Having money is a great thing. Some people would say it’s the root of all evil while others thing money makes the world go round. It’s neither evil nor the reason why our world exists. It should be earned and used responsibly. Some even get professional financial services to help them sort out their money and allocate it wisely. The thing is, saving money is a lot harder than spending it. This is true, especially for young people who are unaccustomed to their respective paychecks. As such, these people should be creative in saving up for a rainy day. Here are some tips to help you be more mindful when saving money.
List down all your expenses
This could be a bit stressful for young people nowadays but it’s the most effective practice to monitor how you spend. You can start by bringing a pen and small notebook with you all the time. In this way, you can list down all your expenses, from the cheapest to the most expensive, and see where you can cut back on them.
If bringing these two items isn’t your cup of tea, your mobile phone can be a better choice. There are a lot of apps out these that can help you list down on what you’re buying and organize them properly. Since your phone is with you all the time, you can do this practice with little effort at all.
Prioritize your savings
At the end of a given amount of time, each employee will get his or her salary for a job well done. The tendency for young people is to spend it right away and calculate what’s left for their daily needs. How about you do things the other way around and place your money in a savings account first? When you do this act, your monthly savings is ensured and you can budget the remaining money for everything you need until the next payday. This practice is proven and will enlarge your savings without you even noticing it.
Stay away from monthly payments
There are so many things in the world we’d love to get our hands on. Whether it’s a car, the latest phone, a new camera, that pair of shoes you’ve been dreaming about, or a vacation to the beach, a lot of money will be spent for these things. It’s all good and great but what you should stay away from is paying for them monthly. You might be tempted with an affordable price for each month but if you calculate the entire cost, it’s almost twice as much money in the first place due to interest. It’s better if you save actual money to pay for these items because you’ll get to save a lot more rather than paying for it monthly.
(Photo grabbed from: http://mommyedwards.com)
Don’t give your “Yes” that easily
Friday and Saturday nights are always that time when your friends will ask you out to have drinks or go to a party. Every now and then, your loved ones will also ask you to dine with them in the latest dining establishment in town.
It’s okay to do so once in a while but if you’re saying yes constantly, your money will grow smaller and smaller. Better practice the art of saying no when money is involved because it’s the only way to save up for the more important things in life, like your future family and house. If you don’t change this practice now, you won’t have anything in just a couple of years.