We are forty years old – only a few years away from retirement and still immature when it comes to handling money. Despite the age and the wisdom, we still find ourselves running out of money and still enduring to make both ends meet. Sometimes, we are caught in thoughts of turning back time to make some adjustments so we will not be what we are today.
There is no use sulking over spilled milk. What we can do now is to realize our mistakes and share our wisdom to our kids and instil life lessons so they do not commit the same mistakes we did few years ago. There is no better authority to teach them about money matters than we are. So, for young people (ages twenty years and above) out there, here are some things about money that they should realize before it is too late:
- Save: When we talk about amassing wealth so we retire comfortably, the first thing that comes to mind is saving. We have to admit that saving when we are 20 is very hard because there are many things that catch our attention. Cliché as it may sound, we have to get a small portion from our meagre allowance to save. It may be as little as $50 a week to $200. Regardless of the amount, the important thing is we separate something for our savings account. We have to keep it because sometimes we do not notice when it is gone.
- Identify where money is going: It is totally fine to spend money especially if it means having or doing the things that we love. We have to identify first where it is going and whether we can live without it. Once we identify it, we can wisely pick the things that we need to splurge. If it is hard to identify, we should reflect first or we can ask for the help of the people around us.
- Learn how to earn: Even if we are just students, we can still make money. We do not need to depend on our parents totally. So, aside from saving from our meagre allowance, we can look for some side-lines. For example, we can baby sit or tutor. In three to four years, we are way ahead of our league.
- Get rich: Getting rich is not easy and it could be difficult unless we are an heir. We have to accept that getting rich may take some time. The returns may be small at first but it is not always that way. The trick here is to be patient.