Start Saving Early With These Tips
When you are in your 20s, you are faced with a lot of challenges. One of them is making decisions about your future through the financial plans you have right now. It is a known fact that during these years you need to consider the amount of money you need to save for emergencies and, if you are planning marriage, your future family. You also need to think about the home and the car that you want to buy, as well as other living expenses. Here are a few tips for saving money for 20-somethings.
Educate yourself- Those who are in their 20s may or may not know anything about personal finances. When you do not know much, it is time to educate yourself. To do this, you might choose to attend events, seminars, and training about money matters like personal finances and investments. You may even talk with professionals about your future investing plans. Some schools and colleges offer such events as part of the curriculum and you really should take advantage of it.
Think of yourself as poor- One of the money saving tips for 20-somethings is to think of yourself as having no money at all. It sounds crazy, but it is a tested method of saving. For instance, if your friends ask you to go with them to see the latest blockbuster movie, you just tell them that you do not have the funds for it. It is simple and it really does work. All you need is a little willpower to stick to your savings plan instead of giving in to what your friends want.
Use cash instead of credit cards- When you use cash to buy goods or other commodities, you are the one in control. When your cash runs out, you simply have no more money to spend on anything. This gives you complete control over what you purchase and how much you pay. This mindset is very different from the potential loss of control when using a credit card. When you have that plastic in your wallet, chances are you should swipe that credit or debit card until you reached you credit limit, or ran out of money without giving a lot of thought to what you are buying! You should quickly learn the consequences of your actions when the bill arrives. You do not want to incur a lot of debt just to collect a lot of things you do not remember buying in an afternoon of shopping. This does not just hurt your wallet, but it could have an effect on your credit report.
Before you buy anything with a credit card, it would be a good idea to perform a credit check on yourself. Simply contact the three major credit reporting agencies in the U.S.-TransUnion, Equifax, and Experian-and request your report and credit score. You are entitled to a free copy of your report once a year from each company. Your report will show see exactly who you owe, the beginning and current balances, credit limits, and your payment history. If you find errors, contact the credit agency in writing to correct the discrepancies.
Use coupons- When it comes to deciding whether to use discounts and other promotions, the answer is a resounding yes! This is a great way to save money on goods and services you use. You can find coupons through online shopping sites, in the pages of magazines, or through the shopping centers themselves. Your local newspaper may even have a weekly section or insert of nothing but coupons! There are stores that mail coupons to you on a regular basis, as well. You can save quite a bit of money when using coupons, anywhere from 10 to 50 percent or more! Never use a coupon to purchase something just for the sake of using a coupon. If it is not an item you should normally use or need, then leave it in the store. The bottom line is coupons can help you get great deals and discounts for goods and commodities.
Reward yourself- When you know that you have ample money saved, reward yourself from time to time. You can treat your family to dinner or lunch, go on a trip, or do something simple, like buy a couple of books for home reading. Be careful though, as you should do this only once in a while. Do not spend on rewards every day as you should soon find yourself back at square one-looking for more money.
Discipline yourself for overspending- When you find you are spending more money than you should, it is time for a little self discipline. That means stop spending and look for ways to save. You can cut off your cable television or you can limit your food spending for a couple of weeks, until you are back on track. Be sure to put back whatever you have taken out of your saving account. For example if you wasted $30 on unnecessary items, work a little overtime and earn $30 to put back into your savings account.
Create your budget- This is one of the most important money saving tips for 20-somethings. Actually, it is one of the first things you should do. The first thing to do is to list all of your expenses (water, utilities, gas, transportation, loans, credit cards, and do not forget to include leisure and pleasure expenses). When that is finished, then write down all of your income. If your income is higher than your expenses-good for you! The difference between the two numbers is how much you have available to save each month. On the other hand, if your expenses are higher than your income, you need to do a little work. It is time to figure out where to cut your costs, or how to earn some extra money to cover your expenses.
Don not often eat out- Avoid eating out. Instead, prepare your meals at home and keep snacks on hand to reduce costs and expenses. You can spend a lot of money in restaurants. In some high-end restaurants, you can spend as much on one meal as it would cost for an entire weeks worth of food!
