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How can I become better at saving money and not spending it the second its in my hands?
I am a Senior in high school and I want to figure this out before I get thrown out into the real world.
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James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
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James Constantine’s Answer
Dear Patrick,
Does the cost of a college or university influence your choice of attendance?
Deciding if the cost should sway your choice of a college or university is a multifaceted and personal matter with no universal solution. However, there are several aspects you should bear in mind when making this decision.
On the upside, choosing a pricier college or university might provide you with superior resources, faculty, and networking opportunities. Prestigious institutions, for instance, often boast comprehensive career services departments, generously funded research programs, and robust connections with industry leaders. Plus, certain fields and industries may highly regard degrees from specific schools.
Conversely, opting for a more affordable college or university can lessen the student loan debt you incur. This can lead to long-term financial advantages, such as the ability to buy a house or launch a business earlier. It's also worth remembering that many successful people have graduated from less costly institutions or even community colleges.
If you're completely smitten with a college but it's beyond your financial reach, consider the following options:
Seek financial aid: The majority of colleges and universities offer financial aid packages to assist students in covering tuition and fees. These packages might include grants, scholarships, work-study programs, and loans. Don't forget to complete the Free Application for Federal Student Aid (FAFSA) to be eligible for federal aid.
Search for scholarships: Numerous scholarships from private organizations, foundations, and companies can help defray tuition costs. Investigate and apply for scholarships that align with your interests, achievements, and background.
Think about a gap year: If financial constraints prevent you from attending your dream school, think about taking a gap year to save money or work, and then reapply later. This period can also provide valuable work experience and a chance to reassess your career objectives.
Enroll in a community college: Community colleges typically have lower tuition fees than four-year institutions. You can fulfill your general education requirements at a community college and then transfer to your dream school to finish your degree.
In the end, the decision to choose a college or university based on cost is a personal one that hinges on your unique situation and aspirations. It's crucial to carefully consider the potential advantages and disadvantages of each choice before making a decision.
Stay blessed!
James Constantine.
Does the cost of a college or university influence your choice of attendance?
Deciding if the cost should sway your choice of a college or university is a multifaceted and personal matter with no universal solution. However, there are several aspects you should bear in mind when making this decision.
On the upside, choosing a pricier college or university might provide you with superior resources, faculty, and networking opportunities. Prestigious institutions, for instance, often boast comprehensive career services departments, generously funded research programs, and robust connections with industry leaders. Plus, certain fields and industries may highly regard degrees from specific schools.
Conversely, opting for a more affordable college or university can lessen the student loan debt you incur. This can lead to long-term financial advantages, such as the ability to buy a house or launch a business earlier. It's also worth remembering that many successful people have graduated from less costly institutions or even community colleges.
If you're completely smitten with a college but it's beyond your financial reach, consider the following options:
Seek financial aid: The majority of colleges and universities offer financial aid packages to assist students in covering tuition and fees. These packages might include grants, scholarships, work-study programs, and loans. Don't forget to complete the Free Application for Federal Student Aid (FAFSA) to be eligible for federal aid.
Search for scholarships: Numerous scholarships from private organizations, foundations, and companies can help defray tuition costs. Investigate and apply for scholarships that align with your interests, achievements, and background.
Think about a gap year: If financial constraints prevent you from attending your dream school, think about taking a gap year to save money or work, and then reapply later. This period can also provide valuable work experience and a chance to reassess your career objectives.
Enroll in a community college: Community colleges typically have lower tuition fees than four-year institutions. You can fulfill your general education requirements at a community college and then transfer to your dream school to finish your degree.
In the end, the decision to choose a college or university based on cost is a personal one that hinges on your unique situation and aspirations. It's crucial to carefully consider the potential advantages and disadvantages of each choice before making a decision.
Stay blessed!
James Constantine.
BRILLIANT SITE FOR YOUNG PEOPLE!
James Constantine Frangos
Updated
Gus’s Answer
There are a few different ways to save money:
1. Set a budget: By setting aside what you need from living expenses, you can allocate the rest to savings
2. Once you have set your budget, you can also consider reducing your living expenses (not going out to eat as much, etc.)
