5 Spending Habits every Young Professional should have in their 2023 New Year’s Resolution

It’s 2023!

As the holidays officially come to a close, we’ll be honest: we spent A LOT of money during the holiday season. (and we know you did too!) Nothing wrong with spending to treat family and friends, a little self-care, and rewarding ourselves for all our hardwork in the past 12 months… as long as it doesn’t lead you to financial ruin!

As young professionals, we’re all too familiar with the term petsa de peligro and have become accustomed to the habit of spending like millionaires on pay day and tightening our belts before the next payroll. But what if we told you that, even as a young adult starting your professional career, there are simple lifestyle decisions that can help improve your money management?

Imagine this… Getting paid regularly, not worrying about bills or due dates, and best of all, minimizing your need for our petsa de peligro starter pack! Sounds like a dream, right?

 

Now that the new year is here, we’re putting on our ‘responsible adult’ pants by learning proper money management and including good spending habits in our new year’s resolution. 

We’ve done our research so read on if you want to know learn the easiest way to develop spending habits that’ll help you be financially responsible in 2023!

 

1. Track your expenses

Here’s a pro tip: If you don’t see where your money goes, it’s very easy to overspend!

So if you really want to start saving money, the first step is to know what you’re spending on and what percentage of your income goes into your ‘needs’ and ‘wants.’ You can do this the old school way by downloading free printable expense tracking template online or through a variety of free mobile apps. 

Once you’re more familiar with where your spending most of your money, you can then analyze what your non-negotiables are and where you can cut down to have enough money to put aside for your savings! When you get familiar with your spending habits, you’ll be able to create a savings plan more easily.

Just remember, don’t be too hard on yourself if your starting out. You’re creating your own expense and savings tracker – there’s no one way to do it and you can always make changes as you see fit for your lifestyle!

2. Follow a budgeting rule

Have you heard of the 50/30/20 Budget Plan? This budget plan was initially coined by American Senator and Harvard bankruptcy expert Elizabeth Warren as a way to save money and budget your money smartly. The 50/30/20 Rule suggests that you divide your salary (after tax) with 50% allotted for essential needs, 30% allotted for wants, and 20% set aside for an emergency fund or paying off debt.

Though this budget rule may seem daunting for most Filipinos, keep in mind that this budget rule was crafted for the western culture and caters to a different kind of lifestyle. But if you’re willing to try it out, Metrobank created a Filipino-friendly version of the 50/30/20 rule where a more realistic, flexible budgeting plan suggests that your income be divided into the following:

• 50% goes to essential spending with about 25% on mortgage or rent
• 30% goes to lifestyle spending or discretionary expenses
• 20% goes to financial priorities. This can include savings, investments, funds, and other financial priorities that don’t fall under essential spending.

 

3. Declutter your subscriptions!

As a  millennial, zillenial, or gen z living in the digital age, we find our entertainment online. We don’t mean to call you out but do you really need to have Disney+, Netflix, and Amazon Prime? How about Spotify, Apple Music, and Youtube Premium?

While going along with what’s new and what’s trending can become second nature, your journey to responsible money management will require you to re-evaluate. What shows do you watch from those apps? Which offers you better service? What can you live without?

Getting rid of paid subscriptions that you don’t use as often can rack up your saving in the long run!

 

4. Cut back on food deliveries

Now that we’ve been working from home for the last few years, we’ve developed our own daily routines. If you’re anything like our team, we can imagine that your work day doesnm’t start until you’ve had a boost of caffeine. HOWEVER, remember that your “emotional support” cup of coffee does not always need to be a Starbucks White Chocolate Mocha with an extra shot of espresso! You don’t have to order in for every meal!

Think of it this way, meals that are prepared at home are often fresher, cheaper, and more delicious! One small change and you can keep both your physical and financial state healthy. (Plus home-cooked meals lower your Carbon Footprint! Find out what your Carbon Footprint quiz is here)

 

5. Invest in your future!

Investing is a very intimidating word. Does this mean that you have to look for a financial advisor? Before you re-watch The Wolf of Wallstreet, remember that investing in your future doesn’t necessarily mean getting into the stock market or crypto.

Start small and risk-free by setting aside a budget for learning new skills and expanding your expertise through online training or webinars, increase your network by attending conventions, and put money into equipments and skills that can pay itself back in the long term! For example, if your a graphic design, invest in your future by taking an Adobe Certification after your work day or investing in better equipment that can double your work speed.

With that being said, remember to live within your means and spend money on yourself that your future self will thank you for. But if you find yourself having trouble saving and considering looking for a job with better compensation and benefits, we’re always hiring here at Sourcefit!

 

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