As an independent woman, there is something comforting about being able to stand on your own two feet on many levels, financially being just one of them. The ability to, and the habit of saving money is extremely important.
Once you start earning decent money there is a desire to go and spend it all. You can indulge yourself for a little while, but then it is time to start planning for the future.
For young professionals this might be a hard pill to swallow, but there is no time like now, to start planning for your future. The ability to own your own car and home or to be able to travel and experience the world is something worth saving for and aspiring to as a young adult.
The rule of thumb is that “in case of an unforeseen circumstance” or that infamous “rainy day” we should all have 6-months worth of salary in our savings accounts. That’s a lot of money, I agree! However this is something to think about and to plan for. The easiest way to save money is to set-up an automatic deduction from your biweekly or monthly pay into a savings account. Now you are saving money without manually doing the transfer yourself every couple of weeks, and if it is moved from your day-to-day account, into a savings account before you see it, it’s as if it never existed.
I know it may be hard initially, but in the long run the benefits will outweigh the initial sacrifice. It will be more painful when you are living with mom and dad at 40 because you didn’t plan for your financial future!
Think about this scenario; you buy a coffee every morning on the way to work for $3. That adds up to $15/week = 60/month = $720/year. So imagine if you had transferred just $15/week into a savings account, you could have over $700 at your disposal.
Every dollar adds up and if you can get into a habit of saving money as easily as you spend it, you will definitely start to see the benefits of such a sacrifice. The best part comes from checking your savings account and seeing a nice, healthy balance in there. That alone is a great motivator to keep saving and set up a solid financial future for yourself.
The transfer can be a dollar amount like $30/week or it can be a percentage of your salary. Whenever possible, the more you can save the better, and of course you can always change the amount depending on your current circumstances.
Start with 5-10% of your salary if possible and add more when you can. Talk to your financial institution and find out what savings options are available. Trust me when I tell you, it will be worth it in the long run. Having financial freedom opens up a world of possibilities.