3. Prioritize saving: Once you determine the amount you want to save, you should make the priority once your receive money. A good way to do this is automatically depositing it into a savings account
4. Try to avoid debt: If possible, avoiding costly interest payments can be helpful in accumulating savings
Hope this helps!
1. Set a budget: By setting aside what you need from living expenses, you can allocate the rest to savings
2. Once you have set your budget, you can also consider reducing your living expenses (not going out to eat as much, etc.)
3. Prioritize saving: Once you determine the amount you want to save, you should make the priority once your receive money. A good way to do this is automatically depositing it into a savings account
4. Try to avoid debt: If possible, avoiding costly interest payments can be helpful in accumulating savings
Hope this helps!
Updated
Jelana’s Answer
Take a look at where you spent your money the last 3 mos. Use paper and pencil to remember the exercise. Categorize those items and be honest with yourself. You'll see exactly where the money goes-and where it doesn't. Anything you spent on extra stuff (e.g., subscriptions, eating out, etc.), total that up and invest it. That's the monthly amount you will invest for 3 mos. Set it up so it is automatically invested. Do not take any money out. Review it quarterly and repeat. Keep doing it. If you have the money to spend on the extras, you can invest it instead.
Yes do a budget and cut expenses of course. But you'll find very quickly that your extra spending will decrease.
Yes do a budget and cut expenses of course. But you'll find very quickly that your extra spending will decrease.
Updated
Elynna’s Answer
Hey Patrick! There are a lot of good answers to your question in this thread already, so I will just add that you should set up a savings account to deposit a portion of the money that you've decided to not spend. If you're more financially-savvy you can throw it into stocks and earn way more. The money you put there should be set aside with the purpose of saving you in emergencies or a rainy day. The rule of thumb I like to operate by is to save at least enough money so that if you were to lose your job, you'd still be able to pay rent and eat properly for the next 6 months. It takes time to build up a fail-safe like that, but if you start working towards that right now and spend smartly, you'll be fine.
Hope this helps!
Hope this helps!
Hey! I recently went through financial peace university by Dave Ramsey. Check him out on youtube if you want a perspective on how to manage money!
Hope this helps.
Dylan
Updated
Sarah’s Answer
To build a more comprehensive answer based on your savings goals, I would recommend the following steps:
1. Identify your savings goals: Start by determining your short-term (within a year), medium-term (1-5 years), and long-term (5+ years) financial objectives. These could include saving for a vacation, emergency fund, paying off debt, buying a house, or planning for retirement.
2. Prioritize your goals: After listing down your goals, rank them in order of importance. This will help you decide which ones to focus on first and allocate resources accordingly.
3. Set specific, measurable targets: For each goal, set a specific target amount and a timeline to achieve it. This could be a fixed nominal amount, or a proportion of your income, which should be realistic and achievable.
4. Establish a savings plan: Based on your identified goals and targets, create a weekly or monthly savings plan. Break down your targets into smaller, manageable amounts that you can set aside regularly towards each goal.
5. Review and analyze your spending: Analyze your past spending habits to identify areas where you can potentially cut back or make adjustments in order to save more. This may involve making small lifestyle changes like substituting expensive habits (e.g., buying coffee from a cafe) with more cost-effective alternatives (e.g., brewing coffee at home).
6. Create a budget: Develop a detailed budget that factors in your regular expenses and the savings you plan to set aside each month. This will allow you to track your spending and ensure you are saving in line with your goals.
7. Automate your savings: To enforce discipline and consistency, set up an automatic transfer from your checking account to a designated savings or investment account right after receiving your paycheck. This will help you avoid overspending and ensure that you regularly contribute to your savings goals.
8. Regularly review your progress: Periodically evaluate your savings plan to ensure you are on track to achieve your financial goals. If necessary, adjust your savings targets or spending behaviors to better align with your objectives.
9. Stay committed and disciplined: Establishing healthy financial habits is crucial to achieving your savings goals. Remain disciplined with your spending and saving and continuously look for opportunities to optimize your financial strategies.
