For some people, saving is just an option that is at the bottom of the list. I couldn’t blame them, we all grew up in a society where bills and other expenses should be covered up first before putting money in a bank account. But, if you’re in your 20s now, you should be able to think about your future if you don’t save. Some instances that you could experience if you don’t save include not being able to retire early and no emergency funds at all. Imagine falling in line in banks just to avail loans because something came up at home and you need money for hospitalization. If you save as early as now, you can avoid all these hassles when you grow older. So, here’s the saving habits you need to have in your 20s.
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If you’re in your 20s right now, do not spend all the money you get from working. It doesn’t matter how much your income is. As early as today, you should make it a habit to just spend a portion of your income, say 20-30% to pay your monthly bills and other expenses that need to be settled. Make sure that you still have money left in your bank account or wallet that is not meant for spending. Do not aim to exhaust all the money you have thinking that you can still get your salary by next cut off. It’s a wrong mindset. Instead, think of your incoming salary as another opportunity to increase your savings and investment.
Saving should not be an option but rather something mandatory, just like paying off your loans or bills. One of the habits you need to get used to is saving or investing regularly. If you cannot guarantee that you won’t spend the money left in your pockets, put it in an investment account where it can grow bigger. Open an account with COL Financial or Metro Sec if you want to invest in stocks. You can also choose to open an investment-like insurance account so you would have to pay for the premium monthly. Regularly means doing it continuously, without getting backlogs. Setting a percentage, say 10-15% of your income to put in saving or investing account helps. Invest or save regularly as early as now!
I know millennials are fond of traveling and buying the latest gadgets not to show off but to experience the latest trends today. While it’s not that bad to do all of those things, you should keep in mind that these are all unnecessary expenses which can hurt your budget. Want to know why you are experiencing “petsa de peligro” every single time? That’s because you spend your money on things that you won’t be needing in the coming days. Spend on the stuff that you need and set aside your wants. The time for your travel will come if you save and invest early.