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Saving and Investing Tips for 20-somethings

Wednesday, December 2, 2015

Today's post is dedicated to my 20-somethings SavingsPinay readers. I will impartinng some of the best Saving and Investing Tips that can make you take advantage of your age. I am a big believer that the 20's are the best time to save money and to learn how to invest so I hope in this post you will find out helpful financial tips.

The Need to Save and Invest Money

It was September 30, 2014 when I shared on a blog post The Ultimate Secret to Save Money. I love that post so much for it always remind me of what's important. And that's to be aware of the need to save and Invest Money. Awareness is the key to everything. The more we know, the more we will surely succeed.

I've been on an overspending moment for the month of November and though I still manage to save money and invest on my mutual fund, I know that I need to be more aware and more wise in terms of money matters.

As 20-somethings we have all these wants that may ruin our budget. It's even harder when your the thing that makes you happy require you to spend money. Blame it on my obsession with makeup that I review and feature on my personal blog IzzaGlino. And believe me when I say that no matter how aware I am that I need to stop buying, that urge is just there...making me deaf to my own plead.

Why Save and Invest In Your 20's

There's only one reason why you need to save and invest in your 20's and that's TIME. Time is one out of the two important factors that could make your money grow. Read the other one on my recently concluded series : Yumaman sa Mutual Fund. 

On The Time is Running Out!!! Learn the Importance of Saving Money Now, I mentioned the three reasons why you should start saving your money.

  1. Saving Money makes you sleep peaceful at night.  Once you set yourself of having a proper saving by living within your means or taking other extra steps your financial stress will diminish. 
       2. Saving Money will Empower you to have Better Control of Your Own Destiny. Having proper savings will empower you to make financial decisions that will  better out your life. You can aim higher in life and have greater chance of achieving each goal you create.

        3.  Saving Money can potentially earn you Passive Income. First save enough money as your contingency fund aka Emergency Fund. From then slowly save again another amount but this time ride an investment vehicle that satisfies your character.

Then on my post Learn to Invest Without Tears Before 2014 Ends I shared three reasons why you should invest now.

1. You are not getting younger so you need to plan your retirement as early as now.

2. You have familial responsibilities and investing gives you the capability to have a chance in making your money grow.

3. You do not know where to put your money. Instead of wasting your money on items that don't appreciate in value why not invest? Investing is a good way that you can spend your money intelligently.

How to Save and Invest in Your 20's

Commit in a percentage you want to save and invest

If you remember my post 50-20-30 Rule of Budgeting then you know how I suggest 20% of your take home page to go on your Financial Freedom. Financial Freedom means your financial investments and savings or goals that you have in order to financially succeed. Count on here your debt payments, loans, savings and/or investments from different investment vehicles you own. 

If you ever wonder how you can save within the salary you are earning then read my post How to Save within Your Salary. In that post I introduced how you can save whether you are earning 10,000pesos a month, 15,000pesos a month and/or 20,000pesos a month.

Of course save what you can. You can start with 10% of your take home pay if that's the only percentage you can offer. What matters most is you are slowly building a solid financial foundation. 

Take advantage of Investing Vehicles you can afford

There are so many investment options you can try with your bank. From Unit Investment Trust Funds aka UITF to Time Deposits, Treasury Bills and Bonds. Investing as I always say is one of the many ways you can make money work for you. 

Another investing vehicle that many might not be familiar with is the Modified Pag-IBIG II (MP2). The MP2 program is a savings scheme designed for Pag-IBIG I members have another saving options that yield higher interest. Thus, you earn more with the as little as 500pesos monthly contributions. This reserves a separate post and its something I am still researching on how I can upgrade my Pag-IBIG 1 to Pag-IBIG 2. Pag-IBIG is not just a mandatory government deduction on your salary. It is a type of mutual fund that can pay you dividends in the future. 

CLICK THIS LINK for the full list of Investment Vehicles You Ought to Know.

Earn More to Save and Invest More

Let's be realistic here. Saving and Investing in low income can be pretty tough. I started investing with a salary of 13,000 and I am super blessed on how my salary increased in just a matter of 1 year. READ: 8 Tips to Have a Major Major Salary Increase.

It was hard saving and investing on the early stage because my salary is just enough to cover my expenses. But you just have to make a commitment to yourself that you'll dedicate a portion of your salary on your financial freedom.

Ask your immediate supervisor or your boss if there's a room for a salary increase or perhaps a promotion. If there's none then explore ways you can increase your income along your full time job. READ: How You Can Be Promoted in a World where Everyone wants to be Promoted.

For ways you can increase your income then check out the following posts:

I think as 20-somethings it is ok to obsess over your ability to earn money. You have a lot of energy and a the online world is just super generous in giving extra income ideas to all. 

Take Risks, Make Mistakes, Learn From It and Move Forward

Do not be afraid of investing in your 20's. Have a diversified portfolio and take advantage of the maturity of your money in years to come. Equities are your best friend and you can learn more about it on my November SavingsPinay Series. You may make mistakes along the way but what's important is you learn from your mistakes and continue securing your future. 

Invest in Yourself

If you want to be really successful then you have to invest in yourself. Do something today that your future self will thank you for. Enroll in an online course, travel in a place from your bucket list, learn a new language or maybe try something new. 

I do hope you learned something from this post. 
  1. How to Stop living from Sweldo to Sweldo
  2. Personal Financial Habits That Can Make You Become Richer - New!
  3. 15 Smart Ways to Earn Extra Income
  4. 3 Business Ideas You can Easily Start- Philippines
  5. 3 Money Tips for Parents
  7. 5 Steps to Become a Smart Shopper and Deal with Your Shopaholic Syndrome
  8. 7 Advantages of Mutual Fund
  9. 7 Important Lessons Every Financial Advisors will Teach You
  10. A Special Guide on the New FAMI Investor's Portal
  11. All About Banking in the Philippines Part 1
  12. All About Banking in the Philippines Part 2
  13. All About Paluwagan!
  14. All About Philhealth
  15. All About Sweldo in the Philippines
I hope you liked this post. Don't forget to do any of the following:

1 comment on "Saving and Investing Tips for 20-somethings"
  1. Hej killar, tack för denna intressanta artikel.
    Om du vill läsa mer om fördelarna med Spara i Fonder Tips detta är rätt plats för dig!