How to save on an entry-level wage

Plus: Centralize your finances + Economic report

March 19th, 2025

🎙️ Did You Know? Studies show that paper money can harbor more bacteria than a household toilet. 🤢 Before digital payments, people had no choice but to exchange germ-covered bills and coins daily. Even in ancient Rome, money changers would clean coins with vinegar to reduce contamination. Today, crypto offers a cleaner alternative—no physical exchange, no hidden germs, just fast, secure, and contactless transactions that keep both your finances and your hands spotless. 🧼💸

The Weekly Grind

20-Somethings and Surviving
How Much Can You Save in Your 20s?

Have you heard of the 50/30/20 rule? It's usually the personal finance advice that experts give. It says you should divide your income like this: 50% for needs, 30% for wants, and 20% for savings. The rule was popular for a while, but these days, it seems more like a fantasy than a plan. With the average entry-level salary at $43,262 ($3,605/month before taxes) and rent alone costing around $1,500–1,800 in many U.S. cities, saving 20% of your income is a stretch for most young professionals. So, how much can you really save in your 20s?

The following are our honest suggestions, no affiliate links or kickbacks apply. 

How to Save Smart on an Entry-Level Salary

The Federal Reserve's data shows that the median savings balance for Americans under 35 is $8,000, which highlights the challenges of building substantial savings early on. So, we've got to remember that the main challenge for saving is the current economic uncertainty and rising prices. We can follow a certain plan for a while, but if we're not adaptable and don't take accountability, we can't keep up a steady flow of savings.

Start Small, Build Gradually

You don’t need to save $700 a month to be financially responsible. Start with an emergency fund of $1,000 to cover unexpected expenses. Once you hit that, aim for 2–3 months of living expenses. Small wins build momentum.

Set Manageable Goals

Break your savings targets into bite-sized chunks. For example, saving $5,000 in a year is less overwhelming when you think of it as $417 a month, or even $100 a week. Every dollar counts.

Rethink Housing

If rent is eating half your paycheck, consider alternatives like roommates, living farther from the city center, or negotiating utilities.

Automate Your Savings

Out of sight, out of mind. Automate 10-15% of your income into a savings account.

We know saving isn't what it used to be. But it’s imperative to keep our focus on building a solid emergency fund while increasing our income. Remember, a salary increase doesn't need to mean more spending. Let's adjust our percentage of monthly savings based on our professional growth. 

Thoughts? Let’s connect on LinkedIn and talk about how to make saving work for your lifestyle. 💸

Take control of your finances

Having all your finances in one place gives you a clear, real-time view of where your money is going. This helps you make smarter decisions and stay on top of your goals. Here are four great apps to help you take control of your financial life.

PocketGuard automatically categorizes your transactions and shows how much money you have left for daily spending after bills and savings. It also offers debt payoff tools, customizable budgets, and SMART goal tracking to keep you on target.

Empower provides a 360-degree view of your finances by linking all your accounts, banking, investments, loans, and retirement funds. It tracks your net worth, offers retirement planning tools, and provides investment insights to optimize your portfolio.

Goodbudget brings the classic envelope budgeting system into the digital age. It’s perfect for those who want to allocate funds to specific categories and track spending manually to stay mindful of their habits.

HoneyDue is designed for partners to manage shared finances seamlessly. It tracks bills, sends reminders, and even includes an in-app chat feature for discussing transactions or financial goals.

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Imad Khan

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As we get closer to the April 15 federal tax filing deadline, you can expect prices to spike, as services like TurboTax, H&R Block, TaxSlayer, and TaxAct tend to raise their rates for federal and state returns.

Molly Bohannon

The Department of Education announced layoffs affecting nearly 50% of its workforce, placing around 2,000 employees on administrative leave starting March 21. The cuts follow office closures for "security reasons."

Jeff Cox

February’s consumer price index is expected to show a 0.3% monthly rise, with annual inflation easing slightly to 2.9% (headline) and 3.2% (core), remaining above the Federal Reserve’s 2% target, likely keeping rates steady at next week’s meeting.

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