Managing cashflow for young individuals
Lewis Thomas • February 1, 2023
Managing savings & minimise spendings for young individuals .
As a young individual it can be difficult to manage and save money. There are countless expenses presented to individuals that when managed poorly – are not financially viable. However, there are ways to engage in these activities responsibly and minimise the damage to the bank account. It comes down to self-control, healthy habits, organisation and finding a sustainable balance.
Common examples can include:
- Eating out/ordering in
- Online shopping
- Parties/events/clubbing
- Travelling
- Gambling
- Buy now pay later options
- Online in-game purchases and more
For young individuals who want to save money fast, it is easy to fall into the trap of setting a goal to save excessively by living a very strict lifestyle, burn out – and give up. It’s also common for individuals to get comfortable with their savings and adopt the carefree attitude where they do not track any expenses or set goals. This is NOT economically viable. It is crucial to find a healthy and sustainable balance that allows individuals to enjoy events occasionally whilst still being able to save simultaneously.
Ways to minimise excessive spending.
- Set spending limits – and stick to them! Keep your savings in a separate account not easily accessible to prevent taking out extra money, especially during nights out, social events, while gambling etc.
- Keep records – it is very easy to lose track of how much you are spending. Especially using an online bank account paying by phone or card as opposed to using physical cash. Keeping records will show how much you actually spend and help adhere to your spending limits.
- Be organised, plan ahead and research – There are many examples where planning will help you save money such as comparing flight, accommodation and booking services when travelling, planning meals for the week to avoid eating out, organising carpools and designated drivers to save on fuel & taxi costs etc.
- Save eating out/ordering in for special occasions!
- Learn your spending habits. Online shopping, in-game purchases & buy now pay later options are intentionally easily accessible to attract the buyer. Ask yourself ‘can I really afford this?’ Before making any online purchases.
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