With uncertainty behind every coming financial quarter, it is wise to begin planning for your future early into your life. There are many ways to responsibly save, such as using cash deposits, term accounts, investment products, or a combination of all of these.
In general, it is better to start the process as early as possible, and although it may be difficult towards the beginning of your fully independent adult life, it is certainly possible to begin fresh out of university.
Using a mixture of the tools stated above and some unstated, you will be able to figure out your perfect balance of saving and spending. This type of planning is in no way glamorous, but it will lead you down a financially stable path.
In order to be prepared for the future, it is your best interest to attempt to save around 20-30% of your overall salary each year in order to uphold a similar to same standard of living throughout your retired life.
Putting this type of cash away can be extremely difficult. One of the best ways to set positive saving habits is to begin saving parts of your salary right after you receive it. A way you can do this easily at home is to calculate your yearly salary post tax, multiply that by the amount of salary you would like to save, and then divide that by the amount of times you are paid throughout the year.
Transferring this amount directly after you receive your paycheck or setting up an automatic withdrawal and deposit system into your savings account will give you less opportunity to see the money you are planning to save as part of your spending budget.
Taking steps such as this makes the savings process much easier. Furthermore, this habitual saving will eventually become second nature, leading you to continue this type of saving into future careers and (hopefully) increasing levels of income.
Overall, having the ability and drive to start planning early is in no way glamorous, but it will be a very smart step for your future.
Cash deposits: the depositing cash into a checking or saving accounts via ATM or bank teller
Term accounts: fixed-term investment on a lump sum of money that can only be withdrawn once the term has ended
Investment products: a type of product that one purchases with the underlying expectation of having a favorable return (can be higher risk though)