Some evergreen money saving tips for young adults that will help you in long run. Money is an important thing and we should always try to save it.
Money is a quintessential part of our lives, yet only very few people know how to make, save and multiply money. To become financially independent, you must learn how to save money for investment.
If you save money for saving sake, you will not be able to sustain your saving habit. You need a solid reason why you want to save money, and that should be your vision for financial freedom.
Sometimes the most challenging thing about collecting money is starting. Remember that saving has nothing to do with how much money you earn. It has to do with discipline; it is a habit you cultivate.
When you save consistently for a while, it will become routine and easy to do.
Here are seven money saving tips to help you start saving->
Articulate a compelling reason why you want to develop the habit of saving. Do you want to be financially free? Or you want to save to invest in creating passive income? Do you want to be able to contribute to charity or your Church? Do you want to retire at a certain age and be able to travel the world?
Write down what your compiling reason is and place it where you see it daily.
Track your expenses:
You need to know how you are currently spending your money. Track your expenses for a month. It will help you to determine the amount of money you need to sustain yourself. It will also help you decide which costs to eliminate to enable you to have more money to save.
Set your savings goal:
Start by setting a target of the amount and frequency for your savings. It will largely depend on your income and how frequent you get your salary. You can save daily, weekly or monthly.
Increase your income:
As I mentioned earlier, you should start saving from where you are now. You can start with as low as $1. You should have a plan for increasing your income. However, depending on your goal, you want to coincide if your current income will enable you to reach your goal and how fast you can achieve your goal with your current income.
The idea is not to get another job. What you need is to learn a high- income skill.
What new skill do you need to learn, to enable you to achieve your goal faster?
Here are some high-income skills you may consider learning->
a. Mindset Skill:
Is the ability to manage your mind. The battle is always won or lost first in your mind. Procrastination, fear, limiting beliefs, depression, and frustration all occur in the brain.
b. Closing Skill:
Is the ability to persuade customers to buy your goods or services. It is the ability to sell.
c. Copywriting Skill:
Is the ability to communicate with words. It is closing in print. It includes a sales letter, sales email, and content marketing.
d. Public Speaking Skill:
Is the ability to speak to a group of people. It could be training and delivering a keynote speech.
e. Leadership Skill:
Is the ability to communicate clearly and effectively with your team. To be a good leader, you must be an excellent communicator. You need to express your vision, values, and it is required for creating a company culture. Business is a team sport, and you are only as strong as your team.
f. Time Management Skill:
Is the ability to manage and organize your time for maximum result. You need to learn how to focus and execute the task at hand without allowing yourself to be distracted. It is an indirect money saving tips.
g. Financial Literacy Skill:
Is the ability to understand and interpret the financial statement — the ability to understand the money language. You do not need to be an accountant to understand credit score, return on investment (ROI), profit and loss, capital gain or a capital loss.
Pay yourself first:
Pay yourself 10% of your income and live on the rest. Create an interest-bearing account. This amount should be saved strictly to invest, which includes investing in developing your new high-income skill. This amount should never be spent on expenses. It is for growing your passive income.
Budget the rest:
Budget the remaining 90% of your income to cover the following;
For many, this is deducted directly by the government from your income.
Set aside money to cover all your monthly costs. You need to train yourself to live below your needs. Establish your priorities and cut down on your spending. However, it is better to focus more on increasing your income than saving pennies. It will take you much longer time to achieve your savings goal-saving pennies. Please do not get me wrong; if you do not learn to live below your income, you will always struggle financially no matter how much income you earn.
c. Rent and Utility:
Set aside money for your rent, power, water, heating, gas and all your other utility bills.
Set aside money for entertainment. It may be for a date with your significant one or a spa treatment for yourself. You should not make your saving habit a painful experience. If your subconscious associates your saving habit with plain, you will shortly self-sabotage the process.
e. Unplanned expenses:
Set aside money for liabilities that may come up that are not part of your regular running cost.
f. Buy value:
Do not buy cheap things that will require high maintenance and require early replacement. Buy worth, it helps you save in the long term. You do not want to be penny wise pound foolish.
Making saving automatic:
Give you Bank a standing instruction to automatically deduct the 10% from any amount that is deposited into your income account and credit your savings account for investment. It is the one of the most common money saving tips.
– Written by Pеtеr Alеоgеnа who is an Architect by training and professional Copywriter who specializes in writing an in-depth blog post about Real Estate, Sustainable Construction, and Project Management topics with 19 years оf еxреriеnсе in the building/construction industry.