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3 Things All 20-Somethings Can Do With Their Money

Published July 28, 2020

4 minute read

By WalletGenius Staff

Being in your 20’s can be a confusing time, especially when it comes to finances. There are so many opinions about what to do with your money. Luckily, there are some easy money moves that people with a big or small bank account can make. You can find simple money strategies that will improve your finances with an online search.

In your 20s, you should be trying to save your money, but you can also take steps to grow your wealth. And if you’re unsure what moves to make, search online now to discover smart financial ideas.

Here are three money moves all 20-somethings can do with their money.

1. Create A Zero-Based Budget

If you’re looking for a way to keep track of every dollar you earn, consider starting a zero-based budget strategy. This is a fancy term for budgeting and giving every dollar a purpose.

To do this, start writing down your monthly expenses so you can see where your money is being spent. This includes everything from standard utility bills to spur of the moment coffees. After subtracting your income from your expenses, it should equal zero. This will also inform you if you’re spending more than you make.

For example, you might earn $2,000 per month. Everything you spend, save, give or invest should add up to $2,000. This is a way of holding yourself accountable and giving every dollar a purpose, whether it’s put away to savings or spent on necessities.

This strategy can also give you some clarity on utilities and services you shouldn’t pay for anymore. It could be canceling an unused streaming service, opting for a cheaper phone plan, cutting back on your online shopping, and cancelling other unnecessary expenses. It will get easier to manage in a few months, and you’ll be more conscious of where your income is going.

2. Shop Around For Car Insurance

There’s a chance you could be paying too much for your car insurance. That’s why every six months, you should shop around to see other options available to you. A helpful tool to use is the website Gabi, a service that can instantly compare rates and help you save money on auto insurance.

Gabi will be your personal insurance shopper and compare rates from over 40 insurance providers. You’ll be able to score a cheaper premium, without losing any coverage. The website can guide you through buying and canceling your former policy.

Periodically searching for new insurance policies can help you save money. Those who shop through Gabi save an average of $825 per year, and it’s a free service to use.

3. Get Rewards For Shopping

If you’re spending money, then you might as well do what you can to get something back from it. That’s why you should consider two different ways to earn from your shopping purchases. First, consider using shopping services that allow you to earn cashback.

For example, Rakuten is a mobile and web app that will pay you quarterly just for shopping at major retailers like Petco, Best Buy, Verizon and more through the website. Ibotta is another similar service where you can shop through them directly to earn cash back online, or submit eligible receipts from other purchases.

Alternatively, you could also earn cash back directly from your debit purchases. Aspiration is a service that allows you to earn up to 10 percent cashback by using their debit card at retailers. Your money can also earn interest over time, giving you more money. You get unlimited fee-free ATM withdrawals and pay a monthly fee for $3.99 to unlock more perks.

Also consider signing up for a credit card that gives you cash and travel rewards. Not only will this help you build your credit history, but you can earn for spending. There are a number of ways you can earn money off your purchases and make the most of your money being spent. Even getting a bit of cash back towards your next spending session will save you money in the long run.

Search Online For More Financial Advice

It’s important to develop healthy money habits in your 20’s. This will ensure you’re knowledgeable about how to save, earn and invest with your finances. You’ll be able to carry these habits further into adulthood and set yourself up for a healthier future.

You can search for free financial advice and guidance online. Money experts can give you more ideas on how to save and other basic knowledge about investing, banking and credit that you may not have been taught yet.

Woman Typing in Calculator

Natee Meepian / Shutterstock

Contributor

This article was worked on by a number of the WalletGenius staff, including freelancers, full-time writers, and editors.

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