Saving money in your twenties is important to help you set up your future, but it’s easier said than done.

Balancing a social life with inflation-ridden bills and savings goals is challenging. It can be hard to delay gratification with the temptation of enjoying the present, but your future self will certainly appreciate the money you manage to put away.

Here are 7 tips to help you save more effectively.

Harness the power of budgeting

Anyone looking to save money should be investing time in budgeting. This process is crucial to give you full visibility over your finances and help you identify areas where spending can be cut.

List and group all your monthly outgoings, then consider where money is being wasted. You can optimise your budgets as you go, giving you a clear idea of how much you can save each month. 

Separate your savings pot

Avoid temptation by separating your money into current and savings accounts. This is a good way to give you clear boundaries between your pots and to stop you from dipping in when you can’t resist.

Some people open a savings account with another provider to make it even harder for them to spend money that they’re putting to one side.

Stop buying new clothes

Your twenties are all about looking and feeling good, but you might want to cut back on clothes shopping if you’re saving towards a goal.

This doesn’t mean you can’t buy items. Look at second-hand options on Vinted and other outlets to save money in comparison to retail prices.

Invest in a lunch box and travel mug

Lunches and drinks at work or university can add up to a significant total. Investing in a quality lunch box and travel mug can give you the means to take tasty food with you for a fraction of the price. 

Get creative with lunch recipes and find some favourites that you can make easily before or throughout the week. Consider vegetarian options because these are a good way to avoid paying premium prices for meat.

Negotiate your bills

A large proportion of your monthly outgoings are likely to be bills for necessities such as phone contracts, car insurance, rent and utilities. Negotiating any price reductions on these isn’t easily done, but you can save significant amounts if you’re successful.

Swapping to different providers or contracts may be a smartoption too if you’re keen to boost your saving efforts, although it may not be cheap if you’re currently in a contract.Cancel any subscriptions that go unused to avoid wasted payments.

Find ways to have fun at home

Going out and about can be expensive, particularly when it comes to socialising. Find ways to entertain friends at home so you can save money and still enjoy the company.

You may be surprised at just how much fun you can have at home by yourself or with others.

Set up an emergency fund

Alongside your savings, accumulate an emergency fund that provides a financial buffer between yourself and the money you’re putting away. 

Unexpected bills can eat away at your savings, but an emergency fund ensures that you don’t have to withdraw every time you need extra money at short notice.

Disclaimer: This post is a collaboration