20s is often the time in our lives when we are busy finding the right career, the right partner and the right place to live. What do we often forget to do? Save.
Your friends from college decide to catch-up at this new place that has opened nearby. You decide to meet them up for drinks and don’t look twice at the rates on the menu. At the end of the day, you return home with a happy heart and an empty pocket. Sounds familiar?
Everyone in their twenties needs this advice – even though it is unsolicited, everyone needs to do this.
1. Save first, spend later:
Let’s say you earn 10k in a month. You have decided to save 20% of your income, firmly. But at the end of the month, you have nothing left. What do you do? Save first, and spend only what remains. Think that your income was 20% less.
2. Do way with credit cards:
Most of the youth is a spend-thrift. And credit cards will just add to your burden. Do it the other way around. Spend only that much which is in your wallet at this very moment. Don’t go for the credit game. Do way with those cards! Debit cards, keep your expenses in check.
3. Grow your money:
Invest. Your 20% savings will lie idle in your bank account when you can grow it by investing in various financial schemes like mutual funds, stocks, gold, ppf etc. Ask a financial advisor to formulate a plan for you if you find it hard doing it yourself.
4. Cut back on unnecessary socializing:
Choosing places to socialize that cut a hole in your pocket is not necessary. Company matters. If you must visit a place that is too hard to resist, make sure you have a budget. Watching the concert of a singer you hate is not needed simply because all your friends are going.
5. Set a weekly budget:
The best way to save money is by allowing yourself to spend in four parts – so that at the start of every week you have money and that way it will last for the entire month.
Sounds good? Share it with your friends who need some advice on managing their money as well.