Life Saver: How to start saving young

Like any child, you probably had and coveted your piggy bank or some sort of ceramic or plastic apparatus (in some animal other than a pig, perhaps) because every time your grandmother gave you a quarter or your dad let you keep the change from a purchase, chance are you couldn’t wait to drop that coin in the slot and watch your modest amount of money grow.

Not sure what happened between being a kid and saving at almost every turn versus being a young adult and not really valuing money all that much at the moment, but the disconnect in the 20 something crowd is rather stunning in relationship to saving money.

For the most part, the average 25 year old isn’t really thinking about saving per say but rather are in a state of financial influx as a result of where they are career wise along with other contributing factors.

The average 20 something year old is most likely fresh out of college and is pursuing their career of choice but may have not found much in the way of a job that pays all that well. Perhaps they’re living at home or have ventured out into a modest apartment, and money really isn’t over abundant but you make enough to pay your expenses and have a little bit leftover as a result.

The most apparent and common reaction to that scenario is to spend the money freely, whether it’s dinner or a night out or some sort of entertainment factor that allows you to spend what money you have remaining and not really give saving a whole lot of thought. If you’re living at home with your parents, and you’re not saving money then you’re missing out on that final opportunity to be gainfully employed and not have to shell out a good portion of your paycheck on rent.

If you have rent as an expense, and have money leftover, you should really consider budgeting properly and putting what little profit you have aside given this might be the leanest you will ever be living expense wise.
The biggest misstep by most young adult are those who have employers who have a retirement plan, yet they scoff at the idea of retiring because the topic seems like it is light years away at 25 or 26 years of age. Don’t make the mistake of giving away free money and instead think about even a modest contribution in the 2 or 3 percent mark, which is only going to grow (even if it’s in small chunks) as you continue to invest and work.

Being young is one thing but don’t follow in the young and dumb blue print that is only going to make your 30s and beyond that much more of a struggle now that you let your 20s fly by with little to show for it financially.