In this day and age, it seems young adults are beginning to graduate later, start careers later, get married later, have kids later… And yep, you’ve got it, saving later. Which ultimately has put our maturity at an all-time low, and our debt at an all-time high.
1. Don’t go to higher education unless you have to
Sure, if you’re training to become a lawyer, doctor or rocket scientest, then yes, go to university and a good one at that. But otherwise, and this goes against everything you’ve probably ever been taught in school, there’s probably no need for you to go. Save yourself a huge amount of debt! If you want to be a writer, a baker or something else entirely, avoid the three or four year degree. Look instead for a college that offers certification in your potential field.
2. Spend less than you make, it’s simple
It sounds obvious, but for some this can be harder than you think. Act your wage. If you have to buy it on a credit card, you probably don’t need it. If you want a new car, save… Cut costs and use public transport until then so you can pay off a larger sum, or all of, your new car cost.
3. Save 10% of your monthly income
Do you remember Richard Gellar lecturing his daughter Monica in F.R.I.E.N.D.S. for always remembering to save 10% of her income into savings? That’s right, he had a point. Every month, and it doesn’t matter if it’s AED 500 or AED 5000, put those savings straight into a separate account and save, save, save!
4. Make debt your first bill…
…After your essential bills of course, like rent and savings. Once all of those are paid, make a habit of putting paying down debt as your first priority and reduce your other expenditures.
5. Don’t use credit cards for everyday purchases
Unless you’re using your credit card to save up rewards or miles, and are very sure you can pay it off each month, do not use your credit card for everyday expenses. If you must have one, keep it for emergencies. The more you put into savings and your emergency fund, the less you will be required to depend on credit cards and you’ll be able to cut them from your life entirely.
6. Stop paying for stuff you don’t need
That gym membership you don’t use? Get rid. Cable TV you barely watch? Get rid. Concerts? Don’t go. Stop paying for all of that extra stuff. Learn how to shop cheap, go to thrift stores for basic needs like kitchen utensils, furniture or clothing. Head out for a run instead of going to the gym, or use a yoga home video instead of paying for classes.
7. Never buy a new car
Every new car approximately loses its value after 4 years, for some reason. And so, be the person who buys the 4 year old car that’s perfectly fine and in great shape than the person who’s spent 70% more than you.
8. Save what you don’t spend
At the end of every month, if there is money left from your salary, move it to your savings!