Most people nowadays, especially the younger generations are using the millennial term “YOLO” which means “You Only Live Once”. It simply means that you should live your life to the fullest and enjoy every minute of it. This is a good philosophy but it should still be in moderation. However, some people took it to the extreme and only living their lives for the present. It seems like they forgot to prepare for their futures.
Most younger generations these days simply focus on getting the things that they want and doing what they like. They are so focused on buying the latest gadgets, game consoles, clothes, shoes, or traveling to different places that they forgot to save for their future. They didn’t save money to have their own home, build their own family, prepare to have their own children, and havestress-free retirement days.
But it’s still not too late to start saving for your future. For people who are not used with saving, starting will be the hardest part. However, it will be easier once it becomes a habit. Here are some tips that you can do to save money:
- Record your expenses
To know how much money you spend monthly, you need to list down all of your expenses. Aside from your monthly bills, it should also include your groceries, snack, coffee, shopping, and everything else that you pay for.
- Needs versus wants
After listing your expenses, you have to prioritize the things that you actually need in your daily life. Note the expenses that you actually need to pay for like your food, fare, rent, electricity, water, internet, and phone services. Remove the luxury items in your “To Buy” list like new clothes, shoes, or phone since you still have these things.
- Set saving goals
From time to time, it is not bad to reward yourself but you also need to save for it and not impulsively spend your money. However, you need to set aside an emergency fund first before anything else. Then, you can save up for a new car, phone, or vacation trip.
- Savings accounts and investments
There are several kinds of savings that you can choose from: regular savings account, money market, certificate of deposit, and automatic savings plan. Savings is best for your short-term goals. However, if you are planning for the future as for your retirement, the best option will be aninvestmentin stocks and mutual funds.