Strategies that will help you strengthen your savings habit and grow the pot of cash you’ve worked hard to set aside
Your twenties are a defining decade—full of new experiences, career beginnings, and financial firsts. It’s also a time when money can slip through your fingers faster than you’d like, thanks to student loans, rent, or the temptation of a carefree lifestyle. But building smart money habits now can set you up for long-term financial freedom. Here are seven practical, detailed tricks to save money in your twenties that balance frugality with enjoying life. As of March 21, 2025, these strategies are tailored to today’s economic landscape, from rising costs to gig economy opportunities.
1. Master the 50/30/20 Budget Rule
- What It Is: Allocate 50% of your income to necessities (rent, groceries, bills), 30% to wants (dining out, entertainment), and 20% to savings or debt repayment.
- Why It Works: This simple framework forces you to prioritize saving without feeling deprived. In your twenties, when income might be modest, that 20% builds a foundation for emergencies or future goals like buying a home.
- How to Start: Use a budgeting app like Mint or YNAB (You Need A Budget) to track your spending. For example, if you earn $2,500 monthly: $1,250 goes to needs, $750 to wants, and $500 to savings.
- Pro Tip: Automate the 20% into a high-yield savings account (aim for 4–5% interest rates, common in 2025) so you never see it in your checking account.
2. Cook More, Eat Out Less
- What It Is: Shift from frequent takeout or restaurant meals to home-cooked food.
- Why It Works: Eating out is a budget buster in your twenties. A 2024 report from the Bureau of Labor Statistics found that millennials spend nearly 50% of their food budget on dining out. Cooking saves hundreds monthly—$10 on a homemade pasta dish vs. $25 at a restaurant adds up fast.
- How to Start: Batch cook on weekends (think chili or stir-fry) to cover weekday meals. Invest in a $30 slow cooker for low-effort, high-reward dishes. Shop sales at grocery stores or use apps like Flipp to find deals.
- Pro Tip: Host potlucks with friends instead of bar nights—cheaper and just as fun.
3. Embrace the Side Hustle
- What It Is: Earn extra cash through freelance gigs, part-time work, or online platforms.
- Why It Works: In your twenties, time is on your side. A side hustle can fund savings or pay off debt without derailing your main job. The gig economy is booming—think Uber, Fiverr, or selling crafts on Etsy.
- How to Start: Identify a skill (writing, graphic design, dog walking) and market it. For example, freelance writing at $50 per article could net you $200 monthly with minimal hours. Dedicate all side hustle income to savings.
- Pro Tip: Use platforms like Upwork or TaskRabbit, and keep taxes in mind—set aside 25–30% of earnings for Uncle Sam.
4. Slash Subscription Overload
- What It Is: Audit and cut unnecessary subscriptions (streaming, apps, gym memberships).
- Why It Works: Subscriptions creep up quietly. A 2023 C+R Research study showed the average person spends $219 monthly on subscriptions—over $2,600 yearly. Trimming even half saves serious cash.
- How to Start: List every subscription (Netflix, Spotify, etc.) and cancel what you don’t use weekly. Share plans with roommates or family (e.g., one Netflix account for $15 split three ways is $5 each).
- Pro Tip: Use free alternatives—library apps like Libby for books or YouTube for workouts instead of a $20/month gym app.
5. Shop Secondhand Like a Pro
- What It Is: Buy clothes, furniture, and tech from thrift stores, apps, or resale sites.
- Why It Works: Your twenties often mean furnishing apartments or building a wardrobe—big expenses if you buy new. Secondhand saves 50–80% while keeping you stylish and sustainable.
- How to Start: Hit thrift stores like Goodwill for $5 jeans or use Poshmark and Depop for curated finds. For tech, check refurbished options on Amazon or eBay (a $300 used iPhone vs. $1,000 new).
- Pro Tip: Sell your own unused stuff on these platforms to double the savings.
6. Negotiate Everything
- What It Is: Haggle on bills, rent, or purchases to lower costs.
- Why It Works: Companies expect negotiation, especially in your twenties when every dollar counts. A 2024 Consumer Reports survey found 89% of people who negotiated a bill saved money—often $50–$100 annually per service.
- How to Start: Call your internet provider and ask for a loyalty discount or match a competitor’s rate. When renewing a lease, offer to sign longer for a lower rate (e.g., 15 months instead of 12). Even car insurance can drop if you ask about bundling or discounts.
- Pro Tip: Be polite but firm—say, “I’d love to stay with you, but I’ve found a cheaper option elsewhere. Can you help me out?”
7. Delay Big Purchases with the 30-Day Rule
- What It Is: Wait 30 days before buying non-essential items over $50.
- Why It Works: Impulse buys drain savings. Waiting curbs emotional spending—studies show desire fades after a week. In your twenties, avoiding a $200 gadget here or $100 shoes there keeps cash for bigger goals.
- How to Start: Write down the item, price, and date. After 30 days, reassess: Do you still need it? If yes, can you find it cheaper? Most times, you’ll skip it altogether.
- Pro Tip: Pair this with a “fun fund” from your 30% wants budget so you don’t feel deprived—just plan the splurge.
Why Saving in Your Twenties Matters
These tricks aren’t about penny-pinching for misery’s sake—they’re about building a safety net and freedom. A 2023 Federal Reserve study found 37% of Americans can’t cover a $400 emergency. Saving now means less stress later, whether it’s for travel, a house, or just peace of mind. Plus, money saved in your twenties grows exponentially with compound interest—$500 monthly at 5% interest becomes over $208,000 in 30 years.
How to Make These Tricks Stick
- Start Small: Pick one trick (like cooking) and add others monthly.
- Track Progress: Use a spreadsheet or app to watch savings grow—seeing $100 extra motivates you to keep going.
- Reward Yourself: Celebrate milestones (e.g., $1,000 saved) with a small treat from your wants budget.
Conclusion
Saving money in your twenties doesn’t mean missing out—it means setting yourself up to live better later. These seven tricks—budgeting smartly, cooking at home, hustling on the side, cutting subscriptions, shopping secondhand, negotiating, and delaying purchases—blend practicality with real-world impact. As of March 21, 2025, with inflation cooling but costs still high, these strategies are more relevant than ever. Start with one today, and watch your bank account (and confidence) grow. Which trick will you try first?
