3 Money Saving Tips for Youngsters
Money saving is an essential skill that needs to be taught since adolescence. You might be prone to live one paycheck at a time, and it’s all good until it isn’t. There might be certain untoward emergencies when you need to fall back on savings; if you have none, it can be dreadful. Think of the pandemic — when all of a sudden, the world stood still; so many people lost their jobs and had to live off their savings for months.
To avoid such inopportune incidents, it is crucial to plan your finances. For young adults who are earning for the first time, these are some vital money-saving tips that should be kept in mind.
1. Make a list of all your expenses
At the beginning of the month, make two lists — one of the necessary expenditures and another of your wishlists. Even if you do not have to pay bills, everyone has a few fixed expenses like transportation costs, buying lunch, stationeries or art supplies, and more. The other list can include a pair of shoes you have been eyeing for a long time, a luxurious skincare product for your self-care, or a few titbits for yourself.
Subtract the fixed expenses from your earnings, then decide how many things you can buy from your wishlists. If you think it drains your whole month’s income, it is better to wait it out and divide the spending over the next few months. That way you will be able to spend more and have one thing of your liking. Even if it doesn’t bleed your salary, it is advisable not to spend whimsically.
2. Put aside some cash
Controlling the urge to buy something unnecessary is difficult, especially for youngsters. So, this critical saving tip might come in handy. Open a second bank account. When your salary, stipend, or pocket money gets credited to one account, transfer a fixed amount to another at the beginning of every month. Apply the out-of-sight-out-of-mind policy.
Keep doing this every month, and you will find that you will have a handsome amount in your savings after a few months. Transfer the money you save each month to the other account. You can’t spend the money you can’t save. You can also invest the extra money. It’s always a great idea to start investing from a young age. Investment is guaranteed to increase your wealth and have a good return on your hard-earned money.
3. Say no to plastic and digital money
For adults and youngsters, credit cards are a guaranteed way to vanish your savings. But when you are an adult, you have plenty of responsibilities to fulfill. Hence the urge to spend unnecessarily is reduced. But it is best not to use credit cards when you are a new earner with fewer obligations. It is plastic money, and you can keep swiping because you cannot see the amount of money being spent. When you spend cash, you will see the money getting spent, automatically reducing your wish to pay more.
Leave your credit and debit cards at home occasionally, and keep a fixed amount of cash in your wallet. And if you have to, use a card with both a daily and monthly limit.
There are other ways of saving as well, like opting for the student’s discounts. From libraries to certain movie theaters or OTT apps often provide you with a special deal when you are a student, always use that. Of course, keep a budget every month, and try to stick to it no matter what. The initial few months will be challenging, but then you will get used to it. And here’s a silver lining: you don’t have to wait for emergencies to encash that savings; use it on special occasions and festivals!
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