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How to save money: 7 tips for young people

How to save money: 7 tips for young people

This is the case not only in our country but also in Developed countries. Thus, according to a study conducted overseas, 54% of young people aged 18 to 24 years old dine at a restaurant at least three times a week. 30% of young people of the same age group declare that they buy coffee

This is the case not only in our country but also in Developed countries.

Thus, according to a study conducted overseas, 54% of young people aged 18 to 24 years old dine at a restaurant at least three times a week.

30% of young people of the same age group declare that they buy coffee at least three times a week. 51% of people aged 21 to 26 years old go to the bar at least once a week.

Thus, they spend a lot of money on their entertainment and enjoyment.

Very often, financial advisors offer fairly common advice: if you stop buying coffee every day or start eating exclusively at home, you will become a millionaire in 100 years.

The problem with this advice is that it does not work.

Of course, it is important to be able to save and not to waste money, but it is also important to be able to highlight priorities – to spend money on those little pleasures that make you happier, and not to spend on those that do not.

Of course, it is quite difficult for a young man, inexperienced in terms of finances, to properly prioritize and control his finances, especially when people around him are only talking about the economic crisis, rising prices and not rising wages.

Despite the fact that this is not an easy task, experts say that young people who are just beginning to learn life can still control their finances and save some money.

Below are 7 tips that help improve your financial situation.

1. Live like a student for several years after graduation.

The phrase “poor student” has become a household word, not only in our country. Students in many countries of the world (with the exception of the children of rich parents) live in rather constrained circumstances.

They do not go to restaurants, do not buy expensive clothes. If they rent a house, then this is a fairly cheap house, which they share with their friends.

If you can live for several years after graduation in the same mode as in student life, then this will save a pretty good amount of money and will be a good start for your future life.

In addition, it will help not to incur debts and not to take loans from the bank.

You will develop good spending habits. And while you are young, you can enjoy things that do not require investing huge amounts of money.

2. Do not buy the first separate housing.

Buying an apartment requires huge investments, hard work, and it also eats up most of your budget.

You should not try hard to buy your own home while you are young, even though it seems like a logical step at the beginning of an independent life.

There is nothing terrible in the fact that you will rent housing for several years until you start earning enough money to buy housing.

Another way to save on housing is to rent an apartment with friends. It doesn’t matter if you rent or buy housing, housing costs will be the biggest item in your monthly expenses.

And if you can share these costs with other people, this will be a great solution in terms of saving money.

3. Do not buy a new car.

A new car is an asset that depreciates very quickly. In the first year, the cost of the car falls by 20-30%.

If you want to save money, then buying a new car is not the most reasonable solution.

4. Focus on fixed costs.

It is important to be able to calculate how much you spend each month regularly. Suppose utility bills or rental housing are expenses that you cannot change.

Therefore, for yourself, you have the amount after the payment of these expenses.

Rule 50-30-20 is a good start.

According to this rule, you spend 50% of your budget on the essentials — transportation, rent, treatment — 30% of the budget — on pleasure and entertainment. And another 20% you save or spend on debt repayment.

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