CEBU, Philippines — Young people today have better paying joys and yet they are deeper into debt. The reason is perhaps partly because the educational system doesn’t teach practical life skills. When it comes to money, students are taught the skills to earn but not the skills to spend wisely.
And many of them have witnessed how parents often yelled and screamed at each other at home, over money. Sadly, the young ones are not a bit better off than their parents about money. They weren’t taught in school how to handle money.
Moreover, young workers are learning to spend money they haven’t earned yet. The ease of getting a credit card these days has led many young people into financial mess. It’s much easier deciding to spend away mere numbers on a machine tape than actual money from the wallet.
But, according to Carol Morgan at www.huffingtonpost.com, just because the young didn’t learn good financial skills in school doesn’t mean that they can’t learn on their own, now. To a good degree, it takes only common-sense planning. Just the same, the website shares tips to help anyone to get better at managing money:
1. Make a budget – and stick to it.
Track where all your money goes: going out to eat, seeing a movie, buying beer, or purchasing clothes. Don’t be one of those people who just pray every day that they don’t overspend. Make your budget. Go back and figure out how much you spent in the last months. You’ll probably be surprised at how much of your money is ‘wasted’ on things you weren’t even aware of.
2. Be a conscious consumer.
When you go to the grocery store, have a list and look at prices. Use discount coupons, if any. Many products of the same quality come in different price ranges. Be a conscious shopper. Don’t “sleep walk” through life. Be aware of every single cent you spend! The little savings you make on items can make a big difference.
3. Record your purchases.
These days, most people just rely on looking at their bank balance online. If you only do that, then it allows you to not care what you are spending in the moment. But if you hold yourself accountable by recording everything, then you are less likely not overspend.
4. Have a plan and a vision.
In order to accomplish anything, you have to have a plan. If you plan to go somewhere, you’ll figure out how to get there for sure. Otherwise, you’ll simply head aimlessly into nowhere.
The same thing happens when you don’t have a financial plan. You often ask yourself, “Where did that money go?” But if you have a plan and a budget, you will know exactly where your money has gone.
5. Think like an investor.
But think about it: Did the wealthiest people in the world just save little money a month and leave it at that? Of course not! They learned how to turn that small money into bigger money. You get the point – from a hundred to two hundred to a thousand.
You can expect to have a solid financial future if you’re thinking about how to grow your money. So if you start to think like an investor, you’ll see your nest egg expands.
6. Work together with an ally on the same financial goals.
If you’re married or in a partnership where you share money, then you need to work together. One of the biggest conflicts in a relationship is about money! Frequently, one person is a saver, and the other is a spender. This doesn’t work! So it’s important that both you and your partner get on the same page about your financial goals. Sit down together and make your budget, and agree that you both shall actually stick to it.
7. Commit to save money.
Commitment is everything. You can’t do anything half-way. You can’t sometimes do something and “sometimes not.” You have to be consistent! You have to stay the course!
It’s kind of like losing weight. If you only occasionally eat less and exercise more, you might lose some weight. But chances are, you’ll probably just go back to your old habits. So that’s why you need to commit to saving money and building your future.