Parents, college students, and teens all have one thing in common- the struggle of controlling money. Teens want to save money for a new pair of jeans; College students attempt to save money for rising tuitions;and parents try to save money so their child has a successful future.
The process of saving money is a life cycle – you start young and don’t stop until the end. In order to continue to survive this cycle, here is a list of the most essential tips to be successful financially.
Self-control
To be able to control money, you have to control yourself. That can mean two things: Don’t walk into a store and buy a pair of shoes just because the girl you don’t like has them, and you THINK you need them , too. No! Control yourself. We have all heard the slogan, “It’s your money, use it when you need it.” But don’t go buying items that are unnecssary, under a credit card (a credit card is not YOUR money). The point of a credit card is for the bank to collect interest. How else do you think the bank makes its money?
It’s your Money
Yes, you do need to learn through experience, but in case of money, let that experience be yours and not others. BECAREFUL WHEN RELYING ON OTHERS FOR FINANCIAL ADVICE! Take charge, read a few books, you can even visit Budget Without Blowing Off Your Friends. Understanding money is the first step to being financially successful.
Money Buys Happiness
Does money really buy happiness? Let’s say you have a good-paying job, and get paid $25 an hour. If you want to buy a TV that is about $500, that means the TV is worth twenty working hours. You probably won’t even use the TV for that many hours in a month. Let me remind you that that is only for someone with a earning of $25 an hour. The average minimum wage job, which many teenagers start with, is $7.25 per hour. Next time you want that new television or an updated IPhone, think of the hours you have to put in before you buy.
Where Does Your Money Go
Don’t waste your money on the unnecessary. A Starbucks’ grande Mocha Frappuccino (which averages for $4.00), is fine for a treat every now and then. However, Starbucks every morning is a waste and can be replaced with putting that kind of money away into a savings fund. $35 a week is no joke, multiply that by four and you have $140, which is $1,680 per year. That is enough to have a completely paid vacation to Las Vegas or Florida. So yes- money can be used to enjoy life a little, but yet still be able to know your limit, to be able to be successful financially.
Think for the Future
We all think being old is depressing, but is it really? You receive money and do not have to work- it’s called retiring. If your job does not have a retirement plan- it’s okay. Do it yourself. If you start putting $200 a month aside (with 7% annually on that money) at the age of twenty-five, by the time you are sixty-five you will have $525,000 saved up. The faster you start to save up, the more you have. If you start at age thirty-five, you will only have half of what you would have if you started at twenty-five.
Pinch a penny, save a pound. Self-Control is the first step to financial success and you will receive a bigger award at the end of your journey. It is worth it, Trust me.