By following these steps, you will be better equipped to develop a comprehensive approach to achieving your savings goals and build a solid foundation for your financial future.
1. Identify your savings goals: Start by determining your short-term (within a year), medium-term (1-5 years), and long-term (5+ years) financial objectives. These could include saving for a vacation, emergency fund, paying off debt, buying a house, or planning for retirement.
2. Prioritize your goals: After listing down your goals, rank them in order of importance. This will help you decide which ones to focus on first and allocate resources accordingly.
3. Set specific, measurable targets: For each goal, set a specific target amount and a timeline to achieve it. This could be a fixed nominal amount, or a proportion of your income, which should be realistic and achievable.
4. Establish a savings plan: Based on your identified goals and targets, create a weekly or monthly savings plan. Break down your targets into smaller, manageable amounts that you can set aside regularly towards each goal.
5. Review and analyze your spending: Analyze your past spending habits to identify areas where you can potentially cut back or make adjustments in order to save more. This may involve making small lifestyle changes like substituting expensive habits (e.g., buying coffee from a cafe) with more cost-effective alternatives (e.g., brewing coffee at home).
6. Create a budget: Develop a detailed budget that factors in your regular expenses and the savings you plan to set aside each month. This will allow you to track your spending and ensure you are saving in line with your goals.
7. Automate your savings: To enforce discipline and consistency, set up an automatic transfer from your checking account to a designated savings or investment account right after receiving your paycheck. This will help you avoid overspending and ensure that you regularly contribute to your savings goals.
8. Regularly review your progress: Periodically evaluate your savings plan to ensure you are on track to achieve your financial goals. If necessary, adjust your savings targets or spending behaviors to better align with your objectives.
9. Stay committed and disciplined: Establishing healthy financial habits is crucial to achieving your savings goals. Remain disciplined with your spending and saving and continuously look for opportunities to optimize your financial strategies.
By following these steps, you will be better equipped to develop a comprehensive approach to achieving your savings goals and build a solid foundation for your financial future.
Updated
josh’s Answer
I highly recommend reading Ramit Sethi's book, "I Will Teach You to Be Rich," as it provides a comprehensive and practical guide to personal finance and wealth building. The book is divided into multiple categories, covering topics such as budgeting, saving, investing, and making informed financial decisions. It is designed to help individuals, especially young adults, develop good financial habits and set themselves up for a successful financial future.
One of the key focus areas of the book is addressing issues related to overspending. If you find yourself struggling with spending too much, it is important to first identify the root cause of this behavior. One possible reason could be that you do not prioritize saving, which leads you to spend all your income.
As suggested in Sethi's book, a practical way to curb overspending is to implement a conscious spending plan. You can do this by setting a specific percentage of your income for savings and investments, as well as allocating a separate percentage for discretionary spending. This way, you have a clearer guideline on how much money is designated for each purpose, making it less likely for you to spend all your earnings.
In addition to setting up a conscious spending plan, consider diversifying your savings and investments across various platforms and financial instruments, such as savings accounts, certificates of deposit (CDs), bonds, and various types of investments (stocks, mutual funds, etc.). This strategy not only ensures that you're consistently saving and growing your money, but also provides a level of security by spreading your financial resources across multiple channels.
In summary, Ramit Sethi's "I Will Teach You to Be Rich" is an excellent resource for instilling good financial habits and tackling issues like overspending. By setting up a conscious spending plan, identifying the underlying causes of your spending problems, and diversifying your savings and investments, you can take control of your finances and pave the way for a secure and prosperous future.
One of the key focus areas of the book is addressing issues related to overspending. If you find yourself struggling with spending too much, it is important to first identify the root cause of this behavior. One possible reason could be that you do not prioritize saving, which leads you to spend all your income.
As suggested in Sethi's book, a practical way to curb overspending is to implement a conscious spending plan. You can do this by setting a specific percentage of your income for savings and investments, as well as allocating a separate percentage for discretionary spending. This way, you have a clearer guideline on how much money is designated for each purpose, making it less likely for you to spend all your earnings.
