Just because you are young, that doesn’t mean that you have to struggle financially. Many young people see their paycheck as just a month-to-month or even week-to-week survival tool, and not as a way to prepare for the future and grow financially.

There are so many things in life that it can seem overwhelming to learn and understand how to build a financially secure future because they don’t teach us this in schools.

Well, we’re here to help. With so many easy ways to save money, and to make your money work for you, you should be able to afford your life and enjoy it, too.


Let me share a few tips to save money as a young professional

  • Set yourself a budget. We know, we know. You hear this one all the time, but it really is one of the keys to financial security. Look at your current income, then look at all of your expenses. Write everything down, or use an online budgeting tool, and this way you can see where all of your money is going. You’ll have to make sure you are very honest with yourself at this stage about what you’re spending your money on. Once you do that, you can start allocating your income. Start with the essentials: food, rent, and bills. Once those are set aside you are able to add in things like entertainment and adventures! The key to remember with your budget is this: your budget will need to flex with your income, so don’t stress. Keep track of the flow of your money with an online app and remember to live within your means.
  • Start putting money into an emergency fund. Life will always have some unexpected twists (good and bad) to throw your way, so having money set aside in an easily accessible savings fund for these times is important. It could be anything from a car breakdown or losing a job to having a kid unexpectedly or a great opportunity for an adventure. Any of these unforeseen circumstances will need you to have some money stored away. Ideally, you should try to allocate between 10%-20% of your income to this fund. Setting this amount aside each paycheck will build up over time and allow you a cushion to fall into if things go unexpectedly.
  • Check your debt and make a plan to conquer it. First things first when dealing with debt: there are two types, necessary and unnecessary. Necessary debt is when you need to borrow money for an asset that provides a long-term benefit, like education or a home. Unnecessary debt is when you try to keep up with all of the latest trends using your credit card and end up in a money hole. Try to prioritize your long-term goals over the quick fads. You should also create a plan for paying off said debt. Itemize your debt from most pressing to least, and work to pay off the most crucial first.
  • Invest in your future. This can mean saving for retirement or investing in further education to boost your career. When working on saving for retirement, if your company offers some sort of plan, you can hop on board with that. You can also set up your own retirement fund through a bank. Put 5%-10% into that fund directly from each paycheck (increasing it as your pay allows) and watch it grow! When investing in further education, you may find yourself needing new skills to advance in your current career, or you may want to change careers altogether. Either way, investing in that will bring greater rewards in the future.
  • Look into other investment options. Beginners in investing will most likely need some help in this area. A good place to start is by looking at fixed deposits and mutual funds. These funds are managed by experts who have training in this area and are skilled in investment profitability. You can also do a personal risk assessment and look into investing in physical assets such as gold. There are tons of options when it comes to investing, and even if it is just a small amount, it’s never too early to start.
  • Learn to ask questions. Asking for help or clarification when it comes to your finances is never a bad thing. You need to understand what is happening when it comes to your money, so asking someone to explain the process to you is a good place to start. Always read over contracts before signing, read books on personal finance, etc. Anything you can do to learn more about financial health is a smart move.
  • Learn to say “no” sometimes. While turning down invitations to go out for food, head out on a vacation, or hitting up a concert may cause some serious FOMO it may be necessary from time to time if you have a set financial goal that you are working towards. Prioritize what is most important and learn to say no to the other things when you need to. Always remember to be kind about it, though, since you do still want to hang out with them once you’re financially stable.
  • Make sure you are getting the best prices and deals. If you constantly are purchasing and using various products and services, use a site like Sonary to help compare packages and deals. Sonary helps track down and put all of that information in one place to save you time and effort, and hopefully a little money as well.

Here’s the bottom line: you can save money for your future as a young professional. If you take the time to lay out your finances and create a plan to tackle your goals, you can make some serious moves towards financial security, and have some fun along the way. We hope you’ve learned some valuable information from this article, and we hope you come back to us with any other financial questions!

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