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6 Tips on How to Save Money for Young People

Tips on How to Save Money for Young People

No matter you are young or old, it is always difficult to save money. If you are not “lucky” enough, then your payday may become “exchange” day between you and the creditors because of your daily expenses and those unexpected emergencies. But it is good if you can start to save money when you are still young—it will be easier to form good financial discipline from an early age.

1. Be aware of your monthly income.

Before you start to save money, you should know how much you have coming every month. It will be easy to know if you have steady income, while if your wages vary from week to week, you may need to make an average of your incomes of the last three or four months to get an understating of your income level.

2. Set a written budget.

The second step to save is to set a written budget including all you possible income and expenses. If you have yearly expenses, such as auto or health insurance, you can divide them into months and get the monthly averages. Put a fixed portion of the money left from your expenses consistently to have a good saving habit.

3. Don’t mix up your spending money and saving money.

You should separate the money for spending and those for saving. If possible, open up a separate saving account from another bank that is better not in your local area so that you will not try to withdraw money with an impulse. You may also want to look through online accounts such as ING Direct.

4. Think about shared living arrangement.

No matter you live at home together with your family or share an apartment with your roommate, you can discuss with them to see if you can sign a kind of shared living arrangement and split the costs for utility, cable, Internet, etc. Then you can have more money for you saving account.

5. Consider public transportation.

Making less use of your automobile can save you a lot in terms of maintenance, auto insurance, parking fee, gasoline and so on. If you can find public transportation near your area, then opt to use the bus or subways.

6. Reward yourself.

It will be very boring for your life if you only live for saving and not having fun. You should spend some fun money as reward for meeting the saving goal that you’ve set for yourself.

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