Are your spending habits healthy?
What do you normally do when you get cash? Do you immediately spend the money by buying something or going out or do you save it? If you save it where do you keep it? Do you have a bank account or do you keep it safely tucked under your pillow?
As we age chomas, we may need some financial guidance as to develop our own healthy financial habits. You might wonder why you need to start spending money responsibly, especially while you’re still young. But, learning and practising how to spend money responsibly now can help you have a strong and smart financial future. Here are ways on improving your spending habits and the benefits of saving.
Draw up a budget
Drawing up a budget is important because it helps you properly plan your finances. If you get an allowance every month or have a part-time job then you need to include that in your monthly budget. The purpose of a monthly budget is to realise how much you get per month, whether it’s from a part-time job or an allowance, what you spend your money on and how much of it you spend. You will start to see on paper what you spend your money on and whether or not you can save more money each month.
Open a savings account
Opening up a savings account may encourage you to manage your money better. Look around before you choose a bank and ask each bank what their savings rates are and decide where you will get the best deal. Once you’ve chosen your bank, select how much money you want to save each month and how much money you need for all of your expenses by referring back to your monthly budget. Once you have found your bank, you will feel more at ease knowing that your money is safe and is slowly growing. The more money you can save now, the brighter your financial future will be.
Give yourself some spending freedom
Try not to be too hard on yourself when trying to stick to your monthly budget because there may come a time when you and your friends want to go the movies or buy a gift for a relative. You need to be a little flexible in your spending habits and allow yourself to spend a little. You’re young so don’t rob yourself from socialising with your chomas. Drawing up a budget is important but you need to include money for fun activities otherwise you’ll start to hate your budget and will most likely not stick to it.
Specify what you need to save money for
Part of controlling your spending habits is by setting apart what you need and want. You need food, clothes and school books but you don’t need to buy clothes every month and you don’t need to buy takeaways almost every day. Right now, you may not have a lot of bills but as you get older your responsibilities may increase, for example, you may have to pay for rent and car instalments, and if you are already failing to learn to control your spending habits now, you might set yourself up for a future of over-spending and this may lead to a huge debt. So, before you decide on spending money on a designer top ask yourself if that extra money can be put that money towards something important.
Find a part-time job
Some people don’t have the luxury of getting a monthly income, so saving money every month might be hard to do. Finding a job will not only help you get money to save but it will also help you become independent and money savvy. Examples of part-time jobs can be a shop assistant, a part-time bank teller, to name a few. Getting a part-time job may also help you decide on what career you eventually want to have. Also, working part-time will look good on your college/university application and future job applications. A part-time job can also help you develop good social skills and help you network with the right people.
Chomas, developing healthy spending habits from a young age is important because it will help you as you get older. Your urge to spend money on just anything will lesson and your future self will thank you for it. Do you have any other tips for our chomas? Write them in the comments below.
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