For the younger generations, saving money might not be one of the most important thoughts in life. Just having money in the bank is likely good enough at that moment. It’s easy to think that you’ll have plenty of time later in life to save your money, so why not enjoy it right now?
While in your younger years it is nice to splurge and enjoy your life before you have more responsibilities added (bills, mortgages, children, additional expenses), it is also the perfect time to begin saving as well. Imagine if you started setting aside even $10 a week at 20-years-old. That $10 will grow to $520 a year, and to $5,200 by the time you’re 30. That’s a decent amount of money saved for such a small weekly contribution (not accounting for interest either).
It’s time to start showing younger generations the importance of learning about good money habits and why saving early on in life will benefit you when you most need it. So, here are a few money-saving tips for beginners.
#1 Use Money Saving Apps
In today’s world, there are so many apps and online sources easily available that will help you keep track of your spending and save money. Many popular apps will even connect to your bank account and credit cards to help give you a more precise snapshot of what your spending habits are like. They’ll show you where your money is going, how you can cut back, and keep you on top of any bills you may have.
#2 Start Investing
If you’re looking for ways to not only save but to grow your money, learn how to invest. You don’t need to have a ton of money in the bank to begin investing. In fact, starting as early as possible, even if a small contribution, will give you more time to watch that investment grow.
Before you begin, try and get a basic understanding of what it takes to invest. Diving head first not knowing what you are doing could backfire. Do a bit of research on how to invest and what will work best for your financial situation.
#3 Start an Emergency Fund
If there’s one thing that you should really start doing, it’s setting money aside for an emergency fund. This money shouldn’t be looked at as extra cash for whenever. It should be for emergencies only. An unexpected bill, accident, illness, disaster, or anything else that could catch you off guard would benefit from an emergency fund.
The earlier you can start contributing to an emergency fund, the better off you will be if the time comes that you need it. If an accident happens and you do not have enough money for it, you could find yourself getting thrown deep into debt.
#4 Set Yourself Goals
There’s a lot of benefits to set yourself goals. They help keep you motivated and on track. Setting goals is an excellent financial technique to save you as much money as possible.
Your goals can range from paying off the remainder of your credit card to putting aside 10% of your paycheque into a savings or investment. No matter what you have in mind, brainstorm and plan out short-term and long-term goals. Write them out and have them readily available, so you stay on your money-saving path.
#5 Learn From Others
Remember that you are not the only one in the same position. Many out there are either beginning to save for the first time or wished they would have started saving earlier in life. Use their experiences to your advantage.
Explore the web to see what other people do to help grow their savings. Read tips from experienced savers that have helped get them to where they are, or what they would have done differently. Remember, not all suggestions will fit your lifestyle, but they are definitely worth the read.