Money is used as a means to achieve something else, it is a gateway to unlimited possibilities.
A lot of people shun money for what it makes of people. They believe that money creates selfish, egotistical people who are consumed by the thought of attainment. While it is true that money does have an effect on our behavior, it is mainly attributed by the fact that we no longer are barred from making decisions. We have unlocked unlimited capabilities to be able to do whatever it is that we want. So in fact, the attainment of money brings out in us who we truly are.
In order to be able to have better chances of gaining these types of opportunities in our lives, it is ESSENTIAL that we learn how to properly manage our money during our youth. Because of this, I have created three easily adoptable tips that you can begin implementing in your own lives TODAY!
1. Create Designations for Your Earned Money
Having purpose for your money allows you to be smarter with your money.
Give your money PURPOSE. By creating designated locations for your money to go once it is attained, you are effectively feeding every area of your life the exact amount of financial sustenance it needs to thrive. You will be able to better budget how much each part of your life needs in order to make your money last LONGER.
Some areas of your life that you can consider splitting your money up into are…
- This is the core reason for why you should be giving your money purpose. By designating a place for it to go to be saved for a future use, you are one step closer to letting your money last longer.
- Play Money
- Of course we all want to be able to use the money that we are earning! The play money designation is CRUCIAL for keeping you sane while allocating your money.
- One of the most vital things to do when you’re young is invest your money. Through compound interest you are able to exponentially increase your earnings, if you start now.
- Donating seems like the last thing we want to do sometimes when we have worked so hard to get our earned income. However, donating allows us to be separate from the dependance of money. Plus, at some core level we all have some level of contribution that lies within us.
If you’d like to dive deeper into this concept to really understand how you can pick designated percentages for different areas of your life, I have a post that goes deeper into talking about this subject. Click here if you’d like to learn more!
2. Wait Till You Can Buy 10 of Something Before Purchasing it
Recently, this friend of mine has been able to gain the means necessary to unlock more freedom in her life. Naturally, once you begin to accumulate wealth, you also accumulate responsibility. What was interesting was that during my time with her, I asked her how she was doing, managing this new found blessing. She responded with something that truly defines being smart with your money.
Wait to buy 10 of something before making the purchase.
If you cant buy 10 teslas, don’t buy one tesla. If you cant buy 10 books, don’t buy one book. If you can’t buy 10 dogs don’t buy one dog. You get the idea.
Why this is important is because it prevent impulsive buying. Sometimes we make purchases that we know very well we should not be making. Buying a new car for example is bound to be a huge liability in the future. We spend all our money or take on large amounts of debt to look the most stylish in our brand new BMW. Then later in the future, that sick ride we decided to buy breaks down, totaling in even more cash out of our pockets.
Moral of the story here is there will always be expenses in the future. It is best to be able to purchase something with a buffer instead of nothing at all because you never know what life has in store for you. Your car might break down or maybe something in your house needs to be fixed. Better to know that you aren’t spending all of your money in one purchase, and you’re allowing yourself to become one step closer to making your money LAST.
3. Determine Your Necessities
What are the things in your life that need your immediate attention?
It is important as financial learners that we take into account the things in our lives that are needs and the others that are strictly wants. By defining exactly what your money is dedicated towards for example, a car or a house, we eliminate impulsive buying.
In a business for example, the business owner must find a way to allocate his or her money towards the necessities of the company. Of course there are other things that he or she would like to purchase but they are not as important as other factors at that point in time.
It is the same in our own lives. We must find the purchases that outrank the others as far as what we desire and from there we can become MORE money conscious. By determining your necessities, you might think twice about purchasing that coffee if you’re saving up to make your next big purchase.
In summary, by eliminating the chances of buying random things around us we enable ourselves to spend that money on something else. Impulsive purchases become less attainable when you’ve effectively…
- allocated your money to different parts of your life
- established a substantial buffer
- determined your necessities
Let me know if this has been any help to you guys! I seriously appreciate any feedback that you leave as it helps me create better content for you!
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Andrew Martinez, owner and writer of Minerva Money
YouTube: Andrew Martinez