money-problems

Rod Gabriel | YoManila.com

Saving money is easier said than done. This is true to young millennials, who are just newbies at work, and working for at least 40 hours a week, on minimum pay scale.

If you’re living independently, chances are you will now feel saddened by the fact that you have to pay rent, utilities, Internet, cable, groceries, and all other expenses that you have to fend by yourself.

When everything has been paid, you might now look forward to the next payday as what was once an exciting paycheck now becomes a major budgeting challenge.

Everyone’s experienced this. This might not be the greatest feeling in the world, but as far as millenials know, there has got to be a better way out of this rut.

There is no such thing as impossibility in saving money. There are a lot of ways to save, no matter how much you earn or how many bills you have to pay every month. Age is not a hindrance in savings. When saving money, there should be the desire and the will to save.

With all that being said, here are seven money saving tips every millennial should use to start getting into the habit of saving money.

  1. Keep track of your finances. If you haven’t been maintaning a record of your expenses, you will never know your capacity to save. It is very important to create a budget. There are a lot of ways to do this.  If you wish to use technology to your advantage, look for apps or use a spreadsheet application. For non-tekkies, a piece of paper and a pen will do. List how much you are making, how much you are spending and what you spend on. Spending is scary. It pays to know how much you are worth on a day to day basis. The more aware of how much you have, the less likely you are to overspend.
  2. Don’t Be Too Much of a ‘YES’ person.   We all need to learn to become financially responsible. Going out too often with friends on a food and drinking spree, is a lot of money down the drain. It is okay to say ‘NO’ once in a while. Although there is such a thing as “Fear of Missing Out.”, being able to say no to a gimik invitation, will definitely save you from the pain of losing too much money. Consider other options like Late Night Movies at home.
  3. Beware of Money Traps.  Avoid money traps like impulse buying. Being on top of the latest trends in fashion and technology might become a financial nightmare for you. Know your money weaknesses, develop ways on how you can manage the so-called money traps. When someone tells you, “Open-minded ka ba?” (Are you open-minded?) Be on your toes. This phrase has been widely used several times, and a lot of people fell prey on this trap, thinking that there is hope in earning more money out of this get rich quick scheme. Although, I don’t really mind you being open-minded. You also need to think straight and be logical at times.
  4. Save Money The Traditional Way. Don’t save money on a bank that has access to an ATM machine. ATM machine access is like wallet access. It’s just like a high tech wallet that is always available in common places. Save money in a passbook account. That way you’ll be dismayed by constantly lining up in frequent long bank queues, waiting for your turn to get your money. You may also put it in long term investments. Consider mutual funds.
  5. Set Money Goals. An effective way of saving money is to set clear, concise, realistic goals because they give you a compelling reason not to buy on a whim. Putting you’re eyes on the prize, can make you feel good about yourself when saving. Create small, short-term achievable and time-bound goals for yourself.
  6. Think About Retirement. Too long as it may seem, it’s never too early to start investing in a retirement fund. Consider approaching financial advisors. Don’t run away from them. They could be of help. Retirement funds seem to be too much when you look at it from the beginner’s perspective, but when you hit mid-life, that is where you start panicking.

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