Steven Dela Cruz
Isn’t it awesome to be part of the millennial generation where the world accepts you as a young mind who carry an influence even through social media? I mean they know that Millennials like us are spontaneous, carefree, adventurous, and innovative (we love to break rules!— well in a good way).
When it comes to our job, they say that we are jumpers — we get bored easily and quickly look for new things that will excite us. Read from an article on Facebook that our generation learned the value of living life to the fullest (traveling or doing things that you love while you can) yet are cautious about our future, our spending, and our savings.
Indeed, we are awesome! It is said that this is because we have learned so much from the generation who came before us — the generation X. Just like you guys, I’m living the principle of You-Only-Live-Once (or YOLO) by traveling and creating impact in my community while I still can but at the same time, still concerned about my career and a steady stream of hard-earned paychecks.
Because yes, we are making money but we don’t plan or expect to work for money forever. Someday we will raise our own family or retire. I’m glad to be sharing to you my financial practices that enable me to support myself, provide my share of the family expenses, travel within the country and abroad, and buy things I want randomly.
Be a Banker– I have been working for 4 years now, have I saved enough money? No! because I did not realize the importance of saving money until I realized that I’m turning 30 in just a couple of years. Having a savings account will give you second thoughts on spending aimlessly when you receive your salary. It will make you eager to add more money to it because it feels good to see that your money is growing and that you’re finally being a responsible adult!
Tip: Open only a bank book, no ATM card. Having an ATM card for your savings will make it so easy to withdraw money when you feel like you’re in a tight financial situation. By having a bank book, sometimes, you’ll feel lazy going to your bank.
Also, think about it. When you frequent the bank with so many withdrawals, the teller will know you as someone who is always “broke – withdrawing kind of person”; withdrawing the money he deposited just a few days ago. What a sham!
Identity Crisis – No, this is not about you. It’s about your needs versus wants. Do you actually know the difference? Needs are your basic necessities like food, shelter, and clothing. Wants are the things that are opposite or you can do without. So before buying anything, identify first whether it’s a need or you only want it. Through this, you can avoid overspending.
The 3-day rule – Talking about needs versus wants, this is also another technique in budgeting. Do you have that guilty pleasure of buying this stuff that you came across the mall while window shopping but not sure if this is a want or a need? Have a 3-day rule instead!
To avoid impulsive buying, let three days pass before you buy that thing you thought you like. After three days, and you still think about that stuff, it’s ok to buy it knowing that it’s not impulsive anymore. But after three days and you lost your desire of buying, then you don’t really need it or even want it that much, and you get to save a money!
The Pizza Party – Have you tried eating a whole pizza without slicing and think you’d be able to finish it? I think yes but it left you bloated. This is the same with our finances, you shouldn’t be eating your whole paycheck spending on unnecessary things. Why not plan first what to do about it.
This is always a famous advice in financial management, divide and save. Get a percentage of your salary to go to your savings/investment or bank account automatically whenever you receive your pay. The remainder will again be divided for your expenses and small treats for yourself.
By dividing your finances, you’d be able to address all the financial need of your life and it won’t leave you broke before your next payday.
I’m a commoner – In the UK I think your social status is important before you marry a royalty right? Your lifestyle as a royalty and a commoner is important especially on how you carry yourself and how you live.
Same with you financial lifestyle, if you know you’re a commoner, spend like a commoner and don’t social climb beyond your credit limits. This will just cause you so many debts and headaches. So please, stay with your status quo and stop impressing people by your fancy material things. Remember, You Only Live Once (YOLO), and when you die, your fancy proud things will be left here on earth. Don’t spend too much for fancy. The best things in life are free!
Be a Royalty – In contrary to a commoner, you can also be a royalty sometimes. Don’t just work, save and repeat. That would kill you too! Learn to sometimes treat yourself through traveling or buying that thing you’ve been wanting to buy.
Plan things up, if you really thought you want that action camera, save money to buy it and best is wait for a sale instead of impulsively buying it through installments. Installments, even if they say it has less interest, may get you in trouble too. What if you have an emergency expense for a month but you’re still paying for an item? That will lead you to danger darling.
Treat yourself some time to break the monotony of working, saving and repeat lifestyle. By doing this, you’d be surprised that you are actually financially capable of buying things without hurting your savings. You’d learn to wait for things that sometimes are worth saving money. Lastly, you’d be inspired to save more because you learned it and you know you just did it!
Mark Zuckerberg – The owner of Facebook took risks and now he just built an empire. I’m not telling you to build another social media platform, but be like Mark.
He has the spirit to break beyond his box and dared himself to reach his dream. If you are dreaming of being financially free and capable, dare yourself to invest in mutual funds or business.
Read also that by doing this, you’d be able to grow your money aside from waiting only for your monthly salary. By investing in funds or business or other money-growing strategies, you’d be able to multiply your money.
Yes, it’s good to have a bank account, but ideally, it’s better to invest your money to funds or business because it grows a bigger percentage compare to banks that can only give you 0.something %. Ask someone or even your bank on how they can help you grow your money through business and investments.
Bottom-line: Some people might look down on us because we are the millennial generation, that often has a negative connotation. However, while we are still young, we have to think about our future and be intelligent in planning which includes our finances. By doing this, our generation can be successful. This contributes to the future of our future children, family and even to the country.
Your finances Only Live Ones!