Saving money is something that people struggle with when they starting out of college. It is easy to get immersed in the money you earn, and then having the right to spend it without being answerable to anyone. But, one bad thing about being an adult yourself is that you might not be answerable to anyone, but you are accountable for your own life.
There’s no safety net of your family to fall back in, that is if you don’t have parents ultra-rich you would financially support you all your life. It is up to you now to save money for yourself and your future family. You can’t start the next phase of your life while struggling. Money and struggles are one of the few reasons couples break up. Settling a bet in your career before you settle in your life is always a smart idea.
You don’t need to make big decisions right away, you can start out small. Involve these things in your life, and when you start getting used to it, start investing.
A common mistake people make is that they develop a budget based off of their gross income or salary. It’s important that you develop a budget using your net income because it is a proper representation of the money you take home after taxes and deductions. Do you know why it is a mistake? Because you’re budgeting money that you never are going to have.
Your savings is the difference between your net income and your expenses. Some questions to ask yourself when starting out, and some things to take into account are- are there any expenses that you can reduce or eliminate? Or is there anything you spend on that you can do without and apply it towards your savings?
Once you have answered the questions, here are some quick tips for saving money.
- Save the windfall income: Any unexpected money that is not a part of your regular income like income tax return money, or a one time contract, should be put into savings.
- Live like a frugal: You might have watched the show on TLC, but we do not suggest going to the extent they go, but a tiny something can help you. Purchase cheaper, off-brand items that are good and get the work done instead of the expensive one you buy and save money.
- Reduce the times you eat out: Eating out is expensive. Because you feel like you can afford to spend on lunch outside every day because you earn, doesn’t mean you really can. It might not seem like a very big amount every day, but at the end of the month it adds up. Cook your meals, bring your own lunch to the office. You will save quite a bit.
- Take on challenges like, “no spend week.”: Taking such challenges, give you a sense of doing something actively and aren’t hard to follow either.
- Save your spare change: Save all your spare change in a piggy bank, and when it is full, deposit it in your bank. You won’t even notice it missing from your wallet, but you will have a significant amount saved.