Money Lessons I Wish I Had Learnt Earlier
We all have things that we wish we had known sooner, or learnt earlier.
A big one for me are certain money lessons that as a society we are not typically taught. I feel that had I have known these sooner, I may be further along the journey that what I currently am.
I hope you enjoy and without further ado, let's get into it.
💰 1: Saving money for the future
Saving money means setting aside some of the money you receive instead of spending it all right away. You want to do this to invest later down the line. Here's how you can implement this:
Get a savings jar: Find a jar or a container to use as your savings jar. Whenever you receive money, put a part of it into your savings jar. You will be surprised at how much you can actually save!
Open a savings account: Talk to your local bank about opening a savings account to deposit your money. Doing this allows you to build up discipline by building a cash pot, to save as an emergency fund or to invest. You will receive interest on your savings, but it will be pennies in comparison to investing.
Saving money will help you buy things you really want in the future and be prepared for any unexpected expenses that might come your way.
💰 2: Budgeting and planning
Budgeting is like making a plan for your money. It helps you know how much money you have and how to spend it wisely. Follow these steps to start budgeting:
List your expenses: Write down everything you usually spend money on monthly. This will help you see where your money goes.
Decide how much to spend: Once you have your list, think about how much money you can afford to spend on each item. It's like dividing your money into different portions. Don't over spend!
Stick to your budget: When you go shopping or want to buy something, check your budget and make sure you have enough money for it. This way, you won't spend all your money on one thing and end up with none left for other important stuff.
💰 3: Understanding the difference between needs and wants
Needs and wants are two different things when it comes to spending money. This is how to tell them apart:
Needs: Needs are things you must have to live, like food, clothes, and a place to live. They are essential for your well-being and survival.
Wants: Wants are things you would like to have, but you can live without them. They are nice to have, but not necessary.
Prioritise your needs: It's important to focus on your needs first and spend your money on them before buying things you want. Before making a purchase, ask yourself if it's something you really need or just something you want. This will help you make smarter choices with your money.
Remember, these money lessons are valuable no matter how old you are.
By starting early, you can develop good money habits that will benefit you throughout your life.
Keep learning and growing, and you'll be well on your way to financial freedom!
