You just got done with college, and have started out on your very first job. The economic freedom you experience can rarely be doubted, and more importantly the feeling of being independent can never be matched by anything else. But, it is not long before most of us get carried away with our innate habit of splurging our earnings just because it’s ours. As a matter of fact, that is precisely why you must protect your savings. Wondering why? Well, your financial status affects not only your day to day life, but has a significant impact on your future, as well as of those around you. With the recent economic fluctuations happening all around the world, you would be wise to start saving the moment you start earning.
Here is some easy money saving tips:
1) Self Control: don’t give in to spending urges; there will always be attractive offers and things on display. Draw a line between what’s essential and what’s not. Spend wisely, and you will automatically save money. It is easy to let go of money through your hands, whereas it’s never easy the other way round.
2) Take charge of your financial future: never get miffed by terms such as equity markets, investing in shares, mutual funds, insurance and so on. You don’t even need to know the financial know-how of all these. You will just need to be familiar with what each of it means to you and your finances. There are several self help guides available to help you with this, or you also have the option of seeking the advice of a financial expert.
3) Know where your money goes: The easiest thing you can do with money is to spend it. It is entirely up to you to choose to spend it wisely or not. Make sure you are aware of where, why and how much you spend. Review your expenditures periodically and try to eliminate those that can be avoided. In this era of technology, there are several apps available to help you with money management on a daily, weekly or a monthly basis.
4) Have your own emergency fund: apart from the monthly installments you pay, or the investments you make, always set aside a portion of your monthly income for an emergency fund. Don’t let your expenses get in the way of this money. The longer you keep up this habit, the money you save is can be used for purposes rather than just emergency.
5) Understand how taxes work: trying to get a grip on the tax calculations every month can be overwhelming at first. But, understanding how this works will definitely help in managing your money better.
6) Save for retirement: Even if you are far away from your retirement age, it is a wise thing to start saving right now. Although this is usually done automatically at the time of salary credit. Saving from now will definitely help you cope with no income when you retire.
These are simple enough steps to implement in our lives. It is unfortunate that nobody is ever taught how to manage their money in high school. Things suddenly change once you start earning, yet most of us happen to still be clueless when it comes to our financial lives. As long as you follow some of these simple tips, you should be well on your way to wealth.
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