Your father’s generation said Gen Z spends profligately, cuts short, bites long, doesn’t know how to save? The fact that…
Gen Z is the generation that has a free and liberal image and is not afraid to spend money on themselves. This makes them often labeled as wasteful spending, spending money indiscriminately.
However, statistics from Afterpay also show that up to 75% of Gen Z are investing, doing business and are interested in saving money. That means Gen Z is very conscious about financial management and understands the value of money.
Many young people soon have a sense of saving and investing to achieve their dream of financial freedom in the long run.
Invest from the smallest amount
Thanh Anh (19 years old, student) revealed: “Many people think that saving a large amount of money is worth it. The more you invest, the more profit you will earn. I think differently. The investment problem is not just about earning or getting how much money, but also about how to change your thinking and habits. You have to learn to appreciate and save from the smallest coins, then optimize them and experiment with small and medium investment channels.”
According to the Gen Z girl, one of the most basic and important things in saving is understanding the time value of money. This means that 10,000 dong today will be worth more than 10,000 dong a year from now.
The sooner you can leverage your money to make it profitable, the more you will protect it from inflation and retain its value.
Because he just graduated from school, Thanh Anh’s salary is only about 7 million. After deducting living expenses, she saved 1.5 to 2 million VND.
The way Thanh Anh chooses when he only has a small amount of capital is to deposit a small amount of money with a reasonable profit, so that he can both deposit and withdraw money flexibly for different purposes, idle money is still profitable and can can send from small to very small amount – only from 10,000 VND.
With Gen Z, saving takes a lot of discipline
With so many lessons in the media about financial management, Gen Z understands the need to accumulate for times of trouble and uncertainty. Therefore, in addition to investing from small idle money, they also know how to balance finances and promote savings.
According to The Balance, saving is sometimes difficult. In life, there will be many unexpected situations or illnesses that affect our savings plans.
Making your own drinks instead of going to the store can save you a fair amount of money.
If you’re having a hard time saving, try to spend less each month. This month you can try to use 1-2 million less than last month and repeat to create a habit.
For example, you can make your own drink instead of buying a cup of coffee outside. You can also mix & match items to have an eye-catching outfit instead of frantically shopping for new items.
One of the simple and effective ways to save money is “Pay yourself first” (Pay yourself first). More specifically, you should set up a savings in your total income and the rest to spend. We will be disciplined to spend what is left of our savings.
Thus, discipline will help us to increase our savings and the Acceleration of Wealth and our property value will have a chance to grow rapidly. For example, Thanh Anh, she has developed the habit of accumulating one million dong per month. Although the amount was not large, Thanh Anh had a steady and profitable savings deposit.
Simply put, this method helps us to build discipline by saving a certain amount of money every time we pay a certain bill. This method has been proven over time and has had a definite impact on how we save.
One of the basic rules for determining the savings-to-income ratio is age. If you’re in your 20s, your savings rate is 20% of your income, and when you’re 30, increase your savings to 30% of your income. This is a general principle, so depending on the conditions – capacity and financial plan, each person will specifically determine the ratio of their savings to their income in each different period. Gen Z has the advantage of being young, so their savings journey is long and not too stressful.
Don’t forget to set a savings goal for yourself over time, and reward yourself when you reach it.
Minh Kien (22 years old, Coder) shared: “TBeing frugal doesn’t mean forcing yourself to be overly frugal. The important thing you need to learn is to develop a regular, disciplined habit of saving and saving“.
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at Blogtuan.info – Source: cafebiz.vn – Read the original article here
