Some people manage to buy their own homes and start their own business in their 30s. Others, of the same age, are still trying to figure out how to make decent money.
There are certain obvious facts that can lead to prosperity, while others can lead to financial disaster. We chose the most effective tips for you. They can be very useful when you are still young!
How To Save Money As A Teen
9. Children are Expensive
There is a very tricky stereotype that we should have children in our 20s, 25s or 30s. But seriously, raising children is very expensive.
That’s why it’s so much better to have them when you’re fully ready, and that includes your finances.
So don’t rush and prepare a “financial cushion” with your partner before your family gets bigger. Through this means, you will enjoy wonderful moments instead of thinking about money every minute.
8. It’s Not Embarrassing To Ask For A Promotion
If you’ve worked in the same position for more than 3 years, it’s time to move up the career ladder. Applying for a promotion is the right step to improve your financial situation.
That’s why you shouldn’t be shy about asking for a promotion and salary increase. At the same time, don’t be afraid of increased responsibilities and a greater workload.
If you’ve turned down a promotion multiple times, it’s time to start thinking about changing jobs or improving your career skills.
7. It Is More Profitable To Rent A House Than To Buy It
We like to think that investing in real estate is a great decision. But real estate is getting cheaper, while you have to pay a lot more for a mortgage. So is it really profitable?
Here is an illustrative example. Let’s say a house costs $ 100,000. Their rent is around $ 550 per month, which makes an annual rent of $ 6,600.
Let’s subtract that $ 6,600 from the total cost of the house. The rest we would put in a savings account with an interest of 7%.
Thus, our yearly income with it will be $ 6,752, which will be more than enough to pay for another year’s rent.
If you invest your money more wisely, in the financing, for example, you will earn $ 9,764 at the end of the year. Therefore, you will make a reasonable profit.
Plus, you don’t have to spend money on maintenance, taxes, and furniture. So before deciding whether to rent or buy, count all the expenses and choose the most profitable option.
6. Invest In Your Health And Education
It is very difficult to be successful when you are not healthy. That is why it is important to take care of yourself, take a vacation at least once a year, sleep well, and eat healthy foods. A good education, in turn, can open many doors and erase borders.
5. Don’t Invest In Something You Don’t Know Well
Even if you want to get rich as soon as possible, you must have a calm, sober and calm mind when it comes to financial matters. If you follow your emotions and invest in dubious projects, you can lose a lot (if not all) of your money.
It is always best to consult the experts in advance to have a sensible evaluation of the project and its chances of success.
4. Don’t Borrow To Pay Old Debts
There is a very popular concept of getting a new loan to pay off an old one or to pay a debt to a person by borrowing from someone else.
This is a vicious cycle. It is much better not to have debt. But if you have a loan, it is better to stop buying something and save the money to pay the loan without borrowing more.
3. It’s More Efficient To Buy Shoes And Clothes Of Good Quality
Good quality clothes will serve you much longer than cheap clothes. Therefore, it is more effective to spend money on durable things. And if you buy them during the sales, it is twice as effective.
Try to make a list of the necessary items and buy them during the sale. Then you can save money for the next vacation.
2. Start Saving Money For Old Age Now
Today you are 20 and will be 30 before you know it. Time is fast and unforgiving. One moment, you are young; in the next moment, you have to pick up your grandchildren from kindergarten.
By saving at least $ 20 to $ 50 a month, you’ll have a decent amount in your account when you’re older, giving you more confidence.
1. When It Comes To Financial Expenses, Have A Similar Mindset To Your Partner
The partners should be unanimous on everything, including financial matters. If you try to save money and your partner keeps ruining everything, you will never get rich.
Talk to your partner and develop a unanimous spending strategy. Set common financial goals and achieve them. To get the right motivation, try saving money for vacations, for example.
What would you add to this list? Share your thoughts in the comments below.