Whether you're saving for a PS5, a better car or a new phone, learning how to handle your money is nothing less than a superpower.
Once you master it, the skill will serve you for a lifetime. Here’s 6 tips to get you started.
Tip 1: Know where your money is going
Get a notebook out or simply use Microsoft Excel/Google Sheets to track your income (allowance, part-time job, gifts) and your expenses (movies, snacks, outings). Knowing where your money goes is the key.
Tip 2: Set savings goals
Motivate yourself by thinking what you will do with your saved money.
Dream big! A new car, holiday with friends or new wardrobe. Everything can all be possible – if you save well. Divide your goals into short-term (less than a year), medium-term (1-3 years), and long-term (3+ years) to stay motivated.
Tip 3: What matters most to you?
Now, you might think getting the new PS5 is the MOST important thing.
But is it really? Prioritise your spending on needs (essentials like a new laptop for school, petrol for your car) over wants (entertainment, luxury items). Remember, it's okay to indulge occasionally, but striking a balance is the key.
Tip 4: Wait a day before you buy
We’ve all been in situations where you stumble on your dream jacket. But do you actually need one? Take a breath, ask yourself – Is this a need or a want? Sleep on it and see if you still want it the next day. This will really help you make better decisions.
Tip 5: Look for deals
Make sure you get bang for your buck. Look for deals, compare prices, and consider second-hand options. Thrift stores, online marketplaces, and clearance sales can stretch your dollars further. Make that money work hard for you.
Tip 6: Avoid Peer Pressure
It's okay to say ‘no’ if you can't afford something. True friends will understand and respect your financial boundaries.
If you don’t reach your savings goals – you’ll be the only one to suffer. So, spend money on things that YOU want to do, not what your friends want you to!
Follow these tips, and you’ll be well on your way.
Remember, your money decisions today lay the foundation for a brighter future. Keep practicing these skills, stay mindful of your spending, and never underestimate the impact of smart money choices on your life's journey.
Your financial freedom awaits – go out there and blaze a trail!
This article is for information purposes only. The content is of a general nature and does not take into account your financial situation or goals and is not financial advice.