Parents usually give words of wisdom like “save money for your future” or “work hard to achieve your dreams”. We don’t really pay attention when we are young but as we age, we realise that those things are not very easy to do. This is most especially true for young people out there who are just starting to earn their own money.
Everything seems surreal once you start earning money. You get to buy anything you like from clothes, bags, gadgets and anything. You get to eat at a nice restaurant or do whatever you wish. You already have your own money so you get to do whatever you like.
However, all those things are just for short-term gratification only. You only live for the present. How about the long term? What will happen for your future goals if all your money were spent to satisfy what you like at the moment?
If you wish to buy your dream house or get to live a comfortable life with your family, then you should start assessing your spending and saving habits now.
In this article, we will give you some simple but effective tips to help you save money to secure a brighter future for yourself and for your family.
1. Create a weekly or monthly budget plan
The most common reason why people have no savings is because they spend all the money they got without any direction or plan. As long as they have money on hand, they spend it on whatever even on things that they do not really like. Well, that habit has to stop. It is best that you create a weekly or monthly budget plan so you know where your money should go. You should set budget for your food, shopping, bills payment and stuff. And make sure to strictly follow this budget plan.
2. Allot specific percentage to go to your savings
It is also time to start having separate savings account. You should allot specific percentage of your income to go to your savings. For example, you decided to save 15% of your income then be sure to save and deposit this money every month.
3. Avoid impulsive shopping
Avoid impulsive shopping that usually makes you spend more than you should. It would be best if you will schedule your trips to the mall and list down the things that you will buy. Also, do not buy all at once. For example, you wish to buy new shoes and bag – decide which one you need first then buy the other on the next payday.
4. Pay cash instead of using credit card
Also, pay cash instead of credit card. Using credit card gives you the illusion that you can spend more than what you can actually afford. This is very dangerous because you just swipe everything. The dilemma starts when you start receiving your bills. So make sure to use your credit card responsibly or best to just pay in cash.
5. Stay away from bad vices
Lastly, if you want a brighter future then maybe it is time to stop your vices. Anything too much can be bad so stop drinking too much, smoking too much and gambling too much. If you have any of those vices, then it is best to stop while it is early.
Be consistent with your financial discipline and saving money for your future through the tips that we just discussed. Before you know it, you are already looking at cheapest home loan and aiming to buy your dream house. That would be nice indeed!