Saving money doesn’t mean saying goodbye to fun. You don’t have to ditch coffee, cancel every streaming service, or refuse to eat out ever again. Instead, saving is about building smart habits that help you enjoy life now and set yourself up for a financially secure future.
Your 20s and 30s are prime years to develop smart money habits—whether you’re just starting out or leveling up. Here’s how to do it without feeling deprived.
Your 20s are all about getting into the right financial mindset. The earlier you start, the easier it will be to grow your savings over time.
1. Build an Emergency Fund (Seriously, Do This First)
Life happens—unexpected car repairs, medical bills, or a sudden job loss can set you back if you’re not prepared. Aim to save at least three to six months’ worth of expenses in a savings account. If that feels overwhelming, start small. Even $500 can make a difference. Learn more on how to get started.
2. Take Advantage of Free Money
If your job offers a 401(k) match, contribute at least enough to get the full match—it’s free money! No 401(k)? Open a Roth IRA and start investing in index funds. The earlier you start, the more time your money has to grow.
3. Avoid Lifestyle Inflation
Got a raise? Nice! But before you upgrade your apartment or buy a new car, consider keeping your expenses low so you can put more money toward saving and investing.
4. Automate Your Savings
Set up an automatic transfer from your checking account to savings every month. This makes saving effortless and prevents you from spending first and saving what’s left.
5. Pay Off High-Interest Debt
Credit card debt is a savings killer. Focus on paying off high-interest balances first, while making minimum payments on other debts. This will free up more money for saving and investing.
6. Start Investing (Even If It’s Just a Little)
Investing might seem intimidating, but you don’t need to be an expert to get started. Consider low-cost index funds or speaking to a financial advisor. Even $50 a month can turn into thousands over time.
Now that you’ve built a solid foundation, it’s time to grow your wealth and prepare for bigger financial goals.
1. Increase Your Emergency Fund
As your responsibilities grow—whether its homeownership, kids, or a dog with expensive vet bills—you’ll want to expand your emergency savings.
2. Maximize Retirement Contributions
By now, you should aim to increase your retirement savings. Try to max out your 401(k) and IRA if possible. The goal is to save at least 15% of your income for retirement.
3. Plan for Major Life Expenses
Thinking about buying a home, starting a family, or launching a business? Start setting aside money for these big-ticket items now so you don’t have to rely solely on debt later.
4. Get Smarter About Investing
If you’ve been investing casually, now’s the time to get more intentional. Look into speaking with a financial advisor.
5. Protect Your Wealth with Insurance
As your assets grow, make sure you’re covered. This includes health, life, disability, and even umbrella insurance to protect your finances from unexpected events.
6. Keep Lifestyle Creep in Check
It’s tempting to splurge when you’re earning more, but prioritize saving and investing before upgrading your lifestyle. Your future self will thank you.
Saving money in your 20s and 30s isn’t about deprivation—it’s about balance. The key is to start early, be consistent, and increase your savings as your income grows. With the right habits, you can build wealth while still enjoying life today.
So, where will you start?
Your 20s and 30s are prime years to develop smart money habits—whether you’re just starting out or leveling up. Here’s how to do it without feeling deprived.
Saving in Your 20s: Build the Foundation
Your 20s are all about getting into the right financial mindset. The earlier you start, the easier it will be to grow your savings over time.1. Build an Emergency Fund (Seriously, Do This First)
Life happens—unexpected car repairs, medical bills, or a sudden job loss can set you back if you’re not prepared. Aim to save at least three to six months’ worth of expenses in a savings account. If that feels overwhelming, start small. Even $500 can make a difference. Learn more on how to get started.
2. Take Advantage of Free Money
If your job offers a 401(k) match, contribute at least enough to get the full match—it’s free money! No 401(k)? Open a Roth IRA and start investing in index funds. The earlier you start, the more time your money has to grow.
3. Avoid Lifestyle Inflation
Got a raise? Nice! But before you upgrade your apartment or buy a new car, consider keeping your expenses low so you can put more money toward saving and investing.
4. Automate Your Savings
Set up an automatic transfer from your checking account to savings every month. This makes saving effortless and prevents you from spending first and saving what’s left.
5. Pay Off High-Interest Debt
Credit card debt is a savings killer. Focus on paying off high-interest balances first, while making minimum payments on other debts. This will free up more money for saving and investing.
6. Start Investing (Even If It’s Just a Little)
Investing might seem intimidating, but you don’t need to be an expert to get started. Consider low-cost index funds or speaking to a financial advisor. Even $50 a month can turn into thousands over time.
Saving in Your 30s: Level Up
Now that you’ve built a solid foundation, it’s time to grow your wealth and prepare for bigger financial goals.1. Increase Your Emergency Fund
As your responsibilities grow—whether its homeownership, kids, or a dog with expensive vet bills—you’ll want to expand your emergency savings.
2. Maximize Retirement Contributions
By now, you should aim to increase your retirement savings. Try to max out your 401(k) and IRA if possible. The goal is to save at least 15% of your income for retirement.
3. Plan for Major Life Expenses
Thinking about buying a home, starting a family, or launching a business? Start setting aside money for these big-ticket items now so you don’t have to rely solely on debt later.
4. Get Smarter About Investing
If you’ve been investing casually, now’s the time to get more intentional. Look into speaking with a financial advisor.
5. Protect Your Wealth with Insurance
As your assets grow, make sure you’re covered. This includes health, life, disability, and even umbrella insurance to protect your finances from unexpected events.
6. Keep Lifestyle Creep in Check
It’s tempting to splurge when you’re earning more, but prioritize saving and investing before upgrading your lifestyle. Your future self will thank you.
Final Thoughts: Small Steps Lead to Big Wins
Saving money in your 20s and 30s isn’t about deprivation—it’s about balance. The key is to start early, be consistent, and increase your savings as your income grows. With the right habits, you can build wealth while still enjoying life today.So, where will you start?
Disclosures
All accounts subject to approval. This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult with a tax or legal professional regarding their individual situation.