Are you approaching 30? This amount should be in your savings account



Are you one of those who focus on “You Only Live Once” (YOLO) and forget about “saving bread for May”? Believe me, you are not the only one!

Most young adults have problems saving and controlling their budget

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Moreover, some do not even maintain an order in their finances or do not know how much money they devote to certain aspects of their life. In some cases, if they realized how much they spend each weekend, they would be perplexed.

The truth is that some financial experts have given specific advice to achieve economic stability and mention that one of the goals is that any worker reaches his 30 having a saving equivalent to six salaries. It is not a joke. And although this advice was given by Kelly Smith, a finance specialist, based on dollar salaries, it is possible to apply it to the currency of your choice, based on the amount the worker currently earns.

But what is the use of raising so much money?

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Believe it or not, having an emergency fund is extremely important, because in case of an accident, of losing your job, any illness of yourself or a close relative, or any other emergency, you will be able to react promptly, without distressing you for not having the Money needed to respond.

So, if you are one of those who do not make your salary last more than a week, and you are extremely far from the amount that experts advise to have saved, it is time to take action on the matter. Start with these three basic practices and you will see that the situation improves.

Organize your expenses

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Do you know how much money you have available after canceling all your fixed expenses? That is the money you could save if you were a robot and had no social life. Quiet, that’s not what we ask. The most advisable thing is that you organize your income and expenses so that you know how much “available” money is left after paying your obligations (services, rent, transportation, food, etc.) and decide how much you will save and how much you will allocate to “the expenses of life ”, As many call them.

Identify ant expenses

They are those that you do almost without realizing it, thinking that they are a small amount and that will not have an effect on your budget for that same reason. However, if we add everything you spend in a month to buy cigarettes, in the office candy machine, in soda during your lunch, among others, you would see the true amount of money that you are taking away.

The idea to realize is to take action on the matter. You do not necessarily have to eliminate them, but you do control them, and know in advance, how much money you will devote to that.

Separate savings at the beginning of the month

As soon as you deposit, your first move is to separate that 5% or 10% of your salary and transfer it to your savings account. This will allow the rest of your expenses to accommodate the available money and avoid spending more.

When we see the total cash in our account, we often perceive that we have more than it really is, and we proceed to spend on things that were not planned, which does not always end well.

Another recommendation is that you manage two different accounts: one dedicated to receiving your salary and your regular expenses, and another where you only put your savings. This will help you not to continue taking “borrowed” money, in addition, you will see that the accounts destined for savings give you an attractive interest rate and charge you if you exceed the number of withdrawals per month, which helps you not to go out of line . That is, it is not necessary for both accounts to be from the same bank or financial entity.

What to do when you already have savings?

Make them grow. For that, you can use different tools, highlighting the fixed deadlines. These let you know from the beginning how much you will earn, but it is limited to the interest rates offered.

Finally, if you see that you can easily save 5% of your salary and want your savings to grow faster, modify your budget and choose to save 10%. The idea is that you are comfortable and do not feel imprisoned or limited, but at the same time, keep track of your finances.

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