Rightly crooned by ABBA in 1976, money is a factor that is something that will never say ‘This is enough’.
Moreover, rising prices and high standard of living has added more to using big bucks wisely. Sometimes, we find it really difficult to put a leash on the urge to kill our temptations, and restrict our spending in a prodigal manner to day-dreaming.
Unfortunately, personal finance is not given much consideration; considering the fact that we are dependent on our parents until we at least reach 18 or start working and earning. When, suddenly it comes to stepping out of a comfort zone of your warm cocoon, you get exposed to the harsh reality of saving up, spending and investing wisely.
1. Learn Self-Control
Learn to differentiate between ‘Need’ and ‘Want’. Of course, whatever you wish for can be purchased later on. Get to know what is the need of the hour and this way, you can cancel out many things that do not fall in the immediate time space.
2. Know Where Your Money Goes
Make a list. We sure know how boring and utterly exhausting it sounds when you’ve come back home shopping after a long haul. But trust me on this. Once you know how much money you’ve poured in which items, it becomes very easy to keep a track of your purchase records and get a picture about how things will look up for the upcoming months in case you need to go a little tight or easy on spending.
3. Start an Emergency Fund
Save money. Get used to it. You never know when an emergency knocks your door and you’ll find yourself in a dire need of cash, say in case of medical emergencies, academic emergencies or any other immediate instances. Better to be ready than to be sorry!
4. Apply for scholarships if applicable
Smart people always make the smart move! Need we say more on how this will affect your future savings?
5. Save up for Retirement
Okay, so we do not consider you to be old; but, definitely old enough to consider saving up for your other phase of your life.
The sooner and better you start saving, the less money you’ll have to invest and to end up with the amount you need to retire to be able to tag ‘working’ in later phases as an optional activity, rather than a sheer necessity!
6. Get Insured
Golden rule of leading a better, tension-free and happy life: Save and Invest. Getting yourself insured is the smartest way to save great amount of money; especially with medical insurance. Plus, the insurance comes with benefits which can save you from tons of money, considering the fact how expensive the treatments are getting.