Why Understanding Spending Patterns Are Important For Young Professionals?
After students complete their graduation, the freedom to spend (lavishly) with their own money is enticing. This can be attributed to exact causes like partying, lending money to pals, or gaming.
Most young professionals are single and have a busy social life with no economic commitments (except those who must repay college loans). The widespread attitude here is to 'spend' rather than 'save.'
Now, many have experienced this scenario above. The question remains, how can a young professional deal with this situation and start saving towards a future where they don't need to rely on being on the corporate hamster wheel.
Understand your spending patterns
Firstly, determine how much you will be paid for the month. This is easy for salaried workers as this amount tends not to fluctuate, but this is a bit more difficult for professionals who get a wage. Secondly, not down all the payments, you are required to make over the month. These should be non-negotiable commitments like student loans, rental payments, etc.
By now, you'd have made a mental note on your spending pattern and what is likely to be remaining by the end of the month. You will have an idea of what money is left over for discretionary spending at any given time of the month.
Finally, consider how you will spend your discretionary budget. Blowing this money each month on parties, eating out, and other frivolous spending may not be the best use case as it will depend on the corporate man, aka the salary.
Thank you for reading and hope you have a good rest of the day!