Money Management Top Tips
Speak to your family about creating a bank account even if you are just putting your left over tips from the week in it. Having somewhere to store your money makes you much more aware of it, than having cash lying about your room.
Try And Save A Certain Amount Each Week
If you have a part time job or are in an apprenticeship try and challenge yourself to save a certain amount every week. Speak to your parents or carers about making a plan with them, for example – if you manage to save this amount for 5 weeks in a row they will add on 10%.
Think About Long Term Goals
What are you saving for. This can be anything from the new Xbox to books for Uni or shoes for your first job. Imagine how good it will feel when you buy this with your own money and focus on that.
Use the 50:30:20 Rule
Spend 50% on necessities such as food and transport, use 30% for fun and put 20% towards savings. This way it gives you an easy method to divide your wages and know how much you have to spend.
Never Underestimate A Bargain
There is nothing wrong with sale shopping and shopping on a budget, especially if you are saving. Coupons, student discount and sales will become your best friend one day, so you may as well start now.
Now you have your own money it can be super tempting to spend it all on whatever you please. This might be fun in the short term, but when all your friends are buying big things or purchasing their first car you might begin to regret it. Before you buy another hoodie, think do you really need it?
Allow Yourself A Treat Now And Then
You are working for this money and it is absolutely fine to treat yourself with it. As long as you aren’t splurging every single penny you earn, a few treats every now and then are absolutely fine.
Money = Time
Before you pull out your wallet/purse think to yourself how many hours of work went into this purchase. For example, if you are buying a £75 coat and you get paid £7.50 an hour, that is ten hours you will need to work to earn that money back.
Learn To Review Your Bank Statement
Get into the habit of looking back over each monthly statement and seeing what you spent money on. Ask yourself if all of them are necessary purchases and look at ways you could improve your money management.
Talk To Family
Adults in your family will have been managing their money for a long time. If you are interested in investing or stocks ask around and ask online. The more you know, the more knowledge you can base your financial decisions on.
Some great books to read:
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