You’re still young. Start saving now.

For most adults in their early twenties, they have less responsibilities. The money they earned mostly goes straight into their own pockets (and for some, into their parents’). So now is the best time to actually keep some of the money in several saving funds. Because, by the time marriage comes into the picture and two children in tow few years later, saving money can be a rather difficult endeavor.

1) Keep 10% of the monthly pay stub into a saving account. Let the money sit there and witness the magic of compound interest. (For Islamic banks, they call this bonus. Different Term Different Methodology.)

2)  Keep a small percentage (say 3%) into another separate account; let’s call this an emergency fund. This is to cover some unexpected expenses like car repair, hospital/clinic bills, impromptu vacations etc.

3) If you are planning to buy a car or a house, open another account and keep a percentage of 5 to 10% into this account. By putting the money directly into a special account (instead of leaving it in the current saving), you keep yourself from accidental spending.

Several other tips:

Be careful with credit card, start investing, buy insurance that includes saving plan, buy car with cash, spend less & earn more.

It’s not all about taking and saving. Give charity. Donate. Treat friends out for lunch or dinner. Teach others to earn more.

Read: Barbara Whelehan and Online Classes

Image by Nick Benjaminsz