By Younas Chaudhary
In my twenties, I made $3.31 per hour at my first job in Canada. I would save $1 an hour, approximately 30%. In less than two years, I purchased my first condo with my savings. I wonder how many youngsters can do that today! Most young people have less than two weeks of pay saved. I cannot sympathize with them for their foolish ways of handling money. Here are few tips for young adults to save money:
- Whether you make $50,000 or $500,000 dollars annually, always save a portion of your own income each and every month. You can follow the 50/30/20 budget rule: 50% on needs, 30% on wants and 20% on savings. Or follow any rule, though be consistent and save money for a rainy day.
- Money can never buy you happiness, but it will give you peace of mind.
- As a youngster, try to learn about handling money. Learn from the many good resources on the internet that teach you how to manage and save your money.
- It’s no fun spending the weekend eating out with friends and starving on Monday with ramen and tap water.
- Pay off your student loans as early as you can. Your student loan debt generally cannot be discharged or forgiven even in bankruptcy and hurts the economy.
- Don’t watch TikTok and buy something useless from Target because someone said it’s cute. Your stupid, impulsive decision will make you broke!
- Have an emergency fund and use it only for an emergency that covers at least six months of expenses. This will help you survive a sudden job loss until you can get back on your feet.
- When you buy a car, don’t ask about your monthly payments, instead, ask about the interest rate. Credit Unions often offer low interest rate auto loans. Never lease a car just because your friends have newer leased cars.
- Help your parents and family with household chores. If you receive any compensation or a gift, try to save all that money.
- Nobody cares what you drive or how expensive your clothes are. What’s in your bank and your investment portfolio accounts will give you the most comfort, security, and confidence.
- Remember the Biblical saying that the borrower is always slave to the lender.
- If you are a teenager, open accounts and have an account with your parents so that you can get tips to save money much early in life.
- If you are under age 18, ask your parents to purchase life insurance and other investments in stocks.
- The earlier you buy a home, the more money you will make in the long run from your homestead.
- Always remember that having money is not a sin. Using it foolishly is an unforgivable sin.
- Be wary of get rich quick schemes like crypto. For the last decade, countless people have asked me to invest in crypto, but I always declined it. Believe in things that show steady appreciation in value and don’t be lured into glittery stuff.
- 90% of handling money is instinctive, it’s behavioral, and only 10% is logical. Pay attention and focus on the logical.
The views, thoughts, and opinions expressed in this article are my own and do not represent the opinions of any entity with which I have been, am now, or will be affiliated. Further, I make no warranty regarding the accuracy or effectiveness of my recommendations, and readers are advised to consult other advisors as well as their own judgments in making business decisions.