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3 Money Saving Tips for Younger Generation

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3 Money Saving Tips for Younger Generation
Sampurna Majumder - 27 April 2019

Saving money is extremely important if you are planning for future goals. However, the modern-day younger generation, that is the millennials and the GenZ do not seem to take this matter on a serious note.

If we analyse, we will get to see that, for the younger generation its more about the aspect of instant gratification rather than focussing on future financial goals. A common rant that we get to hear from them is, there isn’t enough money to save!

However, beyond this noise, lies the sober fact that saving money requires almost equal efforts, as much as earning it. The entire ecosystem surrounding us is definitely highly tempting. Offers like “Buy Two Get Three Free” or “Flat 70 Per Cent Discount” are definitely difficult to resist, especially when you have worked really hard in terms of earning money.

Nonetheless, since saving money is extremely important, we need to understand the significance of developing a habit of saving money. Some of the best ways in which millennials and GenZ can save money include the following:

1. Learn to make a budget; stick to it

The first step towards saving money is the make a budget. Depending upon your monthly income, do remember to prepare a budget. This must include strictly keeping aside at least 20 per cent of your income in a separate account. Track your daily finances using any of the numerous applications available online and make necessary amendments, if needed. Initially, you may not like living on a budget, but as your bank balance increases over time, you will feel that sense of accomplishment.

2. Scan six months’ expenses and check where to curtail

You can adopt one of the two-ways to save more. Either earn more or spend less. However, we all know, earning money isn’t as easy as watching Netflix. Therefore, the obvious focus falls on the second, that is to spend less or spend in a calculative manner.

Observe your expenses pattern of at least past six months and then see where all you can curtail. This is extremely useful for all those who tend to use debit or credit cards frequently. Pull up past few months’ statement and you will know where all you have spent those extra bucks!

Extra bucks or unnecessary expenditure? What are these? Well, it includes expenses you could have easily avoided. For example, you took a rikshaw for a mere 600 metres ride or you booked an Ola or Uber for a 2.5 km ride. The amount might seem small back then, but every time you booked a ride to cover the same distance, it adds up to a lot. Like, 14 Uber rides for Rs 80 adds up to more than Rs. 1000. This amount could have been easily saved had you been a little cautious with your transport. In fact, you could have started a SIP with that amount! Well, millennials and GenZ make every rupee count.

3. Use an automatic account to ensure easy investments

You must be pretty much used to the pop-up toaster that you see everyday or the utilitarian microwave in your kitchen that heats food within minutes. Such habits with less human intervention have actually made life easier.

So, why not implement the same in terms of financial investments? Make savings automatic too. Instruct your bank so that your monthly SIPs get auto-debited. Over time, you will realise that it has paid off and you have been able to accumulate a lump sum amount by the end of 12 months!

As mentioned earlier, saving money requires as much efforts as earning it. Therefore, it is an absolute necessity to save money. It goes without saying that these tips do not require in-depth financial knowledge. All you have to do is be a little meticulous with your financial planning and thus ensure a secured future for yourself.

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