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6 ways for 20-year-olds to save effectively


Simply put, saving can be interpreted as an activity where you set aside part of the money you receive for future needs. Saving is, of course,  a good habit that should be introduced from an early age. However, it turns out that the culture of saving in Indonesian society is still quite low  compared to other Asian countries. Indonesia's savings rate was 30.9% in 2017. 

This number is lower than Singapore and China, which  reached 49 percent, and the Philippines, which has 44 percent. A number of things can be the cause of low community savings. For teenagers, especially students, the lack of savings may be due to limited income or pocket money earned. 

In addition, it is often a misconception that saving happens when there is leftover pocket money or income and it is not put aside first. That is why young people, especially students, are more vulnerable to a lack of savings.  

 The benefits of saving have been felt during the Covid-19 pandemic. When Covid-19 hit, many people's income decreased and they even lost their jobs. Families and individuals with savings or emergency funds can better cope in uncertain circumstances. 

Resilient families should have savings/savings (whether  money, jewelry, livestock, garden produce, etc.) that can be used at any time to meet their basic needs for at least the next 3 (three) months. You can use your savings  to cover necessities  or  business capital.  

 The Covid-19 pandemic has brought awareness to the importance of a smart household, one of which is saving. Especially in the new normal era, people are starting to change their behavior and living arrangements to adapt to the new ways.

Saving can be a good habit  to develop not only for parents, but also for teenagers and even children. It is important to emphasize that teenagers are starting to save in a controlled way and live frugally (not spend) in the new normal. 

 At a young age, you can ideally handle your own finances. In adolescence, everyone must start thinking about future needs, starting with the need for self-improvement, marriage, buying a home, etc. Amidst social needs like watching movies and hanging out, teenagers need to be able to put some of their money aside for savings.

 Here the tips for young generation

  • Create a savings goal 
The first step you should take before registering is to set a clear goal. Saving isn't about rushing to get lots of results, it's about making a commitment that needs to be kept  all the time. 

 If you have clear goals, this commitment will stick in your mind and prevent you from overspending. The goal of saving can be anything, such as a trip to the city of your dreams, wedding expenses or buying a new home. 

  • Determine the priority scale 
 Setting priorities is also an effective way to save money. By creating a priority scale, you  know what your most important needs should be  and you won't be tricked into buying things  you  want. Creating a priority scale will also inform you about your monthly budget and expenses.

This is one way to get to know your financial situation. However, create a  scale of priorities that makes you feel comfortable. Don't immediately put large and strained amounts into savings so that you can't meet your immediate needs, but give yourself at least a small reward for the hard work you've done. 
  • Manage funding 
Once you know your scale of priorities, manage your finances by dividing them 50:30:20. This comparison can be an effective way to save for the future, as 50 percent is  for basic needs. At the same time, 30 percent is for lifestyle or entertainment needs, and the remaining 20 percent is for saving and investing. 

 If you are already using this calculation, make sure you commit to completing it. Because saving is, after all, a duty. If you only do this for the first three months, your savings will not accumulate in time. The savings target was not achieved. 

  •  Enter monthly expenses 
 Another effective way to save for  your 20s is to keep track of regular monthly expenses. Although it may seem tedious, recording expenses is an important way to budget for the coming month. With this entry, you will know which expenses are unnecessary. 

 If monthly expenses are not recorded, one can continue to spend money at the beginning of the month and  fast at the end of the month, because the monthly money will run out first. You can do this every day, so you don't have to worry about keeping track of expenses. It can also avoid inaccuracy.  

  • Set aside Savings in the beginning 
Saving savings in the beginning is one of the effective  saving tools that many people often forget. People often save by using the  money left over after spending on basic needs and recreation (entertainment). 

This method can actually cause your savings to run out in the middle of the month.   So set aside your savings as soon as you receive a remittance or salary from your parents. Then put the money in a special savings account so you won't be distracted by shopping temptations. 

  • Don't put honor first 
A final effective way to save money is to not prioritize fame. Young people often want to pursue different lifestyles in order to make themselves look impressive. 

For example, if you're in your 20s and have a low income, you'll force yourself to buy gadgets worth tens of millions of rupees because you want to be seen as belonging to a particular environment. Of course, you don't have to imitate this, as it can hinder your efforts to save for the future. Here are six effective ways to save money that  can be used by students and young workers in their 20s. 

In addition to having clear goals, I found it important to be committed to not being swallowed up by honor. You have to start doing it so you can save money for the future. Maximize your savings efforts with the Flip application that allows you to transfer money to other accounts with no transfer fees.  

