Tiffany Raiford
Finances are something we think about a lot. Some of us wonder if we’re saving enough, if the new bag is worth it and whether or not to book that weekend getaway. Others wonder if they can afford to buy new shoes for the kids or pay for that field trip that just came home with the little ones. It’s sad to know that not everyone is in a good place financially and that some people live with constant fear and worry. However, there are always options for those who want to make decisions that will change their lives. There are so many ways we can save, even if we think we can’t, and so many decisions we can make that will impact our financial future in ways we cannot even imagine. And the best part is that many of these financial decisions are small and insignificant to the point that you might not really even notice what good decisions you are making. If you’re looking to make a change, no matter how small, in your life, let us help you make that decision even easier.
Save
It’s not a big decision. It’s always mind blowing to me when people say they’ve made the decision to save. Saving should not be a decision; it should be a way of life. It should be considered a monthly expense just like your mortgage. With your mortgage you are investing in your home. With savings, you are investing in yourself. You don’t have to save a lot; just save what you can. Even the most insignificant savings can be more significant than you think. For example, if you put away $1 a day, that’s $365 per year. It’s not a lot, but it’s more than you had yesterday. If you decide to put away $1 on Mondays, $2 on Tuesdays, $3 on Wednesdays and so on until you get to $7 on Sundays and do this every week, you won’t even notice you’re saving. And that’s a big savings. That’s $28 per week, 52 weeks a year for a grand total of $1456 in savings. It’s a small decision that makes a big impact.
Pay Off a Debt
The moment you make the decision to pay off a debt, even just a very small one, you change something in your life. You make a decision that is going to change you forever. I’ve heard it time and time again from so many people. The feeling you get when you pay off a debt motivates and inspires you to keep going. Suddenly you have this inner need to pay off everything you own and make the best financial decisions in the world. It’s a small change, but it’s one that’s really big.
Save Your Savings
I’ve said this before and I will say it again, save your savings. It might not seem like a big deal and it might seem like a big deal; I don’t know. It all depends on how you look at things like this in your life. What I’m saying is this; if you go to the store and use coupons or buy things on sale, look at your receipt. At the bottom it will tell you how much you saved. If you can, put that amount – the amount you saved on your purchase – in the savings account. That’s going to add up pretty quickly. If you can’t do that, make the decision to round up every purchase to the nearest dollar and put that into your savings account. It might be small sometimes and closer to a dollar other times. Either way, you will notice that your savings add up with every single purchase you make.
Don’t Spend More when you Make More
It’s a simple rule. You get a big raise and think, “Well, I’m going to buy a luxury car now that I can afford one,” and there’s no reason you shouldn’t have what you want in life if you’re working hard for it. But think long and hard about that. Do you want that luxury car payment or are you paying cash? What if you invested in you and put your newly found raise into your savings account and allowed it to spend some time accruing interest? You’d be a lot more financially stable in the future and a lot more likely to afford the kind of lifestyle you want without worry. A small decision such as sticking with what you already have instead of spending your newfound money is a great way to save and make a big financial impact on your life.
Invest
Your small investments right now make a big impact on your financial future. It might not seem like investing at the age of 20 is something you need to do, but it is. The sooner you start investing your money, the sooner you can retire and the sooner you can live your life without worrying about finances. Investing is good because it’s an investment in you. And you are worth it. The more you save and invest now, the more you have to enjoy and the less you have to worry about over time. Do yourself this small favor and allow yourself to see what it is you are missing out on by making life much simpler and much more enjoyable.
Learn to Say NO
Perhaps the simplest lesson we can teach you about finances, learning to say no is a beneficial skill in every single aspect of your life. Think about it; sometimes you’re invited to do something you don’t want to do but you do it anyway because you feel like you have to. Say no and you’ll be happier. Learn to say no to thinks that aren’t financially smart; a $1000 bag you really don’t need isn’t something you have to buy just because you want it and can afford it. Buying a new couch just because you can doesn’t make it a smart idea if yours is just fine. Learn to say no and you will end up a much better persona financially.
Photo by Joe Raedle/Getty Images
Comments
Loading…