I have never considered saving money, let alone entertained the rainy day analogy. All I cared about was accumulating clothes, feeding my shoe fetish, eating at trendy restaurants and hanging out at the coolest spots in town. I only started seeing the importance of saving and investing in financial health when I was 21 years old, and that was only after reading Robert Kiyosaki’s book ‘Rich Dad Poor Dad’.
Kiyosaki’s novel highlights the importance of financial independence and building wealth through investment and saving. He suggests that we cultivate a habit of careful spending and the earlier money is saved, the greater opportunity it has to earn interest. Below is a list of easy steps that millennials can follow to save money.
1. Save before spending
Saving money isn’t simple but it is totally worth it.
More so,saving when you are still young. If you don’t have a savings account already, open one. Absa has a MegaU debit card account for under 19s which has zero monthly service fees. You can enjoy banking for free.
Other banks such as FNB and Nedbank offer tax free savings accounts (Tax-free savings are a great investment.)
Also, a Savings goal keeps me going because I know exactly what my Savings vision is. Also, having a Savings goal helps you ascertain how much you should be saving every week or every month.
A budget helps you keep track of where your money is going. When creating a budget, it is important that you prioritise necessities, but the most important aspect,is sticking to your budget.
3. Live within your means
I have noticed that Generation X & Y, especially on social media, do not live within their means. They want to be seen at the coolest places, wearing designer clothes and drinking the most expensive drinks at clubs. Sure, everyone filters their lives on social media making it look glossier, and way more interesting than it really is. However, instead of getting yourself in debt trying to look rich, give yourself more time on the grind, and enjoy true wealth later on.
Don’t be like *Jessica with R6000 debt after opening a clothing store account and have the only reason you opened the clothing store account, was so you could look as fashionable as your university peers.
4. Carry a small amount of cash with you.
I am an impulsive spender and when I have money with me I end up buying things I don’t need. Carrying just enough cash for the things I need has helped me save tons of cash. I am no longer tempted to spend money on unnecessary goods.
5. Open an investment account.
Many banks offer tax free investments for young people and you are guaranteed to get profit from your investments. Find out which bank offers the best rates and is more suitable for you, then go for it.
Rich Dad, Poor Dad gives one a deeper understanding of building wealth through investment.