Saving money doesn’t mean cutting off all the good things you truly love and enjoy. It only means checking your motive for spending and using your money on things which really matter to you. Below are a few savings tips ideal for young adults.
1.Set savings goals.
Savings is easier when it is towards a goal. What are you saving towards? The price of the goal will determine how much you have to save within a period of time given your income level. Set a goal. Make it clear, break it down to the barest minimum and start working towards it.
2. Set and follow a budget
Budgets help you track where your money goes. Read on more on how to set a personal budget here.
2. Cut down on impulse buying.
If you don’t need it, don’t buy it. Have enough self-control to buy on a plan. Avoid window shopping for your favourite things. If you want to buy an item, add it to your budget. Anything you buy impulsively outside your budget leaves room for a continuation of the habit.
3. Only buy things which matter to you.
Filter your spendings with motives. Why do you want a particular thing? Let your answer guide you. Look at the bigger picture. Don’t follow the Joneses. How will the purchase of that particular thing affect you? I am all for having fancy things. All I ask is that you buy fancy things because you want to and not because you were coerced into doing so.
5. Spend a couple of minutes each week reviewing your finances and spendings.
Spend time trying to understand how your money was spent. If you know how you earn your money, it is only fair you get hold of how you spend it.
Here are five tips to help you save. Saving is a great habit to have no matter the level of your income. Make it a point to set an amount each month towards a goal.
Also published on Medium.