Importance of saving money at a young age
As was discussed during the webinar, the best time to save money is as early as possible as it will allow an individual including me as a student to enjoy the money that I have saved and worked hard for in the long run. Also, managing personal finance including saving money is 80% behavior and 20% head knowledge. If I don't plan and commit to doing anything that will improve my finances then my financial state will not also change. In that instances, I will not be able to buy what I want and needed as I don’t have enough money to be drawn from my wallet or bank account. Therefore, given that my current status doesn't require much obligations and also doesn’t earn a lot other than my allowance, it is still important to save even in the small steps as well as gain the target goals while determining the reasons or purpose of saving money.
Tips on how you can manage your money sensibly
With regards to the webinar, some tips were given during the discussion on how an individual or a student of business can manage money sensibly. It is noted that in order to manage finances, it is important to be aware of the current financial situation and be sensible enough to know what is too much or enough in terms of spending so that there will be no regrets or dilemmas in terms of where to draw the money in case of emergencies. Moreover, it was advised for students who have no source of income besides allowance to find some side hustles and when they earn, they need to learn the art and skill of saving, and in order to save it is important to know that it is based on the choices that we make, how we spend, and etc. It is all about how we conduct ourselves when we have some money at hand. Furthermore, there are some expense management styles that were cited in the webinar and one of them is to monitor each expense that we acquired. With that tip, I think it will be helpful for me to save money as I know where my money goes and be wiser on spending on something that will benefit me while not completely deleting things or restricting myself from something that I deserved. Therefore, (1) Honestly assess your current financial state, (2) Have a bias towards action, and (3) Know your clear why are the basic tips or approaches to attain wise financial decisions.
Key elements of saving that you might consider using starting today and in the years to come
As someone who is currently doing side hustles or freelancing jobs besides my studies, it is important to start saving even in small amounts in order to have some finances in case of emergencies or when I need something, I will be able to provide it for myself coming from my own pocket. However, I learned that during the webinar, saving is not enough as I need to also consider some approaches that can help me to be wise in handling my finances. It is also important to build a budget and strong saving habits because designating money for each specific purpose will allow us to know where our money goes. We will be able to keep track of our expenses and if ever it already exceeds our financial capacity then, I think that’s the time to review it and lessen the amount we spent on. Moreover, these approaches allow me to assess my current financial state and my obligations as it also affects me or sometimes hinders me from saving money for myself or allot enough funds for my savings. Although I don't earn that much with my freelancing, these tips that I learned during the webinar will allow me to look at my actions and behavior in spending as well as how I save my money. Whether I am using the money that I worked hard for on something that is useful or am I just wasting it on useless things. Therefore, starting today and once I have a stable job, I am hoping that I will be able to check my behavior and apply these theories to action where I can better save, continuously monitor my finances, and attain financial growth.