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:

1. 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.
2. Money can never buy you happiness, but it will give you peace of mind.
3. 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.
4. It’s no fun spending the weekend eating out with friends and starving on Monday with ramen and tap water.
5. 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.
6. Don’t watch TikTok and buy something useless from Target because someone said it’s cute.  Your stupid, impulsive decision will make you broke!
7. 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.
8. 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.
9. Help your parents and family with household chores. If you receive any compensation or a gift, try to save all that money.  
10. 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.
11. Remember the Biblical saying that the borrower is always slave to the lender.
12. 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.
13. If you are under age 18, ask your parents to purchase life insurance and other investments in stocks.
14. The earlier you buy a home, the more money you will make in the long run from your homestead.
15. Always remember that having money is not a sin. Using it foolishly is an unforgivable sin.
16. 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.
17. 90% of handling money is instinctive, it’s behavioral, and only 10% is logical. Pay attention and focus on the logical.

Blessings!

Disclaimer

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.

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