When you’re younger, saving cash can look like an impossible task. Most of us view our paycheck as a manner to get via month to month and now not as a way to prepare for future life and save for financial difficulties.
However, putting even just the smallest amount of cash aside each month can make a huge difference.
DNE made a 5 tip list for young Egyptian adults to help them get started on the course to future economic success.
1. Make a budget. Creating and sticking to a budget is the first step to financial success. Monitoring where and how you spend your money will help you to start saving. Setting a monthly budget doesn’t mean you have to stop having fun. By setting a budget, you’ll be able to see in which your money is going every month and allocate certain sums of cash to saving, payments and entertainment. To do so, you can use any of the several budget mobile apps available such as:
2. Don’t wait to save before you start investing. Saving and making an investment may appear like a challenge now, however allocating only a few pounds a week will have a large impact. Use your budget to look how much money you can put into your savings account every month.
Or you can even buy bank Certificates of Deposit for as low as EGP 1,000, you can do that in several banks, especially government-owned banks such as National Bank of Egypt, Banque Misr, and Banque du Caire.
3. Save one-third of your income. If you can’t fight the urge to spend, you can commit to a ‘Gamaaya’ (money pooling). Ask around for money pools in your trusted social circles, most probably you always find one in work. By saving EGP 1 out of every EGP 3 you earn, you are making it simpler on yourself to survive any future financial crisis, such as layoffs, vehicle repairs, home repairs, and other surprise expenses.
4. Start making investments, you can buy stocks on the Egyptian Exchange, or you can try forex trading. But before you commit, ask a professional or someone you trust who have enough knowledge. Also, if your salary allows it, you can invest in real estate, look for properties that you can buy in instalments.
5. Pay off your debt. While putting cash into savings is a good manner to prepare for your destiny, you must additionally be involved in paying off your debt. If you have any loans or credit card debts, make sure you pay them on time and be careful not to let your credit cards spiral out of control.