Graduation has come and gone. Four years ago, you were walking out of high school and into college. Now, you’re walking out of college and into the world. The world has no safety net. Where-as college is much less sheltering than high school, now you’re on your own.
Saving money is difficult for people of any age. Cost of living is too high for most people to ever imagine putting money away. Savings are important for retirement and rainy days. You never know just how much that money will come in handy until you use it.
The following tips are designed for college graduates but can be used by anyone to save some money. Some of these may seem humorous or even like common sense. Sadly, we do not live in a world where common sense is all too common. After figuring out loan payments and bills follow these tips….
1) Challenge Yourself
What young adult doesn’t enjoy a good challenge? A way to prove to themselves (or others) that they can do anything they set their mind to. Challenge yourself to put back money each pay period. Don’t think, “Oh… maybe next week…” Now is the time to start saving.
2) Small Bricks Make a Big Wall
Don’t sweat putting away hundreds of dollars per month. Put ten to twenty bucks per pay period into your savings account. You’ll be shocked at just how quickly that money adds up. Eventually, your savings will begin to grow. Slowly but surely, you’re putting away money for later down the road.
3) Ask Yourself The Three Basic Consumer Questions
Before buying anything that is costly, think about it first. Ask yourself the three basic questions every consumer should ask themselves before buying a product.
A) Do I Need This? If you decide that you can survive and be happy without the product, you do not need it.
B) How Badly Do I Want This? It’s okay to spoil yourself. Maybe you don’t need it, maybe you want it. Ask yourself if you want it enough to spend hard earned money on.
C) How Much Is It? Obviously, you will need to know the price of the item. Ask yourself how much money you’ll have left over after the purchase and see if that money may not be best used another way.
You might find that at the end of each month, your savings account is growing. Don’t even think about touching that money. Eventually, you’ll have enough for life decisions such as purchasing a home or investing. Hopefully you take these tips into consideration upon planning your financial future.