24 May How to save money when you are young? 5 tips how to make it a habit!
When you are young, saving money seems like an impossible challenge. During the young age, it is easier to see your salary as a way to reach the end of the month and not as a way to save and be prepared for the future. However, by putting aside small amounts of money each month, saving can come back to your advantage and make a difference. We have put together a list of 5 tips for young people on the art of saving, to help them embark on a successful financial journey!
Five ways to save money at a young age:
1. Keep track of your monthly expenses!
Of course, this is one of the most common tips anyone can give you, yet it remains one of the most valuable. Keeping a budget does not mean to give up the fun in your life. By organizing your budget, you are able to monitor where your money is going each month. You have the opportunity to organize money smarter, for savings, bill payments and entertainment. There are many ways to maintain your personal budget. Some prefer to use applications, some others keep notes manually, where they set all the monthly expenses and monitor the progress of the expenses month by month. Whichever way you prefer, budgeting tells how much you can afford to save, even in very small amounts, even though it may seem impossible.
2. Do not wait until you have a higher salary!
Saving and investing may seem like a challenge now, but putting aside a small amount of money every day/week/month can have a big impact. Use your budget to see how much savings you can put in your account. For example: if you want to achieve a goal 5 years later, investing in the “Credins Premium” investment fund may be the right alternative for you. You can start with the minimum amount of 2,000 Lekë per month, by investing periodically for the future.
3. With a little organization you can save 1/3 of your income!
If you work and generate income, but you are not sure how much money you want to save, we recommend that you put aside one-third of your income. By saving 100 Lekë for every 300 Lekë you earn, in the future it is easier for you to overcome financial challenges, such as a job loss, health emergencies, car repair or unexpected expenses.
4. Start an emergency fund!
Another good way to save, is to create a fund that will only be affected in emergencies, so you are never without money when you need it more.
5. Repay debts gradually!
If now, saving seems something impossible due to debts, then conditions must be created for their repayment. Passing all the attention to debt repayment, helps you later to have the opportunity to start saving, as the habit of gradually putting aside money has been established.
These are just some of the tips that can help keep personal finances under control and improve your finances, if you start to implement them. It all starts with creating a healthy habit, which is good for the future finances.