, technically I have £2,250 saved in this account in total. Take a look at my Help to Buy ISA guide to learn more.
13. I job hopped
I’ve had 3 jobs in the last 12 months. This wasn’t really something I planned and I would never advise job hopping for the sake of it but it’s helped me to progress my career, increase my salary, and finally find a job I really enjoy.
Take a look at this post to learn more: 7 Things I Learned From Having 3 Jobs In 12 Months.
14. I question every purchase
Before parting with my cash, I question the purchase I’m about to make. I ask myself the following questions:
- Do I really need this?
- Can I afford to buy this?
- Am I likely to regret buying this?
When it comes to actually acting on the answers to the above questions, I’m not quite as good at this as I was at the start of my money saving mission. But it still helps. I need to be a little stricter with myself again.
15. I only go shopping when I really have to
I can’t stand shopping. I avoid it like the plague and very rarely venture onto the high street. I think this shopping hatred stems from a mixture of laziness, a dislike for big crowds of people, and the belief I have more important things to do like update this blog.
I’ve not always been like this though. I used to go on a weekly clothes shopping trip and would often pop into Miss Selfridge on my way home from work too. Since I started avoiding the shops, I must have saved hundreds (perhaps even thousands) of pounds.
You know how it is. You start the week with plans to save money but then you take a quick peek at your Instagram feed to see a stunning embroidered dress, the most beautiful Nikes you’ve ever seen, and a cute pair of Adventure Time pjs. It’s hard to save money when you’re surrounded by adverts telling you to buy stuff. This is exactly why I’ve unfollowed a ton of fashion brands (and even fashion bloggers) on Instagram. Nothing against these fashion lovers but I just don’t need this level of temptation in my life.
17. I unsubscribed from retail mailing lists
Very similar point to #16 but I figured this was still worth including. The other day I received an email from Not On The High Street offering me 10% off my next purchase and it just pissed me off, in all honestly. I had to stop myself clicking the link to their beautiful website because I’ll only end up buying stuff I never would have bought otherwise. I’ve written about the perils of voucher codes, coupons and deals before. Give it a read.
18. I invest in myself
When I’m not working, I’m blogging, listening to podcasts, learning new skills using platforms such as Lynda, reading as much as I can, and generally just trying to better myself by investing in number one. Investing in yourself can be a great way to improve your income as each year goes by. By expanding your skill set and developing your knowledge and experience, you’ll find it easier to negotiate a higher salary whenever you feel you deserve it.
19. I’ve avoided buying a car
Although I passed my driving test at the age of 19, I’ve not driven since. Considering I spend at least 2 hours a day commuting, a car would definitely make my life a lot easier but it would also drain my finances significantly. Using public transport works out so much cheaper and at least it gives me chance to read books, write blog posts and browse social media during my commute – three things I wouldn’t be able to do if I was driving.
Here are just a few ways I make my commute as productive as possible.
20. I engaged with my money
More importantly than anything else in this list, I engaged with my money. It can be tempting to stick your head in the sand and try to avoid discussing or even thinking about your money, but money problems are not going to go away on their own. No one is going to fix your finances for you.
Even if you’re in debt at the moment or your savings are non-existent, you have to start somewhere! Just two years ago I was living payday to payday and had zero money in my savings accounts. I now have a strong emergency fund and I’m making good progress towards building a brighter future financially.
You might also like: 5 Ways To Save Money On Food (Plus a free £5 voucher off your next supermarket shop)
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