When it comes to youth and saving, you don’t need to have a lot of money, you just need to save frequently. Right now you have time on your side, so make this time count while you can.
The years can slip by very quickly and before you know it, you’re middle aged and you won’t be able to employ these same techniques then. It’s much easier and costs a lot less to start now, while you are still young.
There’s always going to be something to spend your money on. Society is geared that way. Don’t follow the crowd, who spend all their money thoughtlessly. Make better use of your hard-earned dollars.
It’s in the seller’s best interest to help you buy their product. It’s their job to sell you the biggest brand and latest innovation, making themselves wealthy in the process. It’s in your best interest, to keep some of your money for your future financial stability, to make yourself wealthy.
You buy things to impress people you don’t know and who don’t care. That doesn’t mean you can’t buy the big brand names. Just remember to keep a little of your own money for yourself, for your future and your financial security.
To retire a millionaire all you need is regular savings. If you start, while you’re young, it won’t cost very much at all.
Having said that…Here are the 5 easy steps, which will help get you started, to a future of sound financial health;
Step 1.
Save $20 a week in a daily compound interest account. This doesn’t sound like a lot of money, but it will grow over the years of a lifetime. With regularity, just $20 a week could see you retire a millionaire.
A daily compound interest account will earn you more interest than a monthly interest account. There won’t appear to be a lot of difference when you first start out, but as your account grows, it will make a big difference.
Right now, if you are still young, you only need to save $20 a week. If you leave saving until you’re 50, it will take ten times that amount to end up with the same result. The earlier you start, the less you need to save and the better off you’ll be. And with inflation, by the time you retire, $20 will seem like nothing at all.
Step 2.
Open a direct debit savings account for your $20. That way you won’t even notice it. You work with what you have in your account each week and if that $20 is already taken out, you’ll work with what’s left.
If you find yourself spending all your money, work an extra hour or two a week and save that. Go back to earning pocket money and mow your parent’s lawn, or babysit the neighbour’s kids and make sure you save those dollars, not just spend more because you’re earning more.
Step 3.
If you want to be rich, do what the rich do. Instead of spending all your money on clothing and handbags, walk into an antique store and purchase something that will last. Wealthy people all buy antiques. They know about value and growth and don’t let an opportunity go by, if they think they can make a dollar, or two.
Get to know your antiques and buy the odd thing throughout your life. You don’t have to spend a lot of money. Again it’s just the little things you do, that can make big differences over time. Coin and stamp collecting doesn’t cost a lot and if you start young, can be worth quite a bit by the time you retire.
Spend one afternoon on the internet, or at your local library and you’ll soon see what antiques, coins, or stamps to look out for. It won’t take a lot of your time to learn this.
Step 4.
Work yourself into a position where you get paid more money. Study hard, put in 10% more effort than the guy before you and you will be noticed and promoted. Work smarter, not harder! Unless you really love it, don’t stay at a job with a cranky boss and terrible pay.
You pay peanuts, you’re going to get monkeys. A boss who pays peanuts will end up with monkeys working for him. All the good employees, those who value their time and their money, will leave for better paying work. Do the same. Leave the monkeys to collect the peanuts.
Step 5.
Learn about investing. Buy just one book on the topic and read it. You’ll be surprised at how simple investing can be and how little it will cost you to get started. Noel Whittaker writes very good and easy to follow books, on investing for youth. Or you could subscribe to one of the money, or investment magazines and for just a few dollars a month, you can learn about wealth creation.
And that’s it. It’s that simple.
Do you realize 90% of people struggle financially? The majority of people have never tried to learn the basic fundamentals of saving and investing. Break out of this trend. You owe it to yourself and those you care about, to become wealthy.
Spend your time having fun! Have a fun night out, or watch TV and chat to your friends on Facebook. But try to include just a small amount of time each week, on wealth creation. All it takes is just 10 minutes, once a week, to make a dramatic difference to your financial future. Invest in those 10 minutes of time. Do something to set yourself up for a comfortable lifestyle, instead of living on ‘struggle street’ for the whole of your life.
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