Welcome to my new quarterly series- Let's talk about....
This first subject is something that I have become really interested in and I believe with the right education about it, you can make all your savings goals come true.
I wish money education was taught more regularly in school.
There I said it.
I did not need to learn how to square dance or play the recorder. Money lessons are so important and the fact that they are not taught in school (at least the public school I went to) makes me sad. I (and so many other people) would have benefited and maybe not have made so many mistakes with money.
My mom taught me a lot about money when I was very young. I did great with money until I went to college. Those years, I seemed to forget everything I knew about money. Looking back, I realized I just wanted to keep up with everyone else and I was trying to fill a void that was unfillable at the point in my life. I have learned from those mistakes and I am still currently learning about money. I think you can never stop learning about money and what you can do with it and what it can do for you.
I have come up with some money rules that I have personally used over the years. I may not always follow them to a 'T' but I will always come back to them some way, some how.
1. You don't have to buy something in every store you walk in.
I have no idea where this came from but in my teenage years, I had this notion that every store I walked in, I had to buy something. It was really weird. I wonder if I saw this on TV or heard someone talking about it.
2. Stop buying unnecessary crap
You can go into Target/Home Goods/Micheal's and walk out with the ONE item you went in for. Its hard, don't get me wrong but think about what you can put that money towards if you didn't spend it on something you didn't need.
3. Save money
This should be something you do but I heard a staggering statistics from Bankrate.com, that 65% of people don't save money. SIXTY FIVE percent!? That is crazy. I might not have always contributed a lot to my savings accounts but I always had some type of savings.
4. It's not about how much you make, its about how much you save
Having a big salary doesn't guarantee that you will save a lot of money. Most people who make a lot of money, spend a lot of money too. If you start saving just $5 a week when you're in your twenties, and you don't touch it, with interest and inflation, you will have a lot of money come retirement time.
5. Invest in the stock market early and leave it there
Just like saving money, invest in stocks too. Research stock companies that you have an interest in- like Apple or Home Depot- then invest in those companies. Little by little you will start to accumulate more and more stocks. Robinhood and Computershare lets you buy portions of stocks to make it even easier to start.
6. BUDGET- make one and stick to it
I am guilty of not always following my budget. I think you need to make realistic budget that fits your life. The Budget Mom has great tips to start a budget.
7. Any extra money you get (birthday, holidays, gifts, etc) you should save some of it; not spend it all
I call this money- bonus money. This money you weren't expecting and if you didn't have this money, you wouldn't miss it, in theory. Keep this extra money in a savings account and see how much you can accrue in a year. This goes for tax returns and stimulus checks too!
8. Set up sinking funds
What are sinking funds you ask? The best thing ever. This is a separate account that you allocate your savings to each month and then you use the funds for a certain savings goal. For example, I pay my car insurance twice a year. I set up a sinking fund for that so I can save for it little by little. Once the bill comes in, I will have enough money to cover it. Then after I pay the bill, I start all over again for the next car insurance bill to come. Budget mom does a great job of explaining it more, click here.
9. Do your own research about money
The best way to learn anything is to google. Then you will have an infinite amount of resources on-line. You can ask friends and family about money advice but ultimately it comes down to you to make decisions about your money. Dave Ramsey, The Budget Mom, Nerd Wallet, Investopedia, Nerds Guide to Fi, and The Budgeting Wife are just some people I follow and trust about money.
10. Think about your future- where is your life going
What you know about money will help you or hinder you with your future. If you know in 5 years you want to buy a home or change jobs or relocate, you will need money for that. If you know of some ideas that you possibly want to do in the future- then you will be able to start saving towards those goals.
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Now I am no money expert and all that I have shared is things I have learned through trial and error over the years. I also have to give credit to my Mom for teaching me at such a young age about money and how to save.
How is your relationship with money?
[[when you create a plan for money, you give money a purpose]]
PS. I am not sponsored by any of the people/link I have in this post. THOUGH if anyone that I did link would like to sponsor me, I would LOVE that! :)
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