Saving money as a young person may seem daunting and a massive undertaking, but it is possible.
Generation Z or Gen Z are individuals who were born between 1997 and 2012. They grew up on the internet and love social media.
Members of this generation are now in the workforce.
With the cost of living crisis, it is crucial for this generation to learn to save and invest.
Here are some tips to get started:
Create a spending plan
This is a simple and self-explanatory step. A spending plan, sometimes known as a budget, is a breakdown of your monthly income and costs.
It may help you understand how much money is being allocated to both required and discretionary spending, and you can make changes as you see appropriate.
You can have a lot more in your pocket if you simply don’t spend it on frivolous things in the first place.
Prioritise the important things first, such as paying rent, payments towards your car and groceries.
It may be difficult to cut down on things such as going to restaurants often or buying items to spoil yourself.
Gen Z should have a clear idea of what investing is and why it is important for securing one’s financial future.
Inform yourself about what investments are available to you and how you can manage them.
Divide your savings between investment options that provide short-term liquidity and investment opportunities that offer long-term gains.
Ask for assistance
If you get overwhelmed, don’t be afraid to reach out and seek professional financial help.
This can be in the form of a financial advisor.
A financial advisor assesses the financial planning needs of individuals and helps them with investments and insurance decisions.
They do estate planning for clients and help them with their short-, medium-, and long-term financial planning goals.