Are you getting allowance from your parents for school every month? Whether is a yes or no, did you save your money every month and how many percent did you save?
If you never save your money every month, then do you have any plans for your future? It is essential to know the importance of saving money because earning money is always not easy no matter what.
Nowadays in Singapore, most students are more well-off than before and not worry about life in the future. Well, you need to start worry about it as your parents are not going to keep working until they are in their 70s or 80s and keep providing you with financial support.
If you are working part time to support yourself for school, then is good for you. However, to have your own savings is always good as to prepare yourself for your future use or rainy days.
If you do save your money every month, then the amount you saved is it a fixed amount? There are some people who say that they did save their money, but only when they have left over amount or have too much coins in their wallet then they will put inside their piggy bank.
In fact, they are actually sort of convince themselves that they got save their money.
The issue is that you will not know how much you have saved and whether is it enough for your future use. Moreover, you are not treating saving money seriously and you will have the tendency to use it for big spending.
The attitude is just not right. How rich or poor in the future depends on how you deal with your financial management.
Although you are probably just a student and should not be thinking about so deep for the future, but having to master the art of saving is the start to get yourself ready to step into the society, especially if you are doing business in Singapore.
I have a few advice that can help you to master your saving money skills and you can share with others who do not know how to manage their money.
1. Know why you need to save money.
You must know the reasons why you need to save money and your reasons must be strong enough to allow you to have the mindset of the need to save. For example, “I need to save money to prepare myself for rainy days if ever my parents are not doing so well financially.”
So it is important to have strong reasons and if you can’t think of any reasons then you can start off by thinking about being independent and not to depend on your parents for allowance to buy something that you want.
2. Set aside the amount that you want to save every month.
No matter how much allowances you get from your parents or how much money you earn from your part time job every month, you must set aside a fixed percentage of the amount into your piggy bank straight away before you start spending it.
Do not wait until you forgot that you need to put the fixed amount of money for saving. I have friends who keep telling me that they keep forgetting to set aside and allow it to happen so often.
So what is the fixed amount is considered enough for saving? Well, preferably I think 30% to 40% of your monthly allowance is probably good enough. If you think you can’t save that much, then you can start off with 10% to 20% of your monthly allowance and then start to see what are the things that you spent is unnecessary.
From there, grow the amount that you want to save per month. Remember, the amount you set aside must be a fixed amount every single month.
3. Calculate your daily expenses.
You got to take note of the amount you spent everyday. Calculate your daily expenses is not being stingy. This is to check and balance of your own expenses so that you will know how much have you spent yesterday or today so as to prevent yourself from overspending your money.
Have a checklist or notepad app in your phone to note down what are the things you have spent everyday. By knowing what have you spent and how much you have spent will allow you to know where your money has gone to and to realize the importance of controlling your spending.
Make sure to treat this very important so that you will not have the tendency to take out money from your piggy bank.
4. Eliminate your unnecessary spending.
After knowing what you have spent on every month, you need to ask yourself whether some of the stuffs that you bought or going to a restaurant to eat is it necessary or not.
Is it a must to buy bottle or can drinks and tidbits to satisfy your mouth when you are on the way home from school? Or is it a must to buy at least one t-shirt or dress in the shopping center every month? Do you really have to go to Night Clubs every Saturday night?
All these questions are for you to think about it. Your reason of spending certain things need to be strong enough to judge whether is it necessary or not. If is unnecessary spending, eliminate it. Do not spend your money unnecessary.
5. Be discipline towards your saving plan.
This is the most important advice of all. If you have planned on how to save and spend your money per month, you got to stick to it all the way.
Discipline is the key to make your plan works and you will see your piggy bank getting heavier. That is the results of your plan! So be discipline towards your saving plan and stay consistent to it.
Without discipline, all of the above advice that I have mentioned will be gone down to waste. Please keep this in your heart and mind.
Mastering the art of saving is actually not difficult at all. You need to have the correct mindset and change your current lifestyle accordingly if you need to in order to save a lot of money.
However, saving money is definitely still not good enough as it will not help to fight inflation. But it is a start for everyone to know the importance of your own financial management and able to retire on time.
Quote of the Day!
“Don’t be afraid to walk a different path from others when you want to achieve your success.”
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Please do comment below if you have any feedback or anything that you want to share with me.
Have a great day!