The Struggle is Real
Managing finances can be difficult for people of any age, especially if you’re a young adult who is just starting out. Several factors might contribute to your struggle to achieve financial wellness.
Let’s face it - the world around us is making it more difficult to save. Technological advances have facilitated online purchases, and things can be bought easily with only a few clicks. Moreover, online shopping can become compulsive and addictive. It can be challenging to keep track of expenses. Social media is another culprit. It lures you through targeted advertising and brings you posts of people flaunting attractive products and accessories. These can be tough to resist when the purchase is just a click away. Additionally, meeting friends socially often means eating and drinking outside, and this too, can weigh heavy on your pocket if you’re a social person.
Here are some helpful tips to help you plan your finances without compromising your quality of life. Start early - Good habits start early, and that rings true for good saving habits too. In fact, keeping track of your budget is easier when you have less. So, the best way to save money is to start early and make it a part of your lifestyle.
How Important is it For You to Save?
To begin your journey towards financial wellness, ask yourself two essential questions. First, why do you want to save? There could be any number of reasons - you might have personal goals you're working toward, like financial independence, or to supplement the family income or to support ageing parents. Some of you may want to fulfil personal desires like buying a particular watch or handbag. These are personal goals tied closely to your purpose and values. So, reminding yourself of these reasons can be a powerful incentive to plan a budget early in life.
The second question is, why is it essential that you save now, as opposed to, say, next year or later? After all, if you are young and have just started working, you may be excited to spend money on yourself. You may want to travel, treat yourself to some new experiences, or spend money on self-care. It’s satisfying to spend money that you’ve earned through hard work, and it’s also part of the fun of earning. So don’t feel guilty about having fun.
At the same time, having small saving goals can be a great motivator. So, think about when in the future you would like to start saving and how much you will want to start with. Having these small goals can help you get started.
Spend Less, Save More
These are some save-money tips to help you plan a practical budget. On a piece of paper, write down the maximum or the ideal amount you want to save every month. Then, think of the minimum you must save each month, and finally find an in-between figure that feels right and which is not too hard to achieve, and try to keep that as a near term goal.
Keeping track of expenses is another crucial aspect to budgeting wisely. In a notebook, make four columns and label them as essential expenses, indulgence expenses, investment, and savings. List expenses, such as rent, food, or transportation, under essential expenses. Then fill in your indulgence column - it could include money spent on food and drink with friends, personal shopping and others. You may find some expenditures like gym memberships or yoga classes could actually go into the investment column. Physical exercise, after all, is essential for self-development and mental well-being. Look at these expenses as an investment rather than an expenditure because they are necessary for your growth, and remember that investments are a form of savings too. Then, fill out the savings column - which could be the amount you actually set aside for a rainy day. When you revisit this list, you will begin to see which part of the indulgence column you can cut down, and then you can gradually think of migrating those expenses to the savings column.
Practical Tips on Your Fingertips
Here are additional money-saving hacks to help you save money and budget wisely.
1. Once you've decided on how much you want to save, put it in a separate savings or investment account as soon as your salary is credited. This way, you are less likely to dip into your savings for impulse buys.
2. Limit online shopping. See what feels right to you. Either keep online shopping only for groceries, paper towels, etc. or limit it to twice a week. This way, you are forced to make your list and have it ready before you order, so you don’t give in to impulse buys when you go online.
3. Give yourself a monthly budget for online clothes shopping, and stick to it. Another method is to plan online shopping for certain times in the week - similar to what shopping used to look like before online shopping became a thing. That way, you don’t get distracted with popups online. Also, when social media lures you to an exciting clothing site, instead of getting distracted and giving in to temptation shopping there, click a photo and save it for the time you have set aside. This will minimise impulse buys and still allow you to trawl sites you are drawn to.
4. Review subscriptions at the beginning of every month and unsubscribe from marketing emails.
5. Another hack is to pay for snacks, coffee, and smaller impulse buys in cash rather than by card. This will help you keep track of the small expenses, too; after all, they do mount up.
6. Some great apps that help you stay on track are Spending Tracker, My Budgets, and Moneyfy: Money Tracker for iOS, MyMoney-Track Expenses & Budget, and Money Tracker-Expense & Budget for Android. (Full disclosure: I don’t get any commission from any of these apps. These recommendations are based purely on recommendations and reviews of friends and netizens.)
7. Create no-spend days or zero-spend weekends for yourself. Challenge yourself to take advantage of free events and other freebies your city has to offer. In Singapore, for instance, there are free concerts at the Botanic Garden, light-up shows near the Padang, and others. Make it a fun outing with family and friends with a packed picnic lunch to minimise spending.
8. You can also plan out bulky expenditures around sale periods. Summer sales in Singapore are a great time to buy big-ticket items. You can also cash in on your birthday deals and keep some purchases for your birthday month when you get as much as 20% discounts on stores where you’re a member.
9. Take advantage of discounts on entertainment. Cinemas are cheaper on weekdays than on weekends. Student and senior discounts also apply. You can also go early for an evening of drinks with friends and take advantage of happy hour pricing rather than pay full price.
10. Make your own cuppa; these days recycling and carrying your own mug is trending. Carry your homemade brew rather than a Starbucks or commercial brew.
11. Finally, invite your friends home for a potluck meal, rather than meeting outside. It’ll be more intimate and you can party for as long as you like!
There are so many ways to save money, and every little step in the right direction keeps you moving closer to your goal. Remember, no step is too small! Keep this life coaching advice in mind as you advance towards achieving financial wellness, and you will find success.
Comments