They will teach you many things in school, but how to deal with money and try to save it while also trying to pay off debts and buy a home is something that is considered part of “adulting”. Figure it out somehow on your own while making numerous mistakes along the way, wishing somebody would’ve told you a straightforward solution before you got into this mess.
Saving money is something many people consider around their thirties when they realize they will need to have something that will be there and that will build up as they get older. We live in a time where we are not specific in what kind of a world we will live when we’re old and if pension will even be enough. That is why some money hacks are always welcome. These are more facts that come in handy in the long run. Let’s begin:
1.Working smarter (not harder)
This is one of many misconceptions people have, whether they are young or old. Working harder doesn’t necessarily mean you will save more money. Most probably, you will get burnout, and you will not be capable of working for a couple of months, once you reach that point. To save money effectively, it means setting priorities and even delegating if you can afford it. It can sound like you are a bit spoiled, but that is another truth about saving money AND time, people are not telling you. Many of us try to do everything by ourselves, even things that are not within our range. This is how we end up losing time and missing deadlines. That’s why you should recognize when it’s time to reach out and find someone who will make your life easier.
2. Try having a “spending diary” for a month.
If you are wondering where did your money go as the end of the month approaches, you should try having a financial diary (or download an app), for at least two weeks. You will quickly spot patterns like buying that fancy 15 dollar coffee, just because it’s nearby. Maybe you’re spending too much money on takeout, even when you have time to cook. What is your weak spot? It is nice to have something to look forward to every day, but reconsider your options, especially if you want to save. People are often focused on big things such as bills, instead of taking into account small items they are purchasing.
3. Saving and investing starts NOW
People don’t realize that the sooner they start saving money (even if it’s pocket money, really), their savings will naturally be more significant. It sounds logical, but no, many of us, as we said at the beginning will start saving when we are around thirty, thinking about starting a family or maybe buying a car. Until then, we are hustling and mostly living rent to rent. If that’s the case, advice number two is something you should consider, and then get onto it. Detangle the knowledge you made out of your spending habits so that you can be at ease with yourself. Another interesting fact is that if you start putting away your money at 20, you will have also doubled the amount by the time you are 55, then if you created when you were 30—just saying! That doesn’t mean you should give up on saving money if you are older, or around 30, but you can see how much we don’t know about savings at all.
4. Be informed and ready to learn.
There is always something you can tweak along the way, whether you share your spendings or you are all by yourself. Also, learning about money management is highly essential, whether it be through courses or books, by a separate notebook that will serve you only for taking notes about what you’ve learned, writing down your expenses and what to save for. It’s more likely to achieve your savings goals if you write them down. Remember, even if it feels like a drag to not buy your favourite coffee every single day, you will be happy to make one when you get home. Or maybe the coffee will be more delicious because you decided to buy it every other day. Perhaps you will finally try out your cooking skills. Or you will learn that every person needs help when it comes to working to deliver properly. Whatever the case is, you will figure it out by following our advice, and then you can be able to start money management. Good luck!