MANILA, Philippines — While there are so many exciting opportunities that are made available for young professionals these days, it doesn’t really follow that a good salary will lead to better financial decisions.
With temptations practically everywhere—online, mobile, in real life—a young professional, often a millennial, is easily subjected to a life of “wants,” which they confuse with “needs.”
Needs such as “I need to buy that new pair of sneakers because it’s 70-percent off,” “I need to drink designer coffee every day because I can’t live without it,” “I need to get new makeup because of freebies being offered this month.”
The most common rule when it comes to being financially mature is “live within your means”—and even if you get promoted or you suddenly get a windfall of money, this should not mean spending more rather saving and investing more.
Here are three pieces of advice that millennials can follow.
Setting a budget
Do you ever find yourself short of cash a week before the next payday? Unless there’s been an emergency, the reason for is not having budgeted well.
Truth is, you have to allocate money to pay for your monthly needs. Set aside for food and transportation, phone bills, and other important expenses first before allocating extra for leisure like shopping or dining out.
Developing the habit of saving
Appreciate the value of saving while you’re young. Setting aside P1,000 each month will give you P12,000 at the end of the year—or more when you increase your monthly savings.
Think of how fulfilling it is to have savings in your 20s rather than trying to make up for lost time when you’re older. Remember, as you get older, the more responsibilities and expenses you will incur. So it’s best to start saving while you have extra money than when you already have your own family to support.
Making mature investments
This doesn’t include designer bags and shoes. Remember that no matter how expensive, their value still depreciates the moment you use it, so don’t fool yourself in making this as an excuse.
Use your hard earned money in actual investments like insurance, UITF, a business or a house, among other places. Depending on your capacity to earn per month, your credit history, and the purpose of your investment, you can choose one that is line with your future financial plans.
If you feel that it’s a house, then search in Cavite. There, you can make a mature investment with Lancaster New City this early with its affordable and quality properties. Imagine investing in a house in Cavite instead of spending on makeup, clothes, trips, gadgets etc.
You can then decide whether to live in, rent or sell your Lancaster Cavite house in the future. You have completed payment of it before you hit 40!
Then you truly say you enjoyed your hard earned money and not become slave to it.