Stale Green Light

When you’re a kid a quarter was a miracle, and if you got a dollar for your birthday you thought you were rich.  Oh the days…

Now as an adult, a dollar is nothing but it’s hard to save even that.  Bills stack up, and with food, clothing, and dating…there seems to be no money at the end of the day.

But putting money in the bank for savings is an important habit to start, and the earlier the better.  My suggestion is that you put money in a savings account before you even touch it for bills and everything else.  That way you won’t miss it if you never had it.

If possible, talk to the finance department at your work to see if they can deposit a fraction of your paycheck directly into a savings account so you won’t touch it.  This will allow you to put away money monthly, and you get compounding interest.

You should use credit cards prudently and only make purchases that you can afford to pay off.  Credit cards can actually help you if you use them wisely.  This means that when you make a purchase, pay of the balance.

This will allow you to increase your credit score, while still gaining rewards from the credit card company.  And the great part is that you were going to spend that money anyways, but not you get flier miles for doing it.

The most common mistake with credit card owners is overspending.  It seems harmless to buy things here and there, but if you don’t have the money in the bank to pay for those things you could be digging yourself a very deep hole.

Buying with a credit card is great for building credit and racking up reward points, but it also makes it easy to spend more money.  For some reason swiping a card doesn’t feel as bad as counting out cash and handing it to a cashier.

They both have the same outcome, but people who pay with cash tend to spend less because of the visual realization of exactly how much you are spending at the cash register.  Buying with a card is very smart for your future, as long as you are doing so wisely.

Live within your means and only spend what you can afford.  Sometimes that means cutting back on luxuries like eating out every night, and getting your hair done weekly.

Instead, make smart decisions that keep more money in your savings account and and keeps banks from constantly knocking on your door.  Create a budget that fits your needs and stick to it.

It may be difficult at first if you are cutting back, but it will be worth it in the long-run when you realize that you are financially secure and independent.  Moral of the story: spend less, save more.

One of the most common mistakes of young college goers is their lack of planning for the future.  Right now it’s all about homework, exams, and dating; but the future isn’t as far away as it seems.

College is just the right age to start saving for the future and making smart investments that will last you a long time.  Most college students have part-time jobs, but for some reason that paycheck goes in one hand and out the other.

Saving money that money now by putting it into investment funds, CDs, or buying stocks and bonds is the best thing to do.  Sure shopping and having fun with friends is great and undoubtedly important, but not as important as your financial future.

People who start saving in their early twenties before they start having kids are more likely to be financially secure after the babies do come.  Everyone imagines their future life and having money, but the truth is that money will only be there if you put it there.

Students can easily get credit cards and start building their credit now.  Be smart with the card and only make purchases you can afford, and then pay off the balance.

Live on a budget and stick to it.  Starting these habits now will only help you when all of the bills start rolling in when your parents aren’t helping anymore.

Building good credit can help you get a good job after college, buy a house and get loans to start your own business.  All of this for being responsible at a young age and using your credit card wisely.

Make smart investment decisions, build your credit, do your research and make sure that your money lasts.  These are the steps to take to secure your financial future, starting now when you’re young.