HOW TO SAVE MONEY FOR TEENAGERS? | HELPFUL GUIDE TO SAVE MONEY
Saving is boring and useless this is what 95% of the teenagers think.
But, this is wrong maybe your way of saving is wrong I will tell you some effective way that doesn't include counting each pennies you spend,it might be boring to count each pennies .
Saving,money is the fundamental of personal finance that you should incorporate as early as possible for financial leverage.
Saving give you the freedom to live on your own terms.
So, what's the process of saving that ain't boring, You might be thinking this right?
First,you should have a purpose or goal why you are saving?
Maybe you want to save for a new laptop, vacation or for emergency fund whatever maybe your resason write it on a piece of paper and stick somewhere you can see daily.
7 steps to save money for future
1.Record your monthly expenses:
There are 2 major types of expenses Fixed and variable expenses.Fixed expense are those expense that do not change with time and are more or less costs same every month like for examplea) Groceries b) rent c) Electricity bills.
2.Make a budget.
Making a budget is very important if you wanna control your money budgeting gives you freedom and choice how much you want to spend
3.Distinguish between 'wants' and 'need’.
We tend to overspend on monthly bases on lots of unwanted things that we think at that time this is what I really need but we are making up those things for buying it there is a whole psychology that advery companies apply so that we buy lot of things but it's very important to know the difference between 'wants' and 'need'.
4.Look for places to cut:
Just be councious enough while spending money and you will be able to differentiate between wants and needs try to eliminate expenses that are not required and try to be frugal .
5.Set saving goals:
what is your goal to save money is one of the motivation that can help you to save more like it can be to buy new laptop or vacation . Remember that your goal should be S.M.A.R.T that is it should be Specific ,Mesureble , Achievable , Relevant and Time bound.
6.Pick of right tools
Budgeting tools can save your lot of time and it can help you budget your money , count your daily expenses there are very good apps like mint, everydollar, Goodbudget etc that helps you in your budgeting journey.
This is very important lesson that you should start as early as possible to manage your finances because this things aren’t taught in school or college but in real world you have to know all of these because we all are playing money game willingly or unwillingly its on us but just like in every game if you wanna win first you have to know the rules so start learning personal finance as early as possible because this is real life shit that you have to apply again and again .
Budgeting is just the way to manage your money and it's one of the important part of personal finance and if we want to be financially independent we have to know how to budget and how money works as early as possible we because these are not taught in school or college .