As we grow older, saving money becomes increasingly difficult.

Of course, many people desire to make more money, but in the beginning stages of making more money, if we are not careful with economising on our spendings, we may soon not have enough for a rainy day or when times are tough. Its better to prepare for a rainy day eve when things are going well. 

As adults, we are burdened with various expenses that reduce our purchasing capacity, particularly as we begin to shoulder more and more financial responsibilities.

It is absolutely essential that you save money to address emergencies or to simply fulfil a long-term dream. These are a few tips that you can use to save money as a working adult:

1.    Keep Track of Your Expenses
Managing your expenses becomes much easier when you keep a record of all your expenditure. One of the easiest ways of doing this is making a list of all the activities that you spend money on. For example, divide your expenditure into taxes, health, grocery and other expenses. You can save money by understanding the areas where you have been spending a lot of money. This also helps you redistribute your finances in a much efficient manner. 

2.    Maintain a Budget
Creating a budget helps having an upper cap on your expenditure. As a working adult, when you receive your paycheck, the first thing you should do is allocate appropriate funds to different areas of your expenditure for the upcoming month. This helps you get a fair idea of how much money you can save.

3.    Make a Goal
Create long-term and short-term goals which can motivate you to save money. A goal can be anything ranging from the car you need to buy or the vacation that you have been planning since long. Saving money is much easier as your goals act as constant reminders that you need to save. 

4.    Plan Your Savings
It is always considered a good habit to first set aside the money that you wish to save and then create a budget from the remaining resources. When you separate your savings and expenditure right at the beginning, it becomes much easier to save money. It is a good habit to reserve 10-15% of your earnings earmarked as savings. You can then gradually increase this amount as your earnings grow. 

5.    Set Your Priorities
As a working adult, your primary goal should be establishing yourself and working your way towards complete financial independence. Although, it may be quite early to decide upon a retirement plan, one can always prioritize their expenses. Buying a house of your own may be more important that spending on lavish lifestyle items. Before you start saving religiously, you should first thoroughly understand what your financial goals are.

6.    Use Financial Tools
When you start making money, you should also keep a track of how you can maximize your savings. One can save their money in bank accounts with higher interest rates and avoid banks which charge a high transaction fee or offer lower interest rates. 
You can also invest in fixed deposits which can provide you with higher returns and also locks your investment for a certain amount of time which means you cannot withdraw your money under regular circumstances.

7.    Use Automatic Saving Tools
Most banks offer a feature which lets you auto-debit a certain amount as soon you receive your paycheck. It helps you deduct a certain amount initially which ensures that you are definitely saving money. This is a quite helpful tool, especially for a working adult who might get carried away on the first day of receiving money. 

8.    Invest and Grow Your Money
One can invest in securities, stocks and debentures for obtaining higher returns on their investment. One can avail these services to ensure that they have adequate returns when they withdraw their savings. This not only helps you save money but also obtain higher returns. There are also various saving funds and retirement plans which helps you reduce your taxes and hence lead you to save more money.

9.    Cut Down on Consumption
Our lavish lifestyle is one of the primary reason why saving becomes much more difficult. One can have simple meals and shop only when necessary. One can also walk short distances and make use of various promotional offers and discounts which can help them save money.

10.    Clear Existing Debts
A working adult is generally under tremendous pressure due to the various outstanding liabilities. This not only hampers your saving but causes higher expenditure in the form of interest rates, penalties and other charges. Before you begin saving, you must focus on first clearing your debts to avoid future hassles. 

(Disclaimer : All these advice that we have shared are entirely our own and may not be customised to your situation. Do adapt to your financial situation and for further financial advice, seek advice from a professional financial consultant).

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Written by ​Abraham A.L

5th April 2019

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