The twenties is a time when teenagers become adults and step out of their colleges and universities and step into the corporate world. Students start their corporate lives with big dreams like having a car, a new house and of course, traveling their heart out. But do these dreams come true? Does a freshly graduated student on the verge of breaking big in the corporate world fulfill all his dreams so early? Fresh graduates start working and forget about investments and savings and start spending on weekend parties, traveling and other indulgences that seldom leave them with any saving. Our culture has also given them the freedom to buy now and pay later. But what if we learn to save in our twenties so that when we decide to settle in our thirties, we have something in the account to start a family and give them a debt free house and life.
Check out some easy yet smart tips that will help you save without compromising your lifestyle:
• Use your credit card don’t abuse it: Nowadays everyone has a credit card. It is considered a status symbol but smart people don’t tend to fall into the trap of credit cards. Learn to use credit card judiciously or else you will fall in debt that will not be easy to repay.
• Look for deals and offers: There are many online websites offering deals and offers on branded items. If you are brand conscious and want to purchase everything which has a tag, then look for deals and discount vouchers that will enhance your shopping experience and will make it under your budget. You can also check on ByDiscountCodes and look for offers.
• Follow 50, 30 and 20 rule: The golden rule to manage your salary is to spend 50% of your salary on your fixed expenses like your mortgage and utilities, use 30% toward discretionary spending like eating out, clothes and such and save 20% toward retirement or your emergency fund. In this way, you will spend judiciously and have enough hard cash saved to make a big purchase at the end of the year and investment that will yield a profit over the period.
• Practice making a monthly budget: Just like we have a daily journal or we make to do list at the office; one should write a monthly budget. Expenses that cannot be avoided, how much to splurge, how much to spend on clothes, grocery and of course a weekend budget. This will help you to know how much you are spending and saving.
• Make one big purchase every year: Purchase fixed assets every year as it will help you to plan your year accordingly. Making one big purchase every year like washing machine or vehicle will help you have everything a family needs.
• Implement don’t just plan: Lastly planning is not successful until and unless you implement it. So don’t forget to implement and make your life easy.
By the time you will reach in your thirties you will have enough resources and reserve to start a new life without any stress or baggage of debts.
*This post was contributed. Family friendly posts are welcome.