How to Be Strict With Money, the Millennial Way

Photo by Razvan Chisu on Unsplash
Is there a best way to save money and earn interest? You probably have this question in mind when it comes to saving up. Do you have an idea on how to make your money grow fast but are feeling stuck on how to start building your savings plan?
This is just one of the many things you have to consider on how to build your savings fast.
1. Know what exactly you are saving for.
Money is a precious commodity. Certainly, you wouldn’t want to risk making huge financial mistakes in the long run. You have to consider a lot of factors such as the impact of inflation on savings. In case you are not aware, the inflation rate in the Philippines is constantly fluctuating. In one year, the purchasing power of your PhP10,000 deposit could lessen if the prices of goods and services increase because of the inflation rate.
So ask yourself: What exactly am I saving for? Is this for a short-term financial goal, like buying a new smartphone? Or is it a long-term one, like having enough money for a business? Once you identify your specific purpose for saving, this can serve as a budget motivation. Also, use your purpose to choose between savings and investment, i.e. savings are for short-term money goals, while investments are for long-term financial goals.
2. Plan how to save.
Knowing why you should save now gives you an idea on how you should save. For example, you want to replace your car with a new model. If you know that your salary is not enough, find a way to save money for it, as early as now. Consider this a short-term financial goal. For long-term goals, like setting up a good emergency fund for your family, put together a well-detailed plan on how to get out of financial trouble in the future.
Photo by Nik Shuliahin on Unsplash
3. Do not compare your saving goals.
Sometimes, you might feel envious if someone you know is already achieving financial success. If they are also talking about their awesome financial hacks, you might get easily swayed and think your financial plan is not working. Restrain yourself from comparing your savings goals to theirs. What works for them may not necessarily work for you. Savings, just like insurance, is designed to suit your personal financial needs and goals. Once you’ve come up with your financial plan, stick with it or revise it, based on what works best for you. If in doubt, seek out a financial advisor who can help you gain clarity on your financial decision.
4. Know yourself.
Are you the type who celebrates victories and losses in life by spending money? If yes, figure out how to focus on saving and how to be strict with your money. It is okay to treat yourself every once in a while, but if you buy a new gadget for every milestone in your life, you will likely lose money in the long run. Stick to a money-saving mindset and commit to avoiding buying things you do not really need.
5. Keep learning, but be consistent.
As time goes by, you may learn more creative ways to budget. This is important in helping you stay updated on how to manage your finances better. On the other hand, this could also get overwhelming and confusing. You might end up trying and changing different financial plans. In the end, you might not get anywhere with your financial goals. Resist the urge, and do your best to stick to and work your way around your financial plan. This way, you dol not end up wasting your time, money, and efforts by jumping from one financial strategy to another.