How to Save Money: 5 Tips for Young Adults

Looking for ways to save money? Same.

POV: You’re in your twenties, and you’re just trying to live your best life.  You landed a full-time job (congrats!) and you’ve finally stopped living off your parents.  You’re paying for your own rent, buying your own groceries, and spending on whatever you please.  By now, you’ve probably figured out that everything costs money, and small purchases can easily add up.  You’re not pinching pennies, but you’d like to get some discounts and save where you can.

Here are five helpful tips on how to save money that I wish I knew years ago!

1. Use a budgeting app.
I use and recommend Mint by Intuit.  It’s a free, comprehensive personal finance app where you connect your bank accounts, create budgets, and categorize each of your transactions.  You can create savings goals and set up reminders to pay bills. Mint also provides your Transunion credit score for free! The interface is easy to use and you’ll be able to access your budget any hour of the day with just a few taps.

Having a budgeting app that automatically updates with every purchase and direct deposit from my work is so helpful and has pretty much reduced all of my financial stress.  Can I afford to get another pair of leggings? I don’t have to guess because I have the numbers right in front of me.

I also like that the app is very secure. Every time you open the app, it requires a password/PIN or TouchID.  If you close Mint, open Instagram, and then try to go back to Mint, you have to re-enter your password/PIN or use your fingerprint.

2. Get cash back by shopping on Rakuten.
My mom just discovered Rakuten about a month ago, and I wish I had known about it sooner because it’s actually kind of a game-changer?! It sounds too good to be true, but I can confirm it’s real.

Imagine that Rakuten is an influencer that companies are paying to advertise their products.  If you use Rakuten’s code when shopping, Rakuten gets a commission from the company you shopped at, and you’ll get cash back.  Like they literally mail you a check or pay you through PayPal!

Rakuten has a ton of companies on its site like Target (1%* cash back), Walmart (up to 6% cash back*), Glossier (2.5%*), Sephora (6%*), Ulta (up to 8%*), Nike (10%*), Adidas (15%*), Forever21 (5%*),  Nordstrom Rack (1%*), Best Buy (up to 3%*), and so many more.  I just installed the Rakuten Chrome extension and learned they even have deals on Canva (40%*).  Rakuten also offers 1%* cash back at some grocery stores like Albertsons and Vons.

*rates are subject to change, they are accurate as of 12/21/2020

I’ve been mainly shopping online this year because of the virus, but Rakuten works in-store as well.  You can select a store online or on the app, connect your credit card, and then make the purchase with that credit card when you shop in-person.  Both online and in-store purchases will take about 2-3 days for the cash back to show up in your Rakuten balance since the store has to approve the transaction.  As of now, you can’t apply your Rakuten balance to any purchases, but every three months Rakuten will mail you a  “Big Fat Check” if your balance is over $5 (or send it to your PayPal).

I prefer to visit rakuten.com on my computer, but there’s also a mobile app which is pretty convenient for when you’re on the go.  If you’d like to sign up with Rakuten, use my referral link below, and we’ll both get $20 if you spend $20 within 90 days of signing up*! US and Canada only. https://www.rakuten.com/r/LAURAC6593?eeid=28187

Pro tip: If you have any issues that can’t be answered via their help articles, definitely email their Twitter customer service email address twitterhelp@rakuten.com. Don’t bother with the general help email address.

3. Unsubscribe from email marketing.
Because you wouldn’t have bought that sweater from Anthropologie if you didn’t know it was on sale, right?  Ok but did you really need it? Email marketing is annoying because brands send emails way too frequently, but it’s also annoying because it works.  I’ve learned to unsubscribe to all fashion and skincare brand emails, and that has saved me a lot of money over the years.

I also don’t follow my favorite brands, particularly clothing brands, on social media so I’m not tempted to buy things I don’t need.  I don’t get too many clothing ads on social media, either.  The algorithms only know your interests if you teach them. I try to stay far, far, away from the shopping tab on Instagram, I can’t even afford to think about that.

If you’re into fashion, and that’s what you choose to spend money on, that’s totally fine.  I chose to focus on clothing because those purchases tend to be around $20+ and quickly add up. Maybe you unsubscribe from Starbucks emails or Wayfair emails instead.  Sales are great, but the goal is to spend less on things you don’t actually need.

4. Stop paying for parking and food delivery.
I’m a photographer, so I’m always out and about for photoshoots.  I also love trying new restaurants.  I do budget $20 a month for parking, but I really try to avoid paying for it at all costs. I always check spotangels.com or the Spot Angels app beforehand to find the cheapest parking near my shooting location or restaurant.  You input the address of the location and what day and time you’ll be parking, then it’s just like Google Maps, but it shows the meters and the free parking in an area.

In Los Angeles, there are neighborhoods everywhere, and I save money every week by getting somewhere early, parking in a neighborhood, and walking 5-10 minutes to my final destination.  If I’m driving alone, I only do this during the daytime or if I know I’m in a safe area of the city.

I honestly hate paying for food delivery.  I just don’t trust other people to find my address and deliver what I ordered when they say they will.  Plus, when you pay for delivery, you have to pay the delivery fee, then add on a tip, so your $8 fresh burrito just became a $14 lukewarm burrito on Uber Eats.  That extra $6 every Friday and Saturday night will cost you!  Try picking it up yourself and putting the amount you would’ve spent on delivery/tip into your savings.

5. Get a credit card that gives you rewards points or cash back.
Where do you spend the most money? If it’s Target, get the Target REDcard and get 5% back on all your purchases.  Do you spend a lot of money on Nordstrom? There’s the Nordstrom Card.  Amazon and Whole Foods?  Check out the Amazon Prime Rewards Visa Signature Card.

Also ask yourself, where do you want to save the most money? For me, it’s travel.  I work in Los Angeles, but I always go home to spend the holidays with my family in Seattle. Flights are often $400+ round trip for Thanksgiving, even if I book tickets months in advance.  With the Alaska Airlines Visa Credit Card, all of my purchases give me miles that I can use to fly wherever I want to go. Pretty much every airline has a credit card, so if travel is a priority, definitely check out your preferred airline.

Note: Many of these credit cards require you to apply and have a minimum credit score to be approved, so if you’ve never had a credit card before, you probably can’t start with a rewards card.  If you don’t have any credit history, you need to build that first.  You wouldn’t lend money to a stranger, and neither would a bank.   Start by getting a credit card through a bank, make purchases (but don’t spend above your credit limit), and consistently pay off your debt in full and on time to show banks that you’re trustworthy.

I hope this post was helpful! If you have any other tips on how to save money, please leave them in the comments below.

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