6 Smart Money Saving Tips For Young Employees

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Many young urban professionals (yuppies) are having difficulties in saving money. This is quite understandable. First, starting employees don’t have managerial salaries. They have to prove themselves first before earning big bucks. Second, some yuppies are family bread winners. Lastly, after spending some time in the university, acquiring purchasing powers gives a strong sense of accomplishment. However, it is hard to predict when unexpected circumstances will occur. Economic crisis might force companies to close down. Certain diseases might also strike a family member. Therefore, it is better to be ready than be sorry afterwards. Follow this money saving tips and see your savings grow!

Assess your needs and wants – Before you purchase something, ask the following questions first: Do I really need this? If I buy this, how will it help me? Will I be able to use this everyday? Always remember that needs are different from wants. Your needs are the ones that will sustain your survival. Wants, on the other hand, are materials that we can live without. Most of the times we are blinded by the idea that we really need the things that we badly want. Not because majority of the population uses this gadget already means that you should have it too. Quit the bandwagon and start saving!

Itemize your expenses – Make it a habit to track your expenditures. From transportation fees to the tips you give-list it all! In this way you’ll be able to effectively monitor how much money comes out from your pocket. There are times when you wonder where all your money went even though you have refrained from purchasing unimportant items. Yet, personal luxuries are not the only one that you have to address. It could be that your fare rate increased. Or it could be that you have been spending too much on your weekend parties. Itemize your expenses and identify areas that you should moderate.

Always look for alternatives – Avoid being too brand conscious. Be practical! Popular brands do not really mean that they are of high quality. In clothes for example, it is not the clothing line that will make a person attractive or appealing. It is how he/ she carries himself/herself. Always look for cheaper alternatives that offer almost the same quality. Why settle for a $100 short when you can have 2 for $50 a piece?

Be strict with your budget – Don’t think that you can always make it up on your next payday. Follow your budget plan no matter what happens. Saving money is a form of discipline and self-control. If you always take your budget for granted, you’ll never save a single cent.

Leave that credit card at home – Almost everybody is guilty of impulse buying. It is really hard to resist most especially if you have that credit card. However, since you act based on impulse and not on logic, it could eventually lead to bitter results. There is no faster way to acquire debt and lose money than having an uncontrolled credit card. Bring your credit card only when you have to pay huge amounts. If you have to purchase something, better pay it in cash. In this way, you resist the temptation of buying something you don’t really need and you don’t have to worry about that high credit card interest.

See to it that you allot a portion of your salary in your savings – Make it a habit to deposit at least 5% of your earnings in your savings account. Avoid making excuses like “I’ll allot 10% on the next payday.” Instead of making excuses, challenge yourself to allot more for your savings.

At the onset of your career, saving your hard-earned money should never be a mere option. You spent time and effort in acquiring that salary. Don’t waste it for materials that simply bring temporary joy and happiness. Save your money and prepare for a more stable future.