There are a number of young professionals who earn some money, but fail to save any. If you are one of them, here are some tips that will help you save money, while spending enough to satisfy your needs.
1. Make a chart: This chart should have three sections. Title them as; necessary, not-so-necessary, and not at all necessary. Now, classify your expenses in these three sections. Next, write an approximate amount you will need to shell out for these expenses.
With this chart handy, you can decide your priorities and, accordingly, leave out the ‘not at all necessary’ list for some time.
2. Credit card: ‘Well, I don’t need it. You can survive without it.’ Say this to yourself. Practice it daily and slowly get out of the credit card club. Why? This is because you tend to spend more than what you need with that little card in your hand. In, most of the cases, you spend it on the ‘not at all needed’ items. So, get out of this habit and at the end of the period, you will notice that you have saved a good amount of money. Another point here is that if you don’t make timely payments, you pay an additional amount in the form of interest, which is unnecessary.
3. Invest: Investing in retirement plans and other related plans; you will save a decent amount for the future. Doing this, you are building wealth without shelling out too much at regular intervals. This is the biggest advantage of investing in such plans. So, look out for suitable plans and start investing. Example: If you invest $200 every month from your paycheck at the age of 25, then by the time you are 65, you will have $525,000 approximately in hand.
4. Know the worth: If you want something, check whether it is worth buying it. If you have a job that pays you $25 per hour, and you want an item that’s valued at $900, buy it only if you think you cannot live without it. If you can have a comfortable time without it, postpone the purchase. This is suggested because you have to pay tax, and if you are married, there are additional responsibilities on your shoulders.
5. Your partner: Choose a life partner who is understanding and is even one who believes in savings. It cannot be like you save money and your partner breaks the rule. This will defeat your purpose of saving money. If you are already married or even committed, talk to your partner and let him/ her support you to achieve this purpose.
6. Prepare yourself for any possible contingencies that might be coming your way: A small part of your income should be kept for contingencies. This will help you cope up with the difficult times and will give you time to get back on track. There have been cases during recession that people have lost their jobs and they had no reserve amount. Result – whatever it may be, it wasn’t a happy ending. So, keep some reserve amount so that you don’t regret your decision later on.
7. At one go: If you want to shop for your daily needs, do it on a weekly or monthly basis. This will help you shop for a number of items at a time and bulk purchases are often cheaper as compared to purchasing items one at a time. In addition, visit chameleonjohn.com and get discount coupons to get an additional discount on your purchases.
8. Try finding happiness in the non-monetary assets: People often make this mistake by ignoring the real happiness and instead run behind money only. Money is important, but without the non-monetary assets, money makes no real sense. If you stay with your parents or you have a nuclear family, spend time with them. It is said that loving someone helps in pushing the need of monetary assets out of your mind. Try it!
9. Know your taxes: It is important to know about taxes. If you don’t understand how income taxes work, you can goof up your plan. This is because, at the end of the year, you have net income in hand, which is after deduction of income tax. So, planning your need according to your gross income will leave you with little or no savings in your hand. So, it is important that you understand how income tax works and plan for a saving scheme according to your net income.
10. Do it on your own: Manage yourself and your finances. Don’t ask others to help you with it. Others can help you mismanage your funds by suggesting you unnecessary options that might not work in your favor. So, manage your funds on your own. Note: Here the focus is on managing own funds. If there are any doubts,
11. Sale: For your needs, stores have come up with the idea of a ‘sale’. Use this opportunity to buy the extras for extra-comfort. Popular online stores like Nordstrom and Sigma Beauty provide items at a discounted price, and the quality assurance from their end is appreciable. Also, chameleonjohn.com offers discount coupons to help you get an additional discount on your purchases. So, using this, you can but the ‘not so necessary’ and ‘not at all necessary’
items too and still have a good amount in your savings account.
12. Complete Graduation: Technically, this should be the first point, but most of the professionals today make sure that they have a degree to earn more and save more. With the noted suggestions, we can summarize the facts in a couple of sentences. If you learn self-control, you will be able to take control of your finances and save enough
money to have a good life post-retirement. However, you need to make full use of the opportunities that come your way and ask for help when needed. The idea is to save while you are still earning.
Mature Tips For The Amateur Professionals
November 21, 2014 by · Leave a Comment