At a young age, we usually do not think much about how to handle our finances. As young adults, most of us want to buy anything we could think of — new phone or gadgets, clothing, bags, and a lot more. As long as we were able to survive for a certain period of time, we just continue spending. After all, the reason why we earn is to spend, right?
However, we should keep in mind that as we spend, we should still limit ourselves from buying things we do not need that much.
I would like to share some tips on how you can manage your hard – earned money effectively and efficiently.
- Know how much you are earning and make sure that you have your daily, weekly, or monthly budget. Creating such will let you track your expenses for a certain period of time. Moreover, you could get a glimpse of how much is only intended for a specific thing.
- Know all your bills and the deadline for each. As we grow up, we became more aware on the dues we need to pay. Making sure you’ll pay on time will lessen possible interest and hassle on your side. Setting some reminders on your phone will help a lot to ensure that you’ll be paying just on time.
- Avoid buying things you don’t actually need and know your limit. Try to prioritize the things which are really necessary. Buying a new phone while you still have one is an example. It is not bad to treat yourself sometimes, but do not exceed your limit.
- Make sure to keep some percentage of your income as savings. Usually, most people used to keep 20% of their monthly income. This will of course depend on you, if you would want to keep more, much better. Just keep in mind that you should separate this 20% first before allotting money for your expenses.
- Try to build your emergency fund. You can use this money in case you encountered an unwanted incident.
- Another great recommendation is to invest. Investing at an early age is really beneficial. You got yourself insured and the same time, your investment gains profit.
Hope you got some ideas from this post. You can share this as well with someone you know.
If you have any questions or thoughts, leave your comments below! 🙂
If you are a traveler, you might want to check below for travel bookings! 🙂