SAVING money is one of the hardest responsibilities that an individual should attend to. The moment you receive your money after days of work, there are a lot of temptations and distractions like payday discounts, bills to pay, and unplanned getaways. It becomes easy to say yes to these with cold cash in your hands.
According to an article published by goodcall.com titled The Millennial Mindset on Debt, Saving, Budgeting and Banking, 90 percent of millennials think it is important to regularly set aside money for savings. 43 percent of that segment do not use a budget to manage spending and savings, and 37 percent of that segment do not regularly set aside money for savings. This is a clear indication that saving money is understood but not put into practice. In order to address this, here are effective money-saving tips that you can use with your finances.
Record your expenses. It is important to keep a record of all your expenses to monitor the movement of your expenditures. It is also an effective strategy to identify what living expenses eat up your budget most. By doing this, you can adjust your allowance on a specific group of living expenses.
Create a budget. Budgeting allows you to live comfortably with a targeted amount that you could only spend within a span of time. This could prevent you from unplanned purchases, spontaneous trips, and impulse-buying because you know the exact amounts on how much you can spend within your means. In the article 4 Steps to Take Control of Your Wallet by MoneyMax.ph, they suggested that you can take advantage of free activities you can enjoy to avoid spending a lot on leisure.
Make money-saving more fun. Saving money is a challenging responsibility and not as fun as we want it to be. Another efficient solution is getting the help of technology. There are apps that can help you manage your finances. Some of the apps that you may download on the App Store and Google Play are Personal Capital (links all your financial accounts in one place and will help you understand cash flows and optimize your investments), Mint (helps you track all bank, credit card, loan, and investment accounts activity and sends alerts for overdue bills or when account balances drop), LearnVest (gives you access to many relevant articles that can help you to successfully manage your finances), and Level Money (monitors how much available cash you’ve got for the day, the week, and the entire month).
Decide on your priorities. Knowing your priorities will help you define the important and urgent things that you need to attend to first. This will prevent you from spending your money on unimportant matters.
Try different saving and investment strategies for different goals. Sometimes, it is not enough that you just save and save and let your money sleep. Invest your savings as early as today. Look for the strategy that you think will work best for you and keep an eye on your improvement.
As millennials struggle in transitioning into the real world of personal finance, these hacks would definitely help you in saving money easy.
Kim Lato is the founder and CEO of Kimstore. She is one of the pioneers in the local e-commerce industry, a GoNegosyo awardee, and is hailed as a Boss of e-Commerce at Rappler’s #BeTheBoss Awards. Kimstore is one of the leading online gadget stores in the Philippines, selling brand-new and original gadgets at their best price.