 8 Things You Should Be Saving For In Your 20s Maybe you never really gave it a thought, but saving is the key to becoming successful and enjoying a wealthy life even when you are only in your 30s or 40s. You're wondering how, right? Gene Chatsky, an American journalist, a personal finance columnist and financial editor said By definition, saving for anything requires us not to get things now so that we can get bigger ones later. It's easy to assume that your 20s is a time to enjoy the little bit of what you're just learning and trying to earn for yourself. It still feels so little and you're already looking forward to your 30s, when you must have grown in your career and can now earn for yourself the big money you've always wanted to. Which means that now more than ever you can save money for your future self and family. Should we tell you the truth? You'll never be able to save some of that big money unless you've made saving a habit before them. Also, with more money comes more responsibilities. So you see, according to Elizabeth Warren, an American politician, balancing your money is the key to having enough. So how best can you balance your money? I'm pretty sure you just answered that question. Yes, you are right. You should be saving. So to the real question, what should you be saving for now that you're in your 20s? In this video, I'll share with you eight things you should be saving for in your 20s. If you're new here, consider subscribing, so you won't miss other interesting videos like this. Number one, self-investment. When you get into the market or workforce, you'll soon realize that the college degree or other education experience we marched through isn't always everything we need to get the day job done, because it's a highly competitive job market. However, getting some additional training and skills will make a big difference, exposing you to some of the big opportunities you desire, and most importantly, helping you make the most of those opportunities for career success. Yes, you might want to take advantage of your employees' benefits in getting some of those courses and professional training. However, you can't always wait or leave it to chance. It is expected that you should have groomed yourself to a certain level before jumping on your employers. Two, build an emergency fund. MK Sony said, all days are not the same. Save for a rainy day. When you don't work, savings will work for you. An emergency fund is an insurance policy for your finances, and makes it easier to stick to your budget and not go into debt. For instance, if you suddenly lose your job or have an unexpected medical expense that requires urgent attention, how will you take care of the situation if you barely have enough money for your daily affairs? Do you see why you need an emergency fund? You may start with a small emergency fund, something that can cover up your one month expenses. Over time, increase it to cover up at least three to six months expenses. Number three, start saving up for retirement. If you plan to stop working early in life, so that you can spend the rest of your time to enjoy your relationships with family and friends, then there is no better time to start saving for retirement than now. Do not fall into the trap of thinking that you still have so many years ahead of you to begin doing that. The key to having enough money for retirement is to start saving early and then continue saving regularly until you retire. Start saving as soon as you get your first job. It might be very little to begin with, but compound interest will be your advantage eventually. The more money you save when you are young, the more that money will grow, and the more you will have to enjoy retirement. Number four, save for a home. One of man's basic needs is having a good place to call home. Although not everyone aims at owning one, if your goal is to own one, then now is a good time to start saving for it. You might not want to go ahead to purchase the home in your 20s, because there are a lot of factors to consider. For instance, if you don't want to stay in the city where you are currently working, then the last thing you need is a place of your own right there. However, you can start saving for your home right away. Usually, a down payment of 20% of the purchase price is required for your home, but this can vary. The larger the down payment, the lower the mortgage payments can be, and the nicer the house you can afford. Also, putting down a large down payment will help you avoid private mortgage insurance. Number five, get health insurance. It's a little frightening, knowing the number of people who go about without health insurance, because even if you're one of those who rarely get sick, what happens in cases of emergency? Yes, it might seem like you are saving an appreciable amount of money by not insuring your health, but the moment you get injured or hospitalised, you'll wish you had saved that money instead of holding on to it, because you'll end up spending way more than what you've supposedly been saving. Get insured for your health now. Even if you can't afford a comprehensive plan, you can at least buy yourself a policy that protects against catastrophic costs. Number six, start investing. If one of your life's goals is to build your wealth, then investing is an option you must consider because you can't do this by merely saving money. Investment helps you to grow your money, and the best time to start investing is before you are 30. Again, compound interest will help your money more quickly, so the sooner you start, the better off you'll be. You can either get a financial advisor or do it yourself, depending on how knowledgeable you are on the subject, from the risks involved to the benefits attached. Number seven, start saving for bigger future purchases. You're going to have to purchase some big things, like owning your car, catering to your kids' education, taking care of your family and a lot more. Realising this and working towards it from this time is a good plan to help you achieve these goals, even though they are long term. You can calculate how much you need to save for them and start setting aside money daily, weekly or monthly. Number eight, travels. You might not realise it, but travel can be a major deal in your 20s and even afterwards. At first, you might be unstable, trying to figure out what part of town you'd like to settle in, or where you'd like to get your next job, relocating and a bunch of other stuff, including attending your friends' weddings. You see, it's a lot of travel stuff. So, it is important to set some funds aside to cover these travel expenses from time to time, so that you don't run into debt or end up spending the money you ought to be saving for some other projects. Do you know what W. Clements Stone, a businessman, philanthropist and self-help author said about saving? If you cannot save money, the seeds of greatness are not in you. Be great. Save money. Thank you very much for watching our videos. If you like this video, watch more videos on our channel and subscribe. We love you.