Saving money can be rough, especially when you’re young. We all have friends who constantly buy new clothes, always have the latest gadgets, and go on lavish vacations. There are just so many temptations! However, it’s never too early to become financially responsible and figure out how to spend less and save more.
Maybe you’ve set your sights on the latest iPhone, a PS5, or buying your first car. There’s nothing wrong with dreaming big. It’s in our nature!
Still, saving money and working towards these goals can make them that much more rewarding. More importantly, they’ll be easier to reach! Here are our seven quick tips to help you manage your money better and keep more of it in your pockets.
Start a Savings Account
Although this one should be a no-brainer, many people struggle with it, especially while young. Many personal finance YouTubers will give you the same advice, even if you feel unmotivated to do it. It might not seem like a good idea, especially if you’re not making much. However, putting money into a savings account can help when you need it, no matter the amount.
Once you determine your targets, you can develop a plan to save money and create a budget. Even if you’re only getting an allowance or working a part-time job, be sure to put some money aside. Adding funds to your savings account regularly has two key benefits. It will help you develop financial management skills and improve your spending habits.
Draw a Line Between Your Spending Money and Your Savings
Let’s say you got some money in your savings account. You might be tempted to dip into it sooner or later, especially if you run out of cash. Don’t do it! Use your savings for emergencies and essentials.
It’d be wise to have a transaction (or checking) account and a direct deposit account you’d be able to access when needed. After all, it’ll come in handy if you don’t want to keep too much cash around. Remember, a savings account is a long-term thing, and checking accounts are for everyday needs.
Use Your Student ID if Possible
A student ID gives you access to a wide range of deals and discounts you can take advantage of. It can help you save money on school supplies, the latest tech, software, and much more!
Using these discounts can make your money-saving efforts significantly easier. More importantly, it will help you put more money aside for when you need it. In fact, it’s a good idea to ask about student deals and discounts everywhere. Although certain businesses may not advertise them, they might be able to take a few percent off if you ask.
Track Your Expenses
One of the key tricks on how to spend less and save more is keeping track of your purchases. This way, you’ll know whether you’re spending more than you should. So, keep your receipts! It’s also a good idea to write down your spending totals with dates and other relevant information.
Is there an explicit benefit of this approach? Absolutely. Seeing a figure next to a detailed purchase will make you think about it, at least for a second. If you spend too much on a boring movie or an overhyped video game, you’ll be more cautious moving forward.
You don’t have to apply the 50/30/20 rule if it’s not a great fit. However, dividing your funds into income and expenses will help. If writing stuff down doesn’t sound fun, you can take advantage of more modern tools. For one thing, you can use countless personal finance apps to make it less tedious.
Spend Smarter
Rather than spending money on your own, you might be able to split the costs in some cases. Books, magazines, trips, video games – you likely have a shared interest with someone near and dear to you. Think of siblings, friends, and even parents as your “co-investors.” After all, going 50/50 on something you can share will definitely leave some money in your pocket.
You can also collect coupons whenever you can, take advantage of any local loyalty programs, etc. If that’s not enough and you’re still wondering how to spend less and save more, smarter grocery shopping might be the answer. If you’re moving out of the family home, these simple tricks can do wonders for your budget!
Get a Job
Finding a job can also help you get some extra cash. If you have nothing lined up for your summer vacation, why not go for it? Aside from making money, you’ll have less time to make regrettable financial decisions!
It doesn’t have to be a full-time job, either. Working for a few hours a day can be more than enough. Or better yet, you can look into freelancing online. If you’re good at writing, video editing, graphic design, or something similar, you might be able to earn a few bucks without leaving your home.
Try Out Pawns.app
The simplest strategy on how to spend less and save more is to boost your budget wherever possible. If that boost requires minimal effort – even better!
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