In this time of a coronavirus pandemic, everyone seems to be so critical with their decision making, especially on their finances. The air of uncertainty is always in your mind, making you worry about the things that you used to not worry about before the “new normal”.
For young professionals, who have not yet established their career, but are hoping to have a good start in their current field, balancing your finances in the middle of a crisis can sometimes be overwhelming. They are in constant search online for money articles in London.
Here are five ways on how you can avoid struggling with money as a young professional:
Start small. Most of the time, people are so focused on savings – how much they are supposed to save, and for what they are saving their money. However, what the young professionals fail to see are the plans on how you could make those savings happen.
To do this, you must be very consistent. And to master consistency, you have to start from the small things and work your way out to the bigger ones. If you start a habit of saving small amounts and schedule how you are going to set aside the money for your savings, this will train your mind and build self-discipline which you will make good use of when you are ready to start saving bigger amounts.
Create your monthly budget. Your mind as a young professional is normally preoccupied with the expenses, and how much money you are going to spend, and for how long you are going to tighten your belt until the next payday arrives. Break this habit already and start creating your monthly budget!
Identify the necessities that you need to pay for every month – your bills, your rent, your food, transportation, etc. Assign an approximated amount for each of those items and make a good estimation of how much money you are supposed to spend on those. Once you’ve identified your amounts, tell yourself that these are the things that you need to allocate money for before anything else. Being always mindful of your budget at an early stage will train you to handle bigger financial responsibilities in the future.
Stay away from the “big four”. At a stage where the young professional is in, there are some expenses that you justify the need for, simply because they help you get by with the daily grind of work. When you have a lot of tasks on your plate, you tend to order in fast foods, just to save time for a lunch break. Before the lunch break ends, you need to light a stick or two, before going back to your station because of the constant work pressure.
And then after work, you need to unwind with your friends for the weekend, spend your mobile data to get in touch with your peers on social media, and then meet up for the weekend alcohol or sip some overpriced coffee from a posh coffee shop.
Cutting back on those expenses a little can make a huge difference in your financial comfort. It would be easy for you to create some room for your budget if you find cheaper and more cost-efficient options – try to set up a package internet plan especially now that we are working from home in the new normal. Go to your coffee shops a little less frequently. Save those bucks by making your own coffee instead.
Create your “buckets”. At work, you are trained to compartmentalize. You segregate every problem and put them in their right bucket and avoid having them from getting mixed up with each other. You deal with your problems at work, and you don’t bring them at home, and vice versa.
The same thing should go with your finances. Once you have set up your financial goals, try to achieve them based on their level of importance. Allocate a specific budget for each and never overspend or realign the money that you are supposed to spend on another item in your separate bucket. This way, you will train to be a more disciplined spender. You do not want to end up borrowing money every time because you do not have a clear picture of how you are going to spend your money.
Start investing. The word literally means achieving a profit or material result by putting it into financial schemes, shares or property.
In investing, time is of the essence. When you are getting health or life insurance, your monthly premium is lower when you start from a very young age, as opposed to getting it when you are already a bit older and the health risks are a lot higher. Making savings. And the sooner you start, the longer your investment will have to mature and gain more. Aside from that, you also learn how to properly invest in other financial benefits along the way. When you’re already financially educated in investing, it would be easy for you to make big decisions with a low risk of losing your money and more probability for profit.