Today's guest post is from one of my favorite bloggers - Serendipity from Serendipity's Guide to Saving!
It’s no secret that I didn’t come from the best of households when it came to money management. My mom loved the finer things in life and my dad was is a people pleaser. Those two things so did not mix and in result ended up in lots of financial mishaps. When I became 18 and had about $1,200 a month to do what I wanted, I did nothing but go shopping and have fun. Oh my god. WHAT WAS I THINKING?!?! Now that I’m older (and way more financially awesome), I can tell other young people what I wish I knew. I will tell you since I can’t go back in time and slap myself senseless.
1. Money Does Not Grow On Trees
You may be thinking, “Serendipity, I already know this” and to that I say, “Well, good for you!” The “you” totally being said in the Christian Bale voice in which he flips his lid while filming a movie. And if you don’t know what I’m talking about, please YouTube it. You will now be saying that new slogan and you can thank me later. You’re welcome. But really, if you think the money fairy is going to come out of the sky and help you out, it’s not true. And it’s not your parents job to give you money either. You may have extremely nice parents who will, but I say get a job! I had an after school one for three hours a day which worked nicely and I worked on the weekends because I was a hustler. Or, do what Rambo did and find a nice tip job full time during the summer, money hoard and use it to spend through out the school year as you wish. There are jobs to fit you, your taste, what your willing to do and your time frame. Sometimes you just need to look.
2. Once it’s gone, it’s gone.
This financial nugget was from none other then my father, way after I already had money problems. He said, once it’s gone it’s gone and if I remember correctly, he was talking about my tax refund. It was my first ever tax refund and I had gotten back BANK! Okay, well it wasn’t really bank now that I look back, but it was a good chunk of change. I was happily shopping everywhere and buying everyone everything, especially my family because I hadn’t seen them in awhile. My dad saw that I was probably following in his footsteps and wanted to try to stop me before I fell down the rabbit hole. Nice try dad, but a little too late. So, I’m here to tell you, that every dollar you spend on crap, is a dollar you’re not going to get back. So remember who is in charge of your money and make it work for you.
3. Live below your means
Rambo taught me this one when I moved in with him when I had just turned 21. Rambo had already been living on his own in his own apartment for over two years and two years before that with roommates before he decided he was best by himself. Rambo was making pretty good money for being fresh out of college in a field that wasn’t even related to his degree ( and still does). But even though Rambo made a substantial amount of money, he didn’t spend like he did. He was very into saving it and cutting costs when he could. He, as a matter of fact, is still like that today. We have lived in the same apartment for four years because they keep dropping our rent, he drove his first car until the transmission fell out and I’m sure he’ll do the same to his current car and he can easily live off ramen noodles and oatmeal. Rambo tells himself he can’t afford something like a new video game even though he just made commission or extra sales. He lives below his means to save save save. If you can teach yourself to do this early on, you’ll have no problem when your older and making good money.
4. Establish a budget and start sticking to it.Okay, I’ve already told you to hustle, don’t spend money on crap and to live below your means. But none of that will matter if you don’t have a budget. A budget is a financial plan for your expenses and savings against your income. An income can either be money from your job you work or money you get from any other source, such as a parent ( lucky!), side hustles, selling stuff on Ebay, donating blood, etc. The easiest way to make a list of how much money you bring in, make a list of all of your expenses ( variable and fixed) and see where your money is going. If you don’t have any idea, I highly suggest linking your bank account to a website like Mint.com which will categorize your spending. You will then be able to see where you need to cut back to save money and start living beneath your means.
You’re never too old or too young to start working on your finances. With that being said, even if your my age or older, these tips can still work for you if your new to the personal finance game.
Any other tips you wish someone would have told you?
Serendipity
