A recent research this year by the Money Advice Service, conducted by the University of Edinburgh Business School, presented that although 69% of young adults have financial goals, most of them do not have a plan to achieve them. Many do not realise the importance of saving and spending wisely until they are needed; but by then, it may be a little too late to start. A simple decision to begin taking note of current and future expenditure now may lead to better financial planning and a start to fulfilling individual financial goals. Here are a few reasons why you should start tracking your spending today:
Small Expenses Go a Long Way
Does your daily routine involve a cup of morning coffee from Starbucks? Well, if it is just caffeine you need, why not substitute that with some quality instant coffee from home? Better yet, if you can live without it, just skip that morning beverage altogether! Here’s an infographic on what a daily cup of Starbucks Cafe Latte could have bought you:
I don’t know about you, but they are quite substantial amounts to save on for me. Moreover, this is just one example. I’m sure there are many more areas that could be saved on, and who knows, these savings could just go into your future housing, car and/or investment funds.
Good Habits Will Pay Off
For those who have yet to start earning an income and be weighed down by financial obligations, this may not seem to be a big problem; but as for all good habits, it is always better to start young/early. As we enter the corporate world, our income would increase, perhaps accompanied by the application of more credit cards, and spend on higher value items. It will significantly increase the chances of overspending if we do not have a clear idea of how much we can afford and what we are buying. Not only does spending beyond our means increase our financial burden, but it may also jeopardise our credit standing if we fail to repay our debts. This may have a large impact in the future when we are required to count on loans to finance any opportunities or needs.
Better Financial Awareness
In relation to the previous point, having a clear awareness of financial positions can enable us to make swift and wise financial decisions. Opportunities can come by anytime with a short expiration date. To be abreast of your financial abilities and liabilities can assist you in making critical decisions and capitalise on available opportunities. In a volatile economy, you will always be ready to ride the rising trend when it comes.
After all that had been said, it is time for you to start taking charge of your finances. Every skilful captain needs a capable aide, and one is waiting for you in your nearby app store. Take a look at Seedly, your user-friendly financial organiser, and start your collaboration today!
Seedly helps to monitor your personal expenses through a convenient mobile app, tracking your spending habits. This includes your transactions for investments. We currently serve over 8,000 users and growing in Singapore and are supported by NUS Enterprise, TOP 9 DBS HOTSPOT startup and East Ventures. We aim to become the #1 personal finance management app in Singapore and the region.