#PINNED: Here's how to turn your non-essential cravings into savings

#Pinned makes it easier for young Filipinos to  discover meaningful and enriching content and stories that will help them separate music from the noise, wheat from the chaff, and flowers from the weeds.

All our stories are written by young creatives who made it their life mission to know everything there is to know about how fellow young adults can make the most out of their limited down time every day, every week.

If you’re like us, barely responsible adults and just starting out, you’ve never really thought about saving up or investing your money. But in these trying times, where there is an ever present fear of a pandemic, thinking ahead and using your money wisely is now a necessity. So here’s a quick how to guide on turning your cravings into savings!

Step 1: Understand your needs

Photo by ???????? Claudio Schwarz | @purzlbaum on Unsplash

A place to live in? Check!

Grocery for food? Check!

Clothes you can still wear and are still fashionable? Check!

Those new shoes you saw on an ad but you still have about 4 pairs? Maybe a no.

Daily milk tea? Hmmmm…. Maybe make it weekly.

Eating out when you could just go home and eat? A big NO!

Prioritising what you need, like money for groceries and rent, is so much more important than a shopping spree or eating out. Make a list of your needs and order then from most important to least. Cut down on mindless cravings and save that money. It looks hard but once you start, you will realize it doesn’t take a lot of effort.

Step 2: Create an emergency fund

Photo by Damir Spanic on Unsplash

Start saving for the future and its uncertainties. You never know when an emergency would happen (like really, who knew 2020 would be like this?) so save for it! It’s always good to have extra money. Don’t just think about spending less, save with a purpose! Saving for the future means that there is a certain goal you want to attain. This difference in perspective will make you more motivated to save money.

Step 3: Does it spark joy?

Photo by Clay Banks on Unsplash

Just like what our lord and savior Marie Kondo asks “Does it spark joy?” Are the things you spend your money on actually give you happiness? Constantly being mindful of your spending and the importance of money will put you out of the habit of wasting valuable resources.

Having weekly samgyup dinner out with friends is fun and does spark joy, but there is also joy in saving up and seeing your savings grow. I’m not saying to drop your friends and avoid eating out with them, but lessening the amount of money you all spend will not only help you but also your friends. This leads to the next step.

Step 4: The more, the merrier

Photo by Micheile Henderson on Unsplash

Doing things by yourself is hard and lonely. This also increases the chances of giving up and not sticking to your plan. Making a group savings with people you love - significant other, friends, siblings - and coming together for a certain goal boosts up your motivation to do better. If people you love trust each other and you, you will work even harder to save.

Saving for the future with your friends and making plans together on where to use that money will be exciting. Talking about your dreams, where you want to travel together and where you will spend the money, makes the entire experience more possible.

This year a lot of things happened, and this pandemic really shook us, we’ve seen a decline in trade, business and finances. So as early as possible we should think ahead and act fast. If in the future we see more unfortunate circumstances and emergencies, it’s better to be prepared and have money saved. Adulting in real life, right?