Money Saving Tips for Young People.

Money Saving Tips for Young People.

I see young people around me doing parties, going for shopping & hangouts, restaurant and Coffey shops every day. But I also see most of them struggle with their finances at the end of the month.

If you are also facing the same issue, go ahead and read this article. There is something very interesting for you here.

Elders in your family will always tell you to save money. They will also give you some desi ideas. Sometimes even you will feel that you should save some money. But when it comes to implementing it practically, you cannot continue any of the practices more than a week or two, or may be for a month.

Before giving you any more ideas about saving money, I want you to understand why saving money is important for us.

Just because everybody ask us to do so?

No!

You need to save, because everything in your life comes with a price tag. Luxury, fun, enjoyment, attitude or anything you imagine. I am not telling you can buy these things with money. But you need money to enjoy the real taste of anything.

You don’t believe me?

Tell me, can you get an AC cab if you do not have money to pay for it? Can you enjoy a movie with your friends if you do not have money to buy tickets? Can you hangout with friends if you do not have money to buy food and drinks. Can you wear the right outfit which matches your attitude without money?

Directly or indirectly everything starts with money. Your income is one of the most precious things you have. 

Don’t waste it just like that.

But the next question comes in the mind that why it is required to save money when you are getting your salary regularly every month. Well I can give you a thousand reasons, but some of the basic reasons are listed below:

Girlfriend’s birthday every year and she is expecting something very special

* Your own birthday and your friends are expecting a party

* You need to buy a new mobile, bike or a car

* For medical emergency

* To gift something to your mom on her birthday or anniversary

* What if you lose your job, you will need money till the time you get one

The list you see above is called financial goals. Some of them are short term goals, some are midterm and some are long term. You require a professional planning to fulfill your midterm and long term financial goals. 

But the young generation is far away from the knowledge of financial planning, because the techniques our parents followed are outdated and not practical as per our lifestyle.

So friends, I will give you some easy ideas which can help you in your life in many ways.

Let’s talk about the first issue our young salaried face.

Empty pockets in the last week of the month:

This is the most common problem with almost everybody who is salaried. Our expenses fully depend on the salary we get on the first day of the month. As we do not have any other source of income, we do most of our fixed expenses in the first 10 days of the month. Then we use rest of the money in shopping, party, hangouts and other fun stuffs. Then after 20th day of the month, we start controlling our expenses. But it is very late to start.

Well I am not here to lecture you to stop partying and fun or to manage your expenses. I am here to guide you to save money without compromising the fun of life.

Is it possible?

Everything is possible friend, all you need is planning.

Here are some simple but effective ideas.

* On the very first day when you get the SMS that your salary has been credited into your bank account. Check your pockets if any money left from last month’s salary. Oh yes, you have few hundred bucks in your pocket. Don’t think twice just put them into the pockets of on your favourite denim which you don’t wear anymore. Frankly speaking I sometimes get emotional while throwing my old favourite denim. I prefer to keep them in the wardrobe even if don’t use them.

* Buy a piggy bank but not for coins. Make a habit that whenever you get a change of a 2000 or a 500 rupees note, put 200 or 100 rupees in that piggy bank. Whenever you come home with some money left in your pocket, put half of the money into that piggy bank. Do not take the money out from there till the time you have money left in your salary account.

* Put a coin box on your table. Just put the coins left in your pocket into that coin box every evening.

* Do not use your credit card for buying clothes, food and drinks. Credit cards are very important and useful thing you have. Try to use it smartly. Use your credit cards only when you want to buy something which is not in your cash budget. If you need to buy something like that, use your credit card and ask for an EMI offer. But please avoid using your credit card for buying anything that you can buy using cash.

Try these simple methods in your daily life and you will find one day that you have saved so much money in a month that can actually cover your two week expenses.

Now let’s see what we can do for our short term goals. You remember I had discussed about birthday parties and gifts. Yes these are short term goals that you can plan at least few months in advance. Read and understand it carefully because it is something that can change your life.

The best way of saving money for salaried person is systematic investments. Systematic investment means investing or saving same amount of money every time you get paid. For salaried people you can say same amount of investment every month.

There are many options available in market for systematic investments like Mutual Funds, Recurring deposits, saving bank account. But the problem is to decide which is good for you.

Recurring deposits and savings bank account are best option for short term goals. You can save same amount of the money every month as recurring deposit. This option is available online with most of the banks. Check your bank’s online portal to check. You can also use a separate savings bank account for saving a fixed amount of money every month.

Make sure, you do not touch it as it is there for a particular purpose.

Now let’s talk about your mid-term and long term goals. Mid-term goals can be categorized as something which you can plan at least an year in advance. But long term goals require few years of planning and lot’s of patience to fulfill.

Again there are many investment options available for your mid-term and long term goals.

* Mutual Funds – Mid and Long term

* Fixed Deposits - Mid and Long term

* Equity Shares - Long term

* Life Insurance Policies - Long term

* Savings Bonds – Long Term

Again it is confusing for you to decide which option to go for. Choosing the right option depends on your age, income and your risk appetite.

I would suggest you to first consult a financial adviser and discuss your financial goals. After a proper financial planning you can create an investment bucket and add up different financial tools time to time.

Do you know who Warren Buffett is?

He is a man who started his life by selling newspapers and right now he is one of the wealthiest person in the world. He did not make money by big business, or he did not create a big company. What all he did was he saved money and invested.

Saving and investment are technically two different things. Saving means save something out of your income. 

Investment means to make money out of money.

Please be in touch with any financial adviser you know and start saving or investing. Do not think twice about it. 

Thank you.

Disclaimer: Insurance is the subject matter of solicitation. Mutual Funds investment are subject to market risks. Please read the offer documents carefully before investing. 

For all your financial needs, call Mr Sanjeev Chawla +91-9810582989.