3 BEST MONEY SAVING TIPS FOR YOUNG ADULTS

The reality today shows that after a few years of working, many young people still have not had a good savings amount. The problem of spending always makes young people struggling so they don't know how to save money effectively. Many of them often fall into a passive financial status, making it difficult to achieve long-term financial goals such as buying a house, buying a car, setting up a business, traveling... for themselves. So what are best money saving tips for young adults?

Table of Contents

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1- Set up a spending diary
2- Control shopping
3- Set up a savings plan

Setting up a spending diary, limiting purchases, setting up savings and investments are ways to help young people secure their financial future.

1- Set up a spending diary

Setting up a spending diary is something very few young people do. Therefore, most young people over-spend their money that leads to out of money at the end of the month. To solve this problem, right from the moment of making money, young people need to record the amount of money they earn in a month, the amount of money spent by day and week. After each week or month, you need to review so that the next months consider income - spending as well as spend a small amount of money to save. This diary will help young people approach the daily habit of using money in the most detail.

2- Control shopping

Shopping is an essential need to maintain a stable life and today has become a habit and hobby of young people. Many people choose it as a way to relieve stress and pressure in life. Even many young people are addicted to shopping that leads to excessive spending and even debt.

3 best money saving tips for young adults / ph: pexels

In order not to waste money, young people need to make a list of the items they will buy and consider whether it is a necessity or simply a hobby. For items that are not really necessary, you can wait for discounts to buy cheap. However, young people do not fall into the trap of buying too much because of the desire to buy cheap which make you buy items that can only be used once.

3- Set up a savings plan

If you want to finish early retirement quickly, you should also create a financial and savings plan as soon as possible.

The earlier you start, the better your chances of taking advantage of the potential for compound growth in your savings. Compound interest will help your assets grow faster over time, by continuously re-saving.

Grow estimates that over time, you could see an increase in average annual costs of 5% to 10%, adjusted for inflation. According to experts at Grow, you should save at least 8% a month from your income. This is the safest number for most people.

Using hypothetical numbers is a great way to create goals for the future, but not a guarantee. These calculations do not include future market volatility, fees or other fluctuations that may affect the value of any of your accounts.

Remember that saving for the future is a marathon, not a sprint. Wherever you are on your path, it can be helpful to apply a realistic budgeting approach. Living suitable with your abilities and following a savings plan can help you make money effectively.

Because everyone's income and expenditure levels are different, there can be no common minimum saving level.

However, according to the analysis of experts, each person usually spends about 50% of monthly income on mandatory expenses, about 30% of other income is used to spend on discretionary expenses. Thus, the remaining 20% of income is for savings.

Experts recommend that you should save about 15-20% of your income every month and start from the age of 25.