Recently, I read Elite Daily’s article If You Have Savings In Your 20s, You’re Doing Something Wrong.
There are so many things wrong with this article. The author in this article basically says that you should spend all of your money in your 20s, even if you have money to start saving in your 20s. Saving money in your 20s to her means that you are boring, lazy, and just planning for your death.
To state the obvious: I disagree with her article.
I believe that saving money in your 20s means you’re doing something RIGHT.
There are tons of horrible advice in her article such as:
What memorable experience does money in the bank give you? How well-rounded can people become sitting at home, watching their limited funds gain interest?
As well as…
When you’re 40, you’re not going to look back on your 20s and be grateful for the few thousand you saved. You’re going to be full of regret.
I read this article over and over again to see where the author would say “Gotcha, April Fools!” However, that never happens. I’m sure this article is mainly just click bait to get people to head on over to their website. I think the advice is horrible and I’m hoping no one is following the advice of this author. However, I’m sure at least a few people are taking her seriously…
There are so many reasons to start saving money as early as you can. I don’t think I’ve ever heard someone say “I regret all that money I saved when I was younger.”
In fact, it’s usually the exact opposite.
Considering the fact that 36% of people in the United States have absolutely NO MONEY saved for retirement (according to a survey done by Bankrate), I think there are many who probably wish they had savings.
There is absolutely no reason to spend all of your money just because you want to. It doesn’t make any sense to me to blindly spend everything just because it’s there!
Below are several reasons for why you should start saving money in your 20s.
You can learn good habits now.
One of the top reasons for why many don't save and invest is because they claim that they don’t know how. Yes, the beginning of saving money and investing may feel like a whole new thing, but it is possible and it doesn’t have to be hard.
The sooner you start saving, the more it becomes more of a habit and the easier it will become. By saving money in your 20s, you will learn good financial habits that will help you well into the future.
I recommend using Motif Investing if you are looking to invest your money. Motif Investing allows individuals to invest affordably. This approachable investing platform makes it easy to buy a portfolio of up to 30 stocks, bonds or ETFs for just $9.95 total commission. Plus, you will receive up to $150 when you use Motif Investing if you sign up under my link.
- 5 Mistakes That Can Hurt Your Chances For Retirement
- The 6 Steps To Take To Invest Your First Dollar – Yes, It’s Really This Easy!
- The Smart Woman’s Guide To Investing Success
- How To Save Money – My Best Money Saving Tips
Leading a good life doesn’t have to make you broke.
As you all know, I really dislike the myth that people who save money are boring. That’s just not true at all.
There is absolutely no reason to go broke and spend all of your money in order to have a good time. I believe that you CAN balance living a good life along with saving money in your 20s.
There are plenty of ways to live an awesome life while saving money. Yes, you can still see your friends, have fun with your loved ones, go on vacations, and more, all while staying on a realistic budget.
Related article: How To Have Frugal Fun
Compound interest is a powerful thing.
Saving in your 20s is a wonderful thing, especially due to the fact that time is on your side and due to the powerful impact of compound interest.
Compound interest is one BIG reason for why you should start saving money as early as you can (especially for why you should start saving in your 20s).
Compound interest is when your interest is earning interest. This can then turn the amount of money you have saved into a much larger amount years later.
A great article that explains the power of compound interest is Learnvest's article Compound Interest 101: How It Works.
Side note: I recommend you check out Personal Capital if you are interested in gaining control of your financial situation. Personal Capital is similar to Mint.com, but much better. Personal Capital is free and it allows you to aggregate your financial accounts so that you can easily see your whole financial situation, including investments.
Just because you don’t have “wants” doesn’t mean you won’t have “needs.”
One thing the author said in her article was that she doesn’t save money because she has no “wants” in life.
This is a horrible thing to say as you may have NEEDS that pop up that require savings. You never know if you may have a medical emergency, if you may lose your job, if your car may break, and so on. Having savings can help get you through hard times.
Plus, you never know how things may be in the future. Just because you don’t want to start saving money in your 20s now doesn’t mean that you won’t want to save later. You will most likely regret your past if you make the huge mistake of choosing not to save money.
Why not start saving money in your 20s if you can?
Saving money in your 20s is better than not saving anything.
What is the reasoning behind spending money just because you can? I see no point in actively trying to make sure you don’t have money leftover.
Like I said earlier, there is no reason to spend all of your money just because you are able to. It doesn’t make any sense to me to blindly spend everything just because it’s there. In my opinion, saving money in your 20s is always a great idea.
Even if you are only able to save a small amount, that is much better than not saving anything. Remember, time and compound interest are both on your side and this can turn the small amount of money you have saved into a much larger amount.
To summarize this whole post: You should start saving in your 20s if you have the ability to.
Are you saving money? Why or why not? What do you think of the Elite Daily article?
Subscribe to get the free Master Your Money course!
Join the free email course and finally learn how to manage your money better, pay off debt, save more money, and reach financial freedom. Get our newsletter and get access to the freebie: