If my friends were to describe me, one of the first things they’d tell you is that I love finding hidden money. I’m no savings guru, but I love doing research to find discounts, deals and ways to grow my money.
In university, this was a pretty simple task. I was fortunate enough to have my parents helping me throughout my post-secondary education, which I’m very grateful for; although I helped pay for tuition and other expenses, I never had any big financial burdens. I was growing my savings in tax-free savings accounts (TFSA) and high-interest savings accounts, and even bought a couple of mutual funds. So, when I finally finished university, I thought I could relax – at least financially – for a little while.
Although I consider myself somewhat ahead of the game, I still have a long way to go. For the first time ever, I have an array of new financial obligations weighing on my shoulders:
- Can I afford to move out?
- Is it smarter to buy or rent?
- Am I making the best investments for my current situation?
- What kind of retirement do I want to have?
Although my golden years are more than 40 years away, if I want to live comfortably when I’m a senior, I need to start saving now – even if it’s only $25 a month at first – so I’m not struggling to save in the future.
Although my long-term investing and savings plans are important to me, I also have short-term savings goals – on top of my day-to-day expenses – that are equally important. I’m using GetSmarterAboutMoney.ca’s savings guide to help me get started.
My short-term savings goals include:
- $3,050 for my potential move to South Korea
If all goes as planned, my boyfriend and I are moving to South Korea in September to teach English for a year. Although our accommodations and flight are paid for, we aren’t reimbursed for the airfare until after we arrive. We also need extra money to hold us over until we get our first paycheques and to kick-start our savings for travelling while we’re away. - $500 for my trip to Tennessee
I’m going to visit one of my best friends in July for a week and, lucky for me, I’ve been able to use frequent-flyer points to pay for most of my flights (a savings of over $400) making the damage to my wallet only $171. The rest of the money will be going toward gas (the airport is quite a drive from her house) and spending money for meals, day activities and, of course, shopping. - $1,303 for a new MacBook Pro and Apple Care
My current MacBook is almost six years old and, according to an Apple employee I recently talked to, my days are numbered. Since I’m potentially moving overseas soon, I’ve decided to bite the bullet. However, I’m holding off on buying it until the end of the summer so I have more time to budget for it without affecting any of my other short- or long-term savings goals.
Tip: If you have a sibling/friend still in post-secondary, get them to buy it for you and you’ll save 10%. Apple gives a discount to students, and lucky for me my sister is still in university. In my case this is a savings of almost $180! The actual retail price for both is $1,528.
Total savings goal: $4,853
This number isn’t too outrageous, and since I’m working full time before heading (hopefully) to South Korea, as well as bringing in other sources of income (more on this in a future post!), it should be easily attainable. Now that I have a number I know I need to work toward, adjusting my long-term savings and investment goals will be a lot easier (watch for future posts on investment and long-term savings tips for 20-somethings as well).
What are your short-term savings goals and how do you plan to finance them? Whether it’s saving for a vacation, a new computer, a down payment on a house/condo or even a smaller purchase, I want to hear about it!
I have been searching for resources for my 20-something son and this looks terrific. Thank you.
Currently saving for a condo, hopefully by the end of August – thanks for all the great tips on how to make my money work for me!! Keep them coming
Great tip about the Apple deal! It seems like if you look for them, savings are everywhere! Look forward to your future posts and advice on how to save. I have a terrible habit of saving money throughout the month or even several months, and then blowing it ALL. Is that still saving? At this rate I won’t have much cash for my “golden years”!! Good luck on your summer savings and plans!
Thank you all for the comments!
Sarah, I have a future post coming up in the future about the cost of renting vs. buying a condo. In the meantime though, you should check out GetSmarterAboutMoney’s “buying a house” section and their buy vs. rent calculator is a great tool to get a realistic idea of how much you need to save. Good luck!
Whitney, I’ve been in your shoes many times — have you tried tracking your expenses for a month to see where your money is going? It’ll give you a good idea of where your money is going and help you identify where you can cut back on. I have a few future posts coming up in the near future dedicated to budgeting/saving money tips for 20-something’s, but until then, you may find GetSmarterAboutMoney’s “budgeting” section helpful. Or, feel free to post below to ask me questions if you’d like some more tips!
This blog definitely made me realize I need to start making short term savings goals, even if it is just a little bit each week or month. Thanks for the awesome tips! I hope to see lots more
Great post and very informative! Keep these coming!
I, like you, actually enjoy researching different ways people go about managing their money, from truly enjoying reading books like ‘All Your Worth’ and ‘The Wealthy Barber’, and actually just decided (errr… not decide) bought a condo in my building with the intention of selling mine (currently on the market) for a higher price and be able to wipe out my mortgage in a few months as opposed to the 15 year payment plan I am currently on. A BIG risk, as I could potentially be carrying 2 mortgages, but if it does pan out I’ll be 28 and mortgage free — excited for the prospect!
Seanna,
Happy to hear I’m not the only one who enjoys reading up on how people handle their finances! And wow, that is a big risk, but if it works out, that is very exciting you’ll be mortgage free! Did you buy the new condo before or after the new mortgage rules came out?
Excellent post – you’re definitely on the right track! The saving for your retirement now in an RRSP can also help with the down payment when buying your first house/condo ….and it’s amazing how fast money adds up!
While you are doing great, thought I would share two tips that really helped me in my early 20s:
1- if you are living at home and thinking of moving out…put what you plan to pay each month for rent/mtg into . Not only will it help you see if your budget and expectations are realistic it will help build a nice nest egg.
2. Look into life insurance now. Often premiums go up with age….Now that I am in my 30s and have a family, I couldn’t be happier that I made this decision way back then!
Again great job and good luck with all your goals!!!
Hi Sarah,
Thanks for the response and really great tips! You’re definitely right, putting the money aside you plan to put into rent/mtg each month in the future while living at home is a really good idea. I’ve started writing a future post about buying vs. renting so I’ll definitely incorporate that tip into it! Your point about life insurance is another a great tip. I think that’s one of the last thing things 20-something’s think about, so that’s definitely something I’ll look further into for a future post! How old were you when you started looking into life insurance?
This article is a great reminder that even though in my 20s and don’t have the commitment of a family to support, that managing my money is increasingly more important. Thanks for the great tips!
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