We live in a culture of hyper consumption. While this is certainly boosting the world’s service and manufacturing economies, it’s bleeding much of the younger generation dry. Learning early in your career to discern between need and want, fashion and fad as well as savings and investing, will go a long way in developing a sound financial future.
Companies have become brilliant in marketing products, via social media, mobile campaigns and websites, to the under thirty demographic. While the discretionary spending ranks with retirees in this demographic, savings is the lowest of all age groups. Each new technology product spawns an abundance of accessories. This is a generation that is more technology focused than any other. Technology is used professionally, socially and financially.
Follow these basic strategies for keeping more of your hard earned cash and begin to have it work for you in the long run.
Curbing daily spending on incremental items can really add up to some serious money. Look at your daily or weekly spending habits and annualize them. For example, that daily cup of coffee for $3 becomes an annual expenditure of over $1,000. That’s a handsome sum. Can you cut that in half or by a third? If that’s the spending habit you’ve elected to break, reward yourself by putting that same sum in a savings account each week. Set up an automatic transfer with your online banking program and you’ll be stunned at how quickly those sums add up.
Is clothes shopping one of your weaknesses? Check out the great fashions, quality and value at NY & Co. Higher end department stores might provide luxurious surroundings, but once your purchases are in your closet, it doesn’t matter where you purchased them. What does matter, is the value you received and the amount of cash you saved in the process. Again, set a clothing budget lower than what you’re spending now and pay yourself the difference each month.
Follow these strategies and be mindful of daily spending for both consumable and non-consumables. Pay yourself first; in the long run you’ll be glad you did!