Tips For Your 20s: Saving
I am not trying to be preachy, but starting to save in your 20's is very important. It is exciting that you are on an excellent career path and working your way up the ladder. Having extra money to spend is always a plus, but you always have to have something to the side for a rainy day or even on a brighter note, budgeting for a vacation.
What worked for me was having a checking account solely for bills and expenses, then opening up a savings account with a different bank from my checking account. I know some of you just said "That is just doing the most!", but it really works out well. If your savings and checking are connected through the same bank, you will be more tempted to dig into your savings to splurge because obtaining that money is convenient.
Always save at least 10% of every paycheck. I have been doing this since my teens. If your company has direct deposit, set it up so that 10% goes to your savings account. Act like that money is not apart of your paycheck by counting your savings as a bill. Soon you will be racking up money in no time. Recalculate the amount that goes into your savings as you get pay raises.
If you do use your savings as a rainy day/ vacation fund, make sure that you do not wipe it bone dry to just pay for vacation. Most banks will charge you a $5 fee if you are below a minimum amount. I suggest keeping two times the minimum at your lowest in your savings.
There is not a more rewarding feeling than being smart with your finances.
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