Let’s Be Real: Financial Gurus Have It Wrong About Saving Money In Your Twenties

Photo by Sharon McCutcheon on Unsplash

We’ve all heard it before. When you’re in your twenties, even in your early thirties, you’re told millions of times about what you should be doing with your money.

Here are a few examples:

“Stop spending money on overpriced coffee! Make your own crappy coffee at home and you’ll save probably $20 each month!”

“You’re not truly making money until you’re working five jobs! That’s right, there are 168 hours in a week and you should be working 150 of those hours!”

“Start saving for retirement immediately! Even though you won’t retire for another 50 years, you need that NOW!”

Okay, I may be exaggerating a little.

And I’m probably not the best person who should be giving you financial advice. I’m $100,000 in debt due to student loans, credit cards and the purchase of a Chevy SUV I probably didn’t need to get but traded in my reliable Ford Focus for anyways. My savings are practically nonexistent, I made a little more than $20,000 last year, and I live with my parents. Also, I’m only 23 (and about to be 24 next month).

But here’s the thing: I know what people in their twenties are doing with their money. I’m one of you, currently. When you talk about how you’re debating spending your cash on either Chipotle or your cell phone bill, I totally get it. Sometimes I go to Target and spend my money on stupid shit when I should be putting that towards my student loans. It happens more than you think.

The people who discuss money (the so-called financial gurus) used to be in their twenties. So they kind of get it. But they don’t know what it’s like to be this age now. I’m sure they probably only needed one or two jobs in order to afford a place to live, and could pay off their debt in less time. If they were able to do that and can pass on some of their knowledge to us, that’s awesome.

But it’s not totally equal to what we are experiencing now.

So here are my thoughts: You don’t need to follow all of the advice you’re given from financial experts, especially if it’s not relatable to how you’re living your life now. Some of their advice is great. Yes, you probably should think about putting a little bit towards retirement. You can easily open an IRA account or sign up for Stash, an investing app where you can also open a retirement fund. And while it may be difficult to cut down on your daily Starbucks or Dunkins fix, you can always try and limit yourself to two trips a week on your way to work or even make it a weekend treat. Also, side hustles are nice to have. I currently work three jobs, but with the time that I do work, it equals maybe 40–45 hours a week and I still make a little extra cash (this is because my day job is only 29.5 hours a week).

There are always other ways you can work on saving money when you’re young. You’ve got so much of your life ahead of you! It’s important to realize that not everyone can afford to do things the “right way,” or the way you’ve been taught to follow. We are always told to go to school, graduate college, get a job, move out, have a family, and pay off your debt. It’s not that easy. It took me more than a year to find a real job that uses my degree, and it’s still only part-time! I still live at home! I don’t have the money to pay my student loans, but I can’t refinance because I don’t make enough money!

However you manage your life financially, it doesn’t matter. We’re all different. Following a financial expert’s advice to a T may not work for you. And it’s fine. It’s always helpful to get a little push from someone who has had more experience with money, but you have to tailor your budget to your personal needs, not someone else’s.

Since this does contain financial advice, I suppose I can give you my top three ‘helpful hints’ on how to save money (but obviously, if you can’t do it, then don’t do it).

1. Check your finances often. I check my bank accounts once or twice a day, which is probably too often, but I like to be aware of how much money is in there. Keep track of what you’ve got in the bank. Remember the due dates of your bills, and if they are automatic payments, it’s helpful to check your accounts frequently to make sure there is money in there. If you keep avoiding looking at your accounts and balances, you’ll never know what you have and it won’t be pretty when you thought you had enough but your card gets declined at McDonalds.
2. Try to make some kind of budget. If you look on Pinterest, you’ll see millions of pins about the perfect budget and how to download (or purchase) the spreadsheet they’ve created. You don’t have to do it that way. I’m currently using Mint, but I make it as a “rough version” because I know that I’m not always going to spend my money the exact same way every month. I’ll always pay my bills, of course, but maybe one week I meet up with a friend and another time I buy someone’s birthday present. You can make a budget with Word, Excel, one of the many apps out there, or make it as simple as using pen and paper. Just try to put an estimate of what you make each month and what you think you might spend.
3. Spend wisely. If you’re buying groceries, cut coupons and check the weekly ads to see what’s on sale (and shop around at multiple stores if you can). Wait until there are sales to buy your clothes, or look at the clearance racks instead. If you’re paying a lot for car insurance, get quotes from other providers. If you want to be able to save money for later, you have to also be saving in the present. By using coupons, going to other stores, and checking the internet for different options, you’ll be able to take the extra money you saved today and put it towards your vacation to the Caribbean a year from now.

In your twenties, it can feel almost impossible to save money. Or make money. Or have money at all. However, there are millions of other people out there who are in the same boat. So maybe think twice about altering your entire life or thinking you’ve done everything wrong because a financial expert said so.