5 SAVING TIPS FOR FRESH GRADUATES
Ideally, saving is a living hell for fresh graduates from the University and even to most of us when you haven’t started, you imagine all you are going to miss Saturday Beach bash with your buddies when you put that money aside for uncertainties, short term plan or even long term plans.
For a University graduate who has got a job probably paying him or her $100,and in that money, he wants to get a house for rent, buy house necessities ,and probably go out sometimes with friends to have fun and that is all, the whole $100 gets done without putting a penny aside for uncalled for situations like sickness.
We all want to save money, but how to start is a whole mountain to climb, everyone has their own way to save.
Try these five money-saving tips to save your money for short term or long term goals and even for uncertainties that may arise in future.
- Record your expenses
The first step to start saving is by writing down somewhere how much you have spent in a day or a week. This will require you to note down traditionally, certain every household items and cash tip you spend, will be recorded.
A personal recording of your expenses will help you know how much you spend in a day or week which will give an estimation of the total amount you can spend in a month through the data you gathered on how much you spent on gas, groceries, data, power, water.
2. Budget for saving
Once you have an idea of what you can spend in a month, you can begin to organize your recorded expenses into a workable budget. Your expenses should measure to your income. For you to save, your expenses should not be higher than your income.
3. Find ways you can reduce or cut your spending
If your expenses are so high, and you can’t save much . It is time you can spend less. Reduce money on groceries and put some percentage on your saving budget together with stopping to buy daily internet. Oh my! procuring mobile internet daily is an arm and a leg moreover you can not do without data, thereupon you can opt for a monthly data, this will help you save some money and stop over spending.
4. Set saving goals and make saving Automatic
One of the best way to start saving is to set a goal. Start by thinking what you want to do in the future, is it a short term goal such as buying a car, build a house, go for vacation, holidays and many more goal or long term goal such as retirement, Education, start a produce business. After that, draw your budget plan, how will it cost ,this will lead you to how much you plan to save to have beautiful house and how you are going to save.
If it is long term, like Education and retirement, then you will need to start putting money in an investment account for instance IRA (Insurance Regulatory Authorities ) like Jubilee Life Insurance. Although investments come will a lot of risks and loses too, it very important to take the risk and grow.
Making saving automatic is very important, for example when you are saving for a particular thing you buy lets say in a gross period of 1 year, you can open a fixed deposit account where your money is deducted directly from your account monthly and you can only withdraw that money when 1 year elapses.
5. Decide on your priorities
After your expenses and income, your goals are likely to have the biggest impact on how you allocate your saving. Be very sure to remember long-term goals. it’s important that planning for retirement doesn’t take a back seat to shorter-term needs.
You have to start saving now, Martin Luther King. Jr once said that you don’t have to see the whole stair case, Just take the First step.