It’s great to be young and carefree but, whatever your age, it pays to look ahead to the future. An incredibly high percentage of twenty-somethings don’t have any savings at all and that can become a major issue as they get older and look to settle down. Buying a house, getting married and providing for a family all require large sums of money and, without adequate savings, could be a major burden.
Here are some basic tips to help get you started:
1. Get into good habits. Saving money seems difficult at first but, like anything else, it takes time to get used to. The sooner you start, the sooner you’ll get accustomed to it. Before you know it, saving money will be a normal part of your everyday life. Stick to small sums at the beginning and gradually work your way up.
2. Live below your means. Simply put, this means having more money coming in than going out. Setting a strict budget and sticking to it is a great way to curb overspending. If your spending isn’t out of control but you’re still struggling to save, you might need to consider finding a more high-paying job. It’s easier said
than done but keep an eye out for attractive positions and try to upskill as much as possible.
3. Emergency money. Having a separate emergency fund will protect your actual savings in the event of an unforeseen expense. Accidents, illnesses or acts of God can all put a huge drain on your finances and the money you had put aside for a house or a holiday can vanish in a heartbeat. An emergency fund provides a safety net in such instances. Everyone’s circumstances are different, of course, but it is recommended to have at least €1000 in reserve.
4. Set goals. No matter what you’re trying to achieve in life, it’s important to set yourself realistic goals. This will provide motivation and also give you a sense of achievement as you gradually get closer and closer to your target.
5. Save for retirement. Retirement might seem like a million years away when you’re 25 but the earlier you start planning for it, the better. Retirement is supposed to be the part of your life when you can do all the things you’ve always wanted. It’s not a time to be worrying about money. If you wait until you’re older to start saving, you’ll have to put away a lot more money per year than you would if you started now.
6. Technology is your friend. Saving can be difficult so it makes sense to enlist all the help you can get. Use your computer to keep track of your finances and download apps that will help manage your finances. Check out our blog post on money-saving apps here.
7. Speak to an expert. At Gallivan Financial, our dedicated staff are always on hand to offer professional, impartial advice. Give us a shout today. We’ll be delighted to help.
The Team at Gallivan Financial