Home Finance Why And How To Save Money At Young Age (Part I)

Why And How To Save Money At Young Age (Part I)

128
0
SHARE

If you are in your 20s, you may not understand the importance of saving now. Below points will guide you why to keep aside some fund every month for your retirement.

Have control on your spending

A good financial health is very necessary in whatever age you are and hence it is suggested to spend responsibly to build a good foundation of your finances. Experts urges to track your purchases and know whether you are spending too much or just appropriate. Try to figure out which area is consuming more of your money, whether it is entertainment, dining out or groceries.

Financial adviser says to wait for at least 72 hours in case of impulse buying. This will give you some more time to think whether to make the purchase and whether it is necessary to purchase.

Do regular saving

It is a good challenge to save money, but it is necessary. Try to simplify the process and you won’t find it to be such a great challenge. The first thing to do is to have part of your paycheck directly deposited into your savings account.

The first priority of your saving should be to create an emergency fund. It should be large enough to cover your living expenses up to six months. It is not an overnight job, but it is suggested to start setting aside smaller fund and grow it gradually.

Even don’t get discouraged if you come across some unexpected expenses. The goal amount will definitely rise and fall over time as circumstances change.

Why And How To Save Money At Young Age (Part II)