No matter which money saving tips you use, the important thing is to make sure it is something you can live with. This will help make it much easier to stick with in the long term.
Educate yourself- Those who are in their 20s may or may not know anything about personal finances. When you do not know much, it is time to educate yourself. To do this, you might choose to attend events, seminars, and training about money matters like personal finances and investments. You may even talk with professionals about your future investing plans. Some schools and colleges offer such events as part of the curriculum and you really should take advantage of it.
Think of yourself as poor- One of the money saving tips for 20-somethings is to think of yourself as having no money at all. It sounds crazy, but it is a tested method of saving. For instance, if your friends ask you to go with them to see the latest blockbuster movie, you just tell them that you do not have the funds for it. It is simple and it really does work. All you need is a little willpower to stick to your savings plan instead of giving in to what your friends want.
Use cash instead of credit cards- When you use cash to buy goods or other commodities, you are the one in control. When your cash runs out, you simply have no more money to spend on anything. This gives you complete control over what you purchase and how much you pay. This mindset is very different from the potential loss of control when using a credit card. When you have that plastic in your wallet, chances are you should swipe that credit or debit card until you reached you credit limit, or ran out of money without giving a lot of thought to what you are buying! You should quickly learn the consequences of your actions when the bill arrives. You do not want to incur a lot of debt just to collect a lot of things you do not remember buying in an afternoon of shopping. This does not just hurt your wallet, but it could have an effect on your credit report.
Before you buy anything with a credit card, it would be a good idea to perform a credit check on yourself. Simply contact the three major credit reporting agencies in the U.S.-TransUnion, Equifax, and Experian-and request your report and credit score. You are entitled to a free copy of your report once a year from each company. Your report will show see exactly who you owe, the beginning and current balances, credit limits, and your payment history. If you find errors, contact the credit agency in writing to correct the discrepancies.
Use coupons- When it comes to deciding whether to use discounts and other promotions, the answer is a resounding yes! This is a great way to save money on goods and services you use. You can find coupons through online shopping sites, in the pages of magazines, or through the shopping centers themselves. Your local newspaper may even have a weekly section or insert of nothing but coupons! There are stores that mail coupons to you on a regular basis, as well. You can save quite a bit of money when using coupons, anywhere from 10 to 50 percent or more! Never use a coupon to purchase something just for the sake of using a coupon. If it is not an item you should normally use or need, then leave it in the store. The bottom line is coupons can help you get great deals and discounts for goods and commodities.
Reward yourself- When you know that you have ample money saved, reward yourself from time to time. You can treat your family to dinner or lunch, go on a trip, or do something simple, like buy a couple of books for home reading. Be careful though, as you should do this only once in a while. Do not spend on rewards every day as you should soon find yourself back at square one-looking for more money.
Discipline yourself for overspending- When you find you are spending more money than you should, it is time for a little self discipline. That means stop spending and look for ways to save. You can cut off your cable television or you can limit your food spending for a couple of weeks, until you are back on track. Be sure to put back whatever you have taken out of your saving account. For example if you wasted $30 on unnecessary items, work a little overtime and earn $30 to put back into your savings account.
Create your budget- This is one of the most important money saving tips for 20-somethings. Actually, it is one of the first things you should do. The first thing to do is to list all of your expenses (water, utilities, gas, transportation, loans, credit cards, and do not forget to include leisure and pleasure expenses). When that is finished, then write down all of your income. If your income is higher than your expenses-good for you! The difference between the two numbers is how much you have available to save each month. On the other hand, if your expenses are higher than your income, you need to do a little work. It is time to figure out where to cut your costs, or how to earn some extra money to cover your expenses.
Don not often eat out- Avoid eating out. Instead, prepare your meals at home and keep snacks on hand to reduce costs and expenses. You can spend a lot of money in restaurants. In some high-end restaurants, you can spend as much on one meal as it would cost for an entire weeks worth of food!
No matter which money saving tips you use, the important thing is to make sure it is something you can live with. This will help make it much easier to stick with in the long term.
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