Saving money in your 20’s could be really tough and inconsistent. This is the time of our life where most of us don’t seriously manage our finances. We have this mentality that, we’re just starting our life; there’s time for savings and investing and that would be when we reach our 30’s or maybe beyond that.
As the popular saying goes, “Early bird catches the worm”, so if you begin saving with your first job, you are likely to get a bright future ahead of you. Below are easy rules that if you follow will surely give you access to an exceptional life.
Set your goals
Your main goal is to save to help you accomplish more goals you want in life. First goal is to produce a stream of income through a job or business. You need a good source of income to sustain your savings. When you find a good source to help you save, you can start setting your goals one by one.
Organize your goals
Organizing your goals will help you assess the budget and timeframe.
You have different goals that you must categorize first. It’s up to you how would you prioritize them. For instance, one’s goal is to buy one of Lend Lease’s houses for sale in Perth, next is to build a family. While this one thinks of building a family first before home buying. To organize goals, ask yourself, what are my priorities?
Assess budget and timeframe
To see if your goals are feasible, you need to assess first the budget and timeframe. Does my income afford the budget meant to save for this goal and would it meet the deadline of accomplishing it?
Use Credit Card Responsibly
Most people especially the millennials, overuse their credit cards and afterwards find themselves in a difficult financial situation or worst, bankruptcy. It’s really tempting to use credit cards but think of it as debt you need to pay using your future earnings you are not holding yet. This may really affect your future savings.
Limit your spending
There’s one challenging financial rule to follow during your 20’s; it’s giving up some of your luxurious habits that would only hinder you in saving enough for your goals. Unnecessary expenditure is the ultimate barrier to saving for your future.
Start your retirement plan
If you are going to start investing for your retirement as early as you land your first job, attaining wealth is going to be a duck soup.
Understand the value of money
We can’t get money that easily. We need to work for it 40 hours a week, 200 hours a month. If you place a value on something, you tend to keep it. Same thing with money; it’s important to keep and spend it wisely as it will give you the rewarding feeling in time.