Do you already have a habit of saving? Saving has become common advice and has been introduced from an early age.
It turns out that saving also provides many benefits, one of which is financial freedom. Eric Roberge, a financial planner through Discover argues that when someone has money in savings, then he will feel more free to do anything and not get stressed easily.
People who enter their 20s generally have entered the world of work and have income. If you want to start saving, this is the type of savings you can start in your 20s. Let's see in full below!
1. Emergency Fund Savings
The first and one of the most important is saving for an emergency fund. For those of you who don't have a partner, you can allocate a fee of 3 times your salary.
You can start setting up an emergency fund by setting aside 10% of your salary. In addition, you should save your emergency funds in a place that is easily accessible at any time, for example, in a regular bank account.
2. Savings for High Cost Items
It's okay to take out a loan to buy high-cost items such as a house, car, or land. But you should be able to reduce your loan by having savings to buy the things you need. Don't forget to always make a priority list so you don't go crazy.
3. Long Term Savings
For those of you who already have a steady income, you can start long-term savings such as deposits to prepare a retirement fund. By setting up a retirement fund, it is hoped that you can live comfortably in old age.
For deposits, every month you will deposit a certain amount of money and the money can only be taken after the end of the period. You can open an account for long-term savings at various banks.
4. Short Term Savings
After working all year, you might want to go on vacation or buy a new gadget as a self-reward. You can make short-term savings, for example for 6-12 months and can be taken at the end of the period. For short-term savings, you can save by investing in mutual funds or bonds.
5. Hajj Savings
Lastly, there is Hajj savings. For Muslims who can afford it, performing the pilgrimage is done to complete the 5th pillar of Islam.
In 2022, the Ministry of Religion stated that people who can go for Hajj must be under 65 years of age. So, you can start saving from your 20s so you can meet the requirements. You can read about the 2022 Hajj regulations on this page.
To start Hajj savings, many banks have provided the facilities. You can open an account with an initial deposit of $100. This savings will really help you because it is not easy to disburse and usually comes with insurance.
How, are you ready to save?
