Young people regularly have a habit of spending all their money to serve the purpose of life experience, but not saving money. In fact, with active and vibrant youth, young people spend without control, because they are not tied to any burden at all. But if you want to accomplish bigger goals, require more investment, then practice the habit of saving now.
Saving is a very good habit, especially if you can build it from a young age. Saving money is something that we all should do because of the unexpected risk that can happen at any time without your knowledge. So having backup money will never be redundant in your life. Let's find out why you should save money and your idea for saving!
1. Savings for emergency situations
Life does not anticipate anything, everything can happen in a very unexpected way and you need to have contingency funds available for unintended situations. A savings account will help you cope with unexpected difficulties like car damage, illness, work incidents...The majority of young people have loans, have to pay for accommodation, books, food, and you can even take advantage of promotions discounted for goods and services(for example Coupons, deals, promo codes, promotion, sale-off,...) to reduce costs in life. However, if you already have a backup fund, you will be completely active in it.
2. Savings can make you more money
It sounds a bit absurd, but actually, it is. Making money is very difficult but spending money is very easy. So, why don't you save yourself a considerable amount of money from which to implement the projects you intend to do, such as business or investment? If you're lucky, you absolutely can earn yourself an even bigger amount than the money you've invested. Money itself is not profitable, but it will make a profit for you if you know how to invest. Therefore, save to carry on your investment offline!
3. Improve your life
If you're going to buy or upgrade your house, change a replacement car then save now so you do not need to worry about making money later. Who knows, during a period of time, the price of the house is down, it's a good opportunity that you should catch it.
4. Saving to give yourself a sense of peace of mind
Obviously, if you have money in person, you will always be more secure, right? Wherever you go, whatever you do, just having money in person will help you feel more confident. You have seen many people who are not high income but they are always comfortable, that is because they know how to save properly, spend reasonably.
5. Keep you entertained
Hard work to make money, it must also have time to relax and entertain. When you have the money saved in your hand, the choice of buying items or places to play on holidays like Halloween. You will have amazing holidays with cheap Halloween costumes, cheap accessories, handmade candy, and decorations but still full of meaning as long as keeping your budget in control. Besides, you can reward yourself for more comfortable travel.
6. When you get a raise, don't increase your spending
Many people seem to feel the need to increase their spending as their wages rise. However, a luxurious lifestyle will endanger your thrifty behavior. Think of your salary increase as an easy way to speed up savings. Live modestly and transfer any extra income, whether it's from a raise or an outside contract directly to your savings account.
Many financial advisers think that saving 10% to 15% of your income is enough no matter what tax bracket you're in, but some personal economists advocate saving up to half your income. if you can. A more radical approach to saving is to think about retiring early or at least achieving your savings goal in the shortest time. Enjoy the simple life and expect the rewards from disciplined money-saving thinking.
7. Separate needs from wants
One way many people suffer is when they spend a lot of money on wishes instead of needs. These two things can be confusing, especially when you really want something. You can become overwhelmed by the desire to have something you can convince yourself, that is really a need and not a wish.
If you want to prevent this from happening, take a few days' breaks to think about it if you're not sure it's a need or a desire. This time will help you think more carefully whether it is just a desire or a need.
8. Create a vision board
Do you have trouble believing that you can really save the money you are hoping to save? It's easier to achieve financial goals if you can find yourself accomplishing it. To do this is to create a financial vision board. This involves cropping images with different financial goals you desire to achieve. Photos can be from your favorite magazines, newspapers, or even photos you've printed from the internet. If you'll be able to see your goal, you'll be able to achieve it.
9. Track your progress
Don't be too comfortable after reaching a big milestone. Once you've saved a certain amount of money, it's easy to go back to your old wasteful spending habits. Keep an eye on how you're doing with your new money goals. One trick is to chart the money goals you have achieved. Every time you achieve a goal, mark it on your chart, so you can see how far you have gone. This will keep you motivated to continue saving money.
10. Continue educating yourself
Keep learning as much as you can about how to manage your finances. If you want to succeed in money, it's important to keep updating your new financial information every day. Choose a personal finance book, go to money seminars, and read a blog about how to manage your money. The more you learn about money and how it works, the more you will commit to maximizing savings.
11. Celebrating success
Keep moving forward by patting your back in encouragement when you reach your goals. Every time you reach a milestone, celebrate. Reward yourself by watching an episode of your favorite TV show or allowing yourself to enjoy an extra favorite food. Note, look for ways to celebrate without spending much.
Keep moving forward by patting your back in encouragement when you reach your goals. Every time you reach a milestone, celebrate. Reward yourself by watching an episode of your favorite TV show or allowing yourself to enjoy a favorite food item. Note, look for ways to celebrate without spending a lot of money. Do not celebrate so much that you are indebted.
