By Jhoana Paula Tuazon
ONE of the biggest challenges to millennials today is how to use money wisely, e.g., equal allocation for savings and expenses.
According to Bea Germaine Unas, a managerial accountant, doing so will just always be a matter of budgeting.
It seems to be difficult at the start but making budgeting a part of your life becomes easier as days pass.
“I believe that the start is the most difficult part, because it is usually the state wherein you don’t really have a specific intention to budget your money. But, after you have established your goal and took the courage to do it, your drive to budget and save will just come, as it becomes a part of your routine,” the 22-year-old former junior accountant of a Danish manufacturer said.
Unas offers the following tips on how to budget money, especially for young professionals who are just starting to do so.
Reality check. This will help you analyze your current financial status through the money you are earning, the money you are spending and why you need to manage and save your finances.
Goal setting. Once you have seen your reality, you can now be able to set your goal. In this case, your goal is to save money. Get the percentage of the money that you can save considering your net income.
Proper mind-set. For your financial management to be successful, you should always have a proper mindset. Having this will let you stay focus on your goal.
Organize your actual costs. It is good to sort your money according to your costs. Grab a paper and pen and list down the costs or expenses you incurred the past month.
Save before you spend. Remember that you have calculated the percentage you are to save. Make sure you have already done so so that your savings will not be compromised for miscellaneous expenses.
Be creative. Let saving money become a fun activity. Saving is not a burden but a chance to make yourself financially smart.
Try alternatives. Look at savings as a positive thought. Instead of you riding a jeep as a means of transportation, maybe you could try walking or biking. Doing so will help your physical well-being, too.
Avoid liability. A liability is deceiving: some make it appear you enjoy something now that could become problematic later. As much as possible, use your own money in spending so that you will not incur debt.
Level up to a long term goal. Continuous saving is the key to step up to a new goal. Do not be comforted with the thought you have enough savings.
Do not limit yourself in finding new sources of income and be open to opportunities that can help you to be financially stable in the future.
Invest. Your money today will not have the same value 5 to 10 years from now. Your expenses will increase as time passes but your income will not grow as fast as you would think.
Better start making your money grow: consult financial companies to help you in investing your money.
Unas also reminded millennials to always look forward to the future when budgeting.
“Make saving as a habit until it becomes a part of your system. This is because managing your money is not just for a current action plan but also for long term maintenance of your finances. Let your small savings today inspire you to save more every day.”