Today, I thought upof this idea, and compiled it into a Youtube video, but I think it is important to write about it on my blog as well.
Being an 18 year old man, I have not had the biggest encounters with money issues in my life. Usually I can make purchases with little to no repercussions within my life. But, as I learn more about the world, what makes it work, and what doesn’t.
So, here are my top 5 money saving and buying tips!
#1: Only buy things you actually want.
This sounds simple, but it is quite difficult to perfect. Throughout our lives, we are constantly bombarded with items the world thinks we need, but not actually what we want. Commercials are really good at persuading you into buying their product. I came close to purchasing the new iPad Air, thinking I needed it for who knows what. However, upon reflection, I am made to think that I needed it.
How? Our brains are wired to think new is good. This joyful period only lasts so long, until the motivation to buy something new depletes for that object, arising for the next product down the road.
The rule is slightly incorrect. What you want and need are two ends of a spectrum. When buying something new, you should aim for the middle of the two. That is when you should buy.
#2: Check that you can afford it.
In my life, when I want to buy something, I will rush into it and commit, before looking to see if I can afford it in the long term. With the Pandemic still highly present, I am still furloughed from my job; I am not earning the same as I used to. So when buying something, you need to look at your overall financial plan, see where you can cut down on expenditure in order to afford the new item, or don’t purchase it. No item will help you if it completely drains your account dry. Unless, it is a Pokémon card, then buy it.
#3: Save more than you spend.
It’s self explanatory. Either do the 5050 method of saving ( save half, spend half), but bills and living costs can make this impossible. Regardless, if you are aiming to spend your disposable income, assess how this money could be better spent, i.e saving for your children, or for an Emergency Fund. Money is not the be-all-end-all, but I would rather be a millionaire than penniless.
#4: Emergency Fund
Don’t spend all your money so you have nothing to fall back on if the time comes, and you need to pay for unexpected costs. Life is random and complex, you never know when you might need to spend your savings to save something, or someone precious to you.
Also, it’s good in case of job loss.
#5 Treat yourself.
I think this is one thing websites miss out on. It is okay to treat yourself once in a while. When the opportunity arises, and you can afford to spend a little money on yourself, why not? Our lives are too short to constantly work with no play; humans need it to satisfy our inner child. Whether this is buying a games console, or booking a holiday, you are allowed to do it.
What have I learned? When making big purchases, make sure you want it! Money is not unlimited, you have to be wise with your money, to help make your life better and happier.
But, do remember to look after yourself; treat yourself!