Hey everyone! I’m 20 years old and making 75k a year, living at home with my parents. They cover my needs, so I only pay for outings with friends and the occasional treat. I’m super grateful for that! I’m really wanting to own my own home by 24-25. Just curious, how much of my paycheck should I save for that future home? Any tips would be awesome!
Max out your Roth IRA and get that 401k match! Practice budgeting now. Set a fun money budget each month. If you want something big like a new phone or vacation, save specifically for it. Put all extra money into a HYSA for your house deposit.
@Omar
That sounds smart! What’s a HYSA?
OLIVIA said:
@Omar
That sounds smart! What’s a HYSA?
Haha, sorry! It stands for High-Yield Savings Account. It’s a great way to earn more interest on your savings!
@Omar
And seriously, being 20 with no expenses is a gift. Don’t spend it all on fun now!
You’re in an amazing position with no debt at 20! Aim to save around 40-50% of your paycheck for a home fund. It might sound like a lot, but it’s doable! I track my savings with Habit Money; it keeps me motivated. You could also set up a ‘home fund’ savings account with higher interest. Watching those savings grow feels great!
@Harlem
Habit Money? What’s that? Sounds cool!
Kelley said:
@Harlem
Habit Money? What’s that? Sounds cool!
It’s an app that helps you track your spending and savings. It shows where your money goes and helps keep your goals in check!
Definitely set a monthly budget for personal spending! It’s key to balance enjoying life now while saving for your future.
Great advice here! Also, don’t forget to show gratitude to your parents. Maybe contribute a bit to household expenses if they need it.
Love these tips! Saving for a home is a great goal. Just remember to enjoy your 20s too!