In addition to setting up a conscious spending plan, consider diversifying your savings and investments across various platforms and financial instruments, such as savings accounts, certificates of deposit (CDs), bonds, and various types of investments (stocks, mutual funds, etc.). This strategy not only ensures that you're consistently saving and growing your money, but also provides a level of security by spreading your financial resources across multiple channels.
In summary, Ramit Sethi's "I Will Teach You to Be Rich" is an excellent resource for instilling good financial habits and tackling issues like overspending. By setting up a conscious spending plan, identifying the underlying causes of your spending problems, and diversifying your savings and investments, you can take control of your finances and pave the way for a secure and prosperous future.
Updated
Daniel’s Answer
Patrick,
The very first thing I would do is make yourself a monthly budget. There are many good apps/online tools you can find online. Many online tools can help you categorize certain expenses and they usually have graphics that can help you visualize your progress. You can also do it the old fashioned way on Excel.
After you set up a budget the next best thing you can do is sleep on it and really ask yourself if you need the item. I would encourage you to really think through what you will use the item for and for how long. Also, think about the big items in life you need to save for such as a house, possibly kids, retirement, etc. You are never to young to start saving for these big ticket purchases in life.
The last thing I would do is don't compare yourself to others. One of the most dangerous things is comparing yourself to people and thinking if they can have it so should I. Don't fall for that trap of "keeping up with the joneses" because comparing yourself to people and their things is not a good idea. It will only lead to misery and feeling like you are failure.
Hope some of the above provides insight.
The very first thing I would do is make yourself a monthly budget. There are many good apps/online tools you can find online. Many online tools can help you categorize certain expenses and they usually have graphics that can help you visualize your progress. You can also do it the old fashioned way on Excel.
After you set up a budget the next best thing you can do is sleep on it and really ask yourself if you need the item. I would encourage you to really think through what you will use the item for and for how long. Also, think about the big items in life you need to save for such as a house, possibly kids, retirement, etc. You are never to young to start saving for these big ticket purchases in life.
The last thing I would do is don't compare yourself to others. One of the most dangerous things is comparing yourself to people and thinking if they can have it so should I. Don't fall for that trap of "keeping up with the joneses" because comparing yourself to people and their things is not a good idea. It will only lead to misery and feeling like you are failure.
Hope some of the above provides insight.
Updated
Scott’s Answer
Hey Patrick, that's a great question! Saving money can be tough, but with some effort and discipline, it's definitely doable.
I recommend checking out Ramit Sethi's book "I Will Teach You to Be Rich". In the book, Sethi breaks down the steps to building wealth and achieving financial independence in an easy-to-understand and actionable way. He also provides practical tips for saving money, investing wisely, and automating your finances. It's a great resource for anyone looking to improve their personal finance skills.
Below are a few actionable steps that you can take to become better at saving money.
Good luck!
Start by creating a budget: List all of your income sources and all of your expenses, then make sure that you're not spending more than you're earning. This will help you identify areas where you can cut back and start saving more.
Set specific saving goals: Whether you're saving for a new car, a down payment on a house, or just an emergency fund, having a specific goal in mind can help motivate you to save.
Track your spending: Keeping track of where your money is going can help you identify areas where you might be overspending. Use a budgeting app or spreadsheet to make this process easier.
Avoid impulse purchases: If you're someone who tends to spend money the second you have it, try to avoid making impulsive purchases. Take some time to think about whether you really need something before you buy it.
Find ways to save on everyday expenses: Look for ways to save on things like groceries, utilities, and entertainment. This could mean shopping at a cheaper grocery store, cutting back on your cable package, or finding free or low-cost activities to do with friends.
I recommend checking out Ramit Sethi's book "I Will Teach You to Be Rich". In the book, Sethi breaks down the steps to building wealth and achieving financial independence in an easy-to-understand and actionable way. He also provides practical tips for saving money, investing wisely, and automating your finances. It's a great resource for anyone looking to improve their personal finance skills.
Below are a few actionable steps that you can take to become better at saving money.
Good luck!
Scott recommends the following next steps:
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