What a Young Man Needs to Know About Saving Money
Saving hurts.
It keeps you away from your goodtime buddies, it prevents you from buying the newly-released gadgets you really don’t need and it makes you pretend to dislike designer goods. But this is just a temporary thing. By the time you’re in your 30s, you would have saved enough to have better financial freedom and have the life you deserve – complete with high-tech gadgets, designer duds and good time with your buddies.
Budget works.
It’s messy, it’s frustrating and sometimes it doesn’t add up. You even get negative figures, but a budget is your best bet in case you don’t win the lotto or marry Britney Spears. Include only the necessary expenses in your budget like food, shelter and transportation (clothing should be a distant fourth).
While you’re at it, include savings as part of your budget. That way, you’ll see where your money is going.
The 20% rule rocks.
Saving at least 20% of your income (after tax) can help you grow your money stash quickly at a regular rate. It helps even more if you have it automatically deducted from your paycheck. That way you don’t get a hold of it and don’t have to make excuses in case you spend it.
Save like you’re retiring.
Retirement is a distant vision to any young man, but learning to save means learning to look forward to possibilities. Envision how you want your life to be many years down the line. Figure in a few nice bonuses like travel and hobbies and you’ll get an idea of how much you should set aside.
Compounding
It’s also a good idea to start saving at a young age because funds can grow at better rates. Other than that, you can also take advantage of compounding to help you make the most of your hard-earned money. If you’re retiring at 65, you’ll save more at 25 than you would at 35.
via NewsDay
image from 2earn-money.com
Tags: personal-finance, saving-money, young-adults-personal-finance
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