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5 Goals You Must Save For in Your 20s

Here are some tips for saving that you must follow in your 20s. 
  • Adrija Das
  • Editorial
Published -01 Aug 2022, 18:33 ISTUpdated -01 Aug 2022, 18:55 IST
s saving tips

When you are fresh out of college and just beginning your career, you are just starting to experience life as an independent adult. This is the time when you have the opportunity to handle your finances and set the tone for money management for the rest of your life. 

This might be overwhelming for you but it is exciting at the same time. Managing your own money gives you a chance to take control of your life but this doesn’t mean that you should spend on anything and everything. Saving is an important aspect of life and you should make it a priority. Here are some tips for saving that you must follow in your 20s. 

Pay off Debt

pay off debt

If you’re starting a new life in a new city, after completing a hot-shot degree, there are very high chances you have a healthy debt build-up. This is most common in the form of student loans to fund your education. Most MBA degrees will cost you between 6 and 20 lakhs, on average. Even if you don’t have student loans, your parents may have fronted you some money to start your new life. 

Therefore, you should pay it all off if you can as it will allow you to start with a clean slate. 

Expert Tip

Make sure you have a financial plan in place to repay your debt at the earliest. Incorporating your monthly instalment payments into your essential expenses is a good option. Adjust your budget and prioritise these payments until you are debt-free. 

Emergency Fund

emergency fund

When we were younger, this was provided by our parents and our families. From things as trivial as late-night pickups to those as monumental as medical support, our parents usually provided it with all. 

Having a safety net ensures you can take risks, and push the boundaries of what is socially acceptable. This is one of the most important financial goals to achieve in your 20s. Start building an emergency fund that can act as a safety net for you.

Put aside a little bit of money every month, until you have enough to handle emergencies and unexpected expenses. There isn’t a fixed amount as to how much you should keep for emergencies, but as a thumb rule, you should have at least enough to cover 6 months of expenses. This will help see you through periods when you are between jobs or any other expense.

Once you have a backup plan in place, you’ll be able to take risks more freely. For example, if there’s a toxic environment at your office, you’ll be able to quit immediately and start looking for alternatives. If you miss your flight on your solo trip, you’ll be able to book an alternative on the spot to ensure you don’t mess up your plans. 

As an independent adult, the stage is set for you to challenge convention. But you need to have a safety net to truly let go.


insurance plan

Be it a sudden drop in your health, or a theft in your house, the answer is insurance. This can also act as a safety net for you.

You never really understand the importance of having insurance until you land up in the hospital unexpectedly, and are thrust with a ginormous bill. If the recent coronavirus pandemic has taught us one thing it is that never take something for granted, especially health. 

Start with a good health insurance plan and further, get a life insurance policy and others.

Don't Miss: 5 Women Share Career Advice They Wish They Knew In Their 20s

Down Payment

down payment

Your 20s are the time when you don’t have a family to worry about, you don’t have home loans to pay or anything holding you down.  

It is more prudent however if you can at least start saving for your down payments in your 20s which can include anything from your apartment to your car, depending upon your goals.

You can use a SIP to handle this. Saving mindlessly for a huge amount can be very daunting, therefore, you should invest a little bit every month, it’ll multiply and give you a much larger amount. For example, if you invest Rs 10,000 per month at a growth rate of 10%, you’ll end up with almost Rs 20.5 lakhs in 10 years. This can be a starter fund to set the stage for the next stage of your life.

Don't Miss: 50-30-20 Rule Of Savings You MUST Know About



It is never too early to save for retirement. You should plan well in advance so that you can create a sustainable financial plan that will enable you the freedom to enjoy to your heart’s content after you retire.

Expert Tip

You can look into long-term investments to aid your retirement savings.

For more such stories, stay tuned to HerZindagi!

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