I’m a 20 something millennial and I realized a lot of my peers seem to very little or no concepts of savings or financial knowledge. They spend at will on whatever they fancy and choose to go for the most luxurious goods. They plan very little for the future and they are just living paycheck to paycheck.
Of course there are those who have the right mindset and start early to save up and grow their savings with time. If you are not there yet, don’t worry and don’t be disheartened. There is time so just do your best now. In fact I want to challenge you to start now and take the first step in securing your future.
I am sure you all heard it before, “Aim to at least save 10% of your monthly income, more if possible.” But why is it so hard to do?
Habits and Consistency
Here’s what I believe, to me savings is about building the right habits and being consistent. You can’t start saving for a month and then decide that you did such a good job so you spent everything that you’ve saved. Well, of course you can but then you’ll be back to square one.
I’m not against spending money but only when it’s a necessity or when you have excess income. In fact recently I went to bought some games on Steam, (Yes I still play games, some games are really good.) but I waited till the autumn sales where everything was 50% off. I also set aside a sum for this and made sure to keep within and not overspend.
The key is to make sure as time passes, your savings are growing and not decreasing. Spending more than what you earn is a sure way to get yourself into big big trouble.
The simplest way to begin saving is to follow a budget. What I want you to do is to set up a budget on how much you intend to spend and save per month.
Now be clear and precise on the numbers for the different kinds of expenses. The amount for your travelling, food, savings and other areas should all add up and be the same amount as your income.
Now the challenge is, for 21 days you need to keep within the budget you set for yourself.
Why 21 days?
Because most habits take 21 days to form so we are aiming build better habits. After 21 days it will also be close to the new year. So it’s the perfect way to begin 2017!
Let’s look at where you belong
- If you haven’t a clue on how much you spend every month
Now is a good time to find out.
- If you know how much you spend per month but struggle to keep within your budget.
Your challenge is to continue to try to keep within your budget while doing your Christmas shopping! If you find trouble trying to consistently keep within your budget, check out this great article on cutting expenses from Jim@RouteToRetire
- If you can consistently keep within your budget, give yourself a pat on the back!
Keep up the good work and let’s aim even higher!
Your challenge is try to start a side hustle and see if you can grow your savings. Not sure where to begin? FinancialPanther has some pretty cool ideas on side hustles that’s making him money while having fun at the same time!
Give yourself 21 days and monitor your progress. For me, I’ll use this challenge to see what side hustles I can begin in my free time. More than 20 days till the end of the year, I should be able to start on something.
At the end of this challenge I want you to remember that, it’s about progress and not perfection. We get better in small consistent steps. So let’s build up the right habits, let’s take on the challenge and let’s work towards beginning 2017 with a winning start!
Let me know in the comments the problems you face when you first started to save and how did you overcome them? What advice would you give your 20 something self now if you could? Thanks for reading and have a great day!