Youth Managing Money


We all know that money cannot buy happiness, but without it it’s hard to do anything.

Here are some ideas to consider about managing your money:

  1. Always look for value.  Avoid luxuries and try not to buy things at the full price.  Always negotiate if you can.
  2. Make sure you meet your needs and hold off on your wants.
  3. Ask for and expect to get a discount.
  4. Make sure you keep a record of your spending so you can analyse where your money is going.
  5. Break down your spending occasionally so you can see exactly what your money is being spent on.
  6. File all the records of your spending away.

5 Money Myths
There is an old African proverb that says, “A person should be aware of half truths because they may grab hold of the wrong half.”

There is nothing wrong with money, but there is something wrong with not having any.  Money is harmless on its own, but it becomes dangerous when it falls into the hands of a fool and not used wisely.

Let’s look at some of the myths about money.

  • Myth 1:
    To be successful you have to work smarter and not harder.  This is not correct because you need to work smarter and harder.

  • Myth 2:
    You can use your money the way you want and still be financially independent.  They say that 95% of people don’t achieve financial independence by the age of 65.  This will happen to you if you follow the above advice.  The best advice is to stay out of debt and pay your bills on time.  Try and live within our means and buy according to what you need and not what you want.

  • Myth 3:
    The more degrees you have, the more likely you are to be successful.  This is a funny myth because Gates, Ford, Edison, and many others had little education.  They all had one thing in common.  Even though they were failures with education, they were wealthy when it came to achievement and with some that achievement included making a lot of money. 

    Education will help you achieve independence and teach you how to do things well.  It will prepare you for a career, but it is not there to pick you up if you are not prepared to commit and work hard.

  • Myth 4:
    It takes a lot of other people’s money to make money.  The trouble with using other people’s money is that you have to pay it all back, plus the cost of using it. Borrowing money to make money is not the best. 

  • Myth 5:
    Putting your money in the bank will earn you financial independence.  The trouble is, the bank only pays you a very small interest rate and sometimes inflation rises higher than the interest rate.  There is no way you will build financial security from just doing that.  The only people who really get rich by just putting their money in the bank are the owners of the banks.

    Look at investing your money in growth investments.  If you have the necessary skills and the commitment, you may have to invest that money in starting your own business and earning.

 


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