In this month's On the Money, Jenny Hoff gives advice to younger professionals about how to supercharge their savings.
By Jenny Hoff
By Jenny Hoff, Photo by Priscilla Du Preez
You’re young, ambitious and earning more money than ever before. But before you let “lifestyle creep” eat away at your hard-earned cash, let’s talk about ways you can upgrade your lifestyle while still saving for future goals.
Create a budget battle plan.
Budgeting might sound boring, but it’s a must-do no matter how much you’re making. Sit down and map out your income, expenses and savings goals. As a young woman, it’s crucial to understand where your money is going and what you can afford. Prioritize your essentials like rent, utilities and student loan payments. Allocate a portion of your income for guilt-free spending, but be sure to set aside a healthy chunk for savings. This budget will be your roadmap to financial success.
Embrace the “delayed gratification” strategy.
Being young means having plenty of desires and dreams. While it’s tempting to indulge in instant gratification, practice the art of delayed gratification. If you’ve been eyeing that dream vacation or a new gadget, save up for it instead of relying on credit. Set milestones and reward yourself when you reach them. This way, you’ll appreciate your treats even more, and your savings will keep growing.
Automate your savings.
Let’s face it, life gets busy, and saving money might slip through the cracks. That’s why automating your savings is a game-changer. Set up automatic transfers from your paycheck to a dedicated savings account. This way, you won’t have to rely on willpower alone to save. It’ll happen effortlessly in the background, paving the way to financial freedom.
Beware the temptation of credit cards.
Credit cards can be enticing, especially with those shiny rewards and cashback offers. To avoid falling into the debt trap, use credit cards responsibly. Pay your balance in full each month, and if you can’t afford it, don’t charge it. Overspending on credit cards only leads to high-interest charges and endless debt. Treat your credit card as a tool for convenience, not a ticket to a shopping spree.
Hang out with people with similar goals.
You’re not alone on this financial journey. Surround yourself with like-minded friends who are also passionate about building their savings. Together, you can motivate each other to resist lifestyle creep. Organize budget-friendly outings, swap money-saving tips and cheer each other on during milestones. Find fun ways to hang out that don’t involve overspending. After all, it’s not the restaurant that makes the night; it’s the people you’re out with. With a supportive squad by your side, you’ll stay motivated and keep your financial goals intact.
Remember, you have the power to shape your financial future. With a solid budget, delayed gratification, automated savings, responsible credit card usage and a supportive group of friends, you’re on the path to becoming a financial rockstar. Embrace your financial prowess and watch your savings soar. Your future self will thank you.
