As a young professional, there are so many things that I have realized I have been doing wrong in the past years that I could have avoided if I was taught of the correct ways to evade it.
How many of the college students today or even young professionals are fond of drinking branded coffees? I know the taste is very incomparable to 3-in-1 coffees but considering the price, is it really worth it? Pastries sold in the coffee shops are also one of the selling points. These are cooked generously with imported ingredients and priced at a higher tier.
What if you ditched those and saved the money for future investments?
1. A glass of gourmet coffee costs P135 on average
A young professional buys a coffee which costs P135 three to four times a week. This costs him P405-540. He stays in the coffee shop for about 3 hours every visit and made him buy a gourmet bread which roughly costs around P70 (P210 - 280 a week).
The cost he spent on buying coffee and bread is on top of his daily transportation expenses, monthly cellphone bills and all.
Why do yuppies spend that much on things they do not need?
1. Lack of Information
First of all, financial literacy should be studied in school. Students shall be taught on how to save and manage money for the present and the future. They need to be literate enough and wise enough on how they will spend their money.
Professors should also teach their students on what to buy and what not to buy. In this case, students will be readied when they enter the real world of adults wherein they will pay their own mortgages, amortizations and all.
A psychological theory where individuals will do something primarily because other individuals are doing it, regardless of their own beliefs, which they will ignore or override. This effect has the capability to produce wide implications, but is most often seen in the areas of politics as well as in consumer behavior.
If one buys a brand, one will follow even if they do not need it just because the brand is famous now or everyone has it.
What do we need to do?
1. Read Financial Literacy Blogs
Reading financial literacy blogs will open your minds to everything. This will make you realize you have been doing wrong with your money which you could have invested for your future and your families’.
2. Educate yourself and Invest
Learn about financial concepts and invest. This way, you can save up money and earn from it. This will give you worry-free future.