Upon graduating from college, millennials fall into the trap of having to keep up with a demanding lifestyle, with an entry-level salary from their first job. It’s all fun and games until you realize that your savings are basically zilch. What’s a young adult to do? Here are easy tips to save money for the long term.
4. A little (saving) goes a long way. Many millennials are daunted by the task of saving, because they treat it like a means to an end, like buying a new bag or saving up for a new trip. Say, the average monthly income of a fresh graduate is P20,000 — compounded with the expenses for rent, transportation, and food expenses included, they feel too little is left to save money in such a short time. Saving should be done with a long-term mindset, and done habitually. Saving P200 a day goes a long way — do it for thirty days straight and you’ve already saved P6,000. Do it every day for the rest of the year and you would have earned P72,000!
3. Allow yourself a monthly “indulgence” budget.
Saving doesn’t have to mean repressing yourself. Allow yourself a limited amount to spend on indulgences, whether it’s new makeup or clothes, or even eating out with friends. The rule is that your spending power increases when your salary does as well, so spend within your means.
2. Install a money-tracking app on your phone.
Having an app on your phone that tracks your spending habits is easier to maintain, because it’s just on your phone and a swipe away. Doing this daily can give you a better idea on how much you’re spending, and where to cut back on.
1. Learn to invest.
Don’t treat your bank account like a piggy bank where all of your money is at your disposal. Look into a time deposit and stow away some of your hard-earned money there. Not only will you save money, you’re also growing your money in the long run.
Thoughts on this? Got any more money-saving tips to share? Let us know!