When you’re young, saving money may seem like an impossible task. It’s easy to see your pay cheque as a way to get by month-to-month and not a way to prepare for the future and save for financial difficulties. But putting just a little money aside each month can make a world of difference.
These five money-saving tips for young adults can help you get started on the path to future financial success.
Top ways to save money as a young adult
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- Make a budget: You have heard it before; creating and sticking to a budget is one of the best ways you can save money. Making a budget doesn’t mean you have to give up fun for the rest of your life. By creating a budget, you’ll be able to see where your money is going each month and allocate funds to saving, bills and entertainment.
- Don’t wait to save and invest: Saving and investing may seem like a challenge right now, but putting away just a few dollars a week can have a big impact. Use your budget to see how much money you can put into your savings account each month
- Save one-third of your income: If you aren’t sure how much you should save, experts recommend that you save one-third of your income if you can. By saving N1,000 out of every N3,000 you earn, you are making it easier on yourself to survive future financial difficulties, such as layoffs, health, and other surprise expenses.
- Start an emergency fund: Another good way to save for financial hardship is to start an emergency fund. Investopedia recommends putting some money into a high-interest savings account or money market account.
- Pay off your debt: While putting money into savings is a good way to prepare for your future, you should also be concerned about paying off your debt. You should be aggressive about paying off your debt and careful not to let your spending spiral out of control.
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