  •  Discipline 
 Whichever way you choose to save, discipline is the key to successful saving. To achieve great savings results, you must continue to save and strive to keep your nominal value rising. It is usually very difficult to start over as soon as you stop saving.
  • Use your activities and talents. 
Financially independent young people are those who  manage their money well and make the most of their potential talents and interests. Young people who want to increase their income and savings can use their interests and talents by writing paid articles, participating in contests, giving private lessons, and participating in many other productive activities. . 

  • Reduce non-essential spending
Reducing unnecessary spending can be achieved by identifying priority needs. For example, if his cell phone has a data plan, he might as well drop the Wi-Fi contract to save money. Another example is reduced spending on fitness center memberships because physical activity can  be done anywhere.  

  • Take advantage of special offers and discounts, but don't be fooled 
 Save money with a growing number of online stores offering discounts and special offers. From groceries to clothing to electronics, many online stores offer discounts on quality products. Take advantage of these discounts. However, don't be tempted by the many discounts to buy a lot of things you don't actually need. 

  • Penny's power  
When I go shopping, I often find coins lying around. If we  keep them carefully in one place, one day there will be quite a lot of them. This is also  my experience. Within a few months the coins she had collected over Rp 400,000 were deposited in the bank. 

  • don't be shy to bring your lunch 
These tips are still relevant to prestige reduction efforts. Bringing food from home to schools and offices means losing prestige and being able to invest in greater savings. However, bringing your own food will help you save money. Bring food if you are used to buying lunch and drinks. You only need to buy  drinks, and your food budget is set aside for savings. 

  • keep money in the bank 
 Bank savings are not only safe (from loss), but also protected from the risk of financial loss. Young people who are still in school can benefit from special student savings offers. 

Student Savings is usually free  with a small initial deposit. Separate daily and savings accounts for young people who are already employed. A mix of necessities and savings accounts risks suboptimal access to money, as money collected for savings is used for necessities and other desires.  

Another way to avoid simply spending your savings  to buy things you don't need is to save in the form of deposits or gold. Once savings reach a certain nominal value, they can be transferred in the form of deposits. For gold deposits, some banks and pawnshops now offer gold deposits starting from  very small grams (0.1 grams). 

  • Prioritize spending 
You often hear the saying, "The stakes are bigger than the stakes." This means that expenses are greater  than income/income. To prevent this, prioritizing spending, especially on teens who are already in the workforce, is a very good thing. Believe me, our needs are actually not as great as  we would like them to be. We often buy things we don't actually need, we just buy them  because we want them. 

  The 50:30:20 spending scheme  is widely used by both  families and individuals to manage their finances, with 50% of spending on essentials, 30% on essentials and 20% on savings/emergency funds/investments. It is intended to be filled. We must avoid debt, especially expendable debt, as much as possible. 

If you need to borrow money (purchase a house, property, car, etc.), don't let it exceed 30% of your spending so you have the flexibility to organize your spending for other needs. The 50:30:20 system is not binding either, because people have different needs and therefore different allocations of expenses. But as income and income increase, the distribution of savings should also increase, not even increasing spending for greed. 

 There are  many financial management applications today for recording expenses. In the age of digitalization, the use of books to record financials is declining. With this household management application, you can record your daily income, income, expenses, monthly financial report very easily and even create financial graphs.

Storage limit 

Knowing your  savings limits can reduce your risk of failing to save. what are you? 

  • Don't Create a Priority Scale 
 The future has many uncertainties, so it should be prioritized. If you want a bright  financial future, you should prioritize saving. Making something main is a priority. So save your paycheck before it is used for other purposes. The rest is used for daily needs. 

  • Misunderstanding of the concept of allocation 
 You might still think of savings as the leftover salary after you spend it to meet your needs. Many people think that allocation is the same thing as saving, even though it's a completely different thing. 
 What if your salary or income is used up for your daily needs? In such a situation, of course, you can't save. In fact, it should be the other way around, that is, you should spend your income first on savings. You must decide on a nominal monthly savings amount and allocate  your savings first when you receive your paycheck. 

  • No savings goal 
 Just like traveling,  you should always have goals in life, including savings. Setting goals makes strategy formulation clearer. 

 For example, a savings goal  is to provide for an emergency fund. Therefore, you need to decide how much budget to allocate each month. Then choose the type of savings that best suits your condition, including age, status, and income. 

  •  Consumer lifestyle 
 A man's free-spending disposition is closely related to his inability to save. An example of consumption is over-shopping. You will never be able to save unless you have the self-discipline to curb your consuming nature. 

The salary that goes into the account is always  used  to satisfy desires and desires when shopping. It's the wrong attitude to feel like you're missing out on trends by not buying something. How do you start saving when consumption is still going on?





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