Cyprus’ youth talk money: 3+1 habits that help you save
By: Christina Nikolaou
Maybe you’re already saving money! You just haven’t realised it yet…
Think of money as a tool. If we use it properly, we can build our personal independence and achieve a satisfactory level of financial prosperity.
If we don’t use it properly, we risk burdening ourselves with additional worries that can affect our quality of life.
Here’s an example. Money is like a car. It’s a tool that helps us carry out the activities we need and want. If we handle it correctly, it serves us well. If not, we put ourselves at risk.
Try these small, everyday habits and see what happens…
Habit number 1:
Start an emergency fund, even with small amounts. This fund should cover at least three months of expenses in case you lose your job or face unexpected situations such as health issues or car expenses. But remember, it should not be used for long term goals such as holidays or buying a new car!
Habit number 2:
Track your regular expenses such as food and fuel to better understand your spending habits. And keep a close eye on your fixed monthly expenses (electricity, telephone, water bills). Keep in mind that awareness is the first step towards control.
Habit number 3:
Diversify your savings. Don’t put all your eggs in one basket. Separate your savings into simple categories and use more than one savings account for different goals. Here’s a quick example: The average Cypriot has his few eggs in a few baskets. Savings are usually in bank deposits and real estate. All within Cyprus. Cyprus is a small economic neighborhood of Europe.
Bonus Habit:
Build a safety net. As not everything in life is predictable and we can’t control everything, investing in basic insurance can protect us from unexpected expenses and financial shocks.
To maintain our quality of life and well-being when the paycheck stops coming, we need savings.
‘Cyprus’ Youth Talk Money’ is a Cyprus Mail series developed in collaboration with the University of Cyprus as part of the Financial Literacy Initiative, supported by XM. New student articles are published every Tuesday.
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Christina Nikolaou is a second year student in the Department of Accounting and Finance at the University of Cyprus.