The habit of saving has actually been instilled in us for a long time. The problem of saving which comes often is our consistency and self-awareness. Teenagers in their 20s often think that they will only need to save when they have something to buy, or when they get married later. Yet this thought is very misleading. We as humans, will be faced with unexpected possibilities that cannot be avoided. Saving is one way that we can be prepared for this.
Saving is not about how much money you save. In fact, there are many young people who are still in college and do not have any income, but they still find ways to save their money, but there are also young entrepreneurs face difficulties in saving or planning their finances, which results to the downfall of their business. Sometimes, the desire to buy something that we don’t really need is hard to resist, but know that we have to control this. Start realizing that you can save your future by saving your money. With this condition, a question will arise, what can we do to manage our finances?
Manage Your Budget
The amount of money that you need depends on yourself. As stated before, holding back the desire to waste money on things that are not really important often happens. However, if you already know what your basic needs are, determine the function value of a good or service that you will use, then you can avoid this. By doing this, there will be no money wasted.
Cut Your Expenses
After you start to manage your budget, the next step is to cut your expenses. If you did success on the first step, you will know the primary needs that you really need to survive, and the secondary needs that you can tolerate first. A small example of implementing this step is if you and your friends usually go to the coffee shop every weekend, then you can visit only once a month to cut your expenses.
Set Your Targets
Having goals or targets is important. Do not waste your savings on nothing. You can always set your targets, whether it can be your long or short-term targets. Make sure you project your savings to achieve these targets. In doing this, you must prioritize the priority targets first.
Start a Business or Investment
When you are able to determine your budget and cut your expenses, try to get source of income by doing business or investment. If you are still in college and do not have a permanent job, start a business. As a starter, your business does not have to use large capital, on a good side, there are many businesses which offer advantages without requiring capital to start.
However, if you already have a job and a steady income, there is nothing wrong with investing some of your income into something more profitable. Similar to doing business, your investment does not have to be in something large like property investment that must be paid in installments for dozens of years.