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Financial Advice for Aspiring Savers

By Nicole and Evelyn Holman - Upper Arlington

In modern society, it might feel like everyone’s getting rich easily. But if you’re not a celeb (and you won’t be receiving a chunky inheritance anytime soon!) it’s going to be a lot harder to become rich and stay that way. It’s easier to watch your money slip away from you with all your expenses than it is to save it. But, don’t give up too quickly because monetary security is possible to achieve with a little planning and brainpower. Try these tips for monetary management that can help you increase your wealth, in no time!

Making Money

Clearly, in order to be successful and to continue to be, one must initially make money. First, you’ll need to do something you enjoy, because otherwise you won’t be dedicated to your job or take it seriously. Contribute as much as you can in the office by becoming knowledgeable and efficient, and make sure people know about your hard work. Lastly, make sure your company has a focused destination and a plan for how to meet the set expectations.

Spending money

Just as you plan in the office, you’ll need to plan outside of the office, too. The easiest way to start is by planning how to spend your money. When trying to save, it seems like the last thing you’ll want to do is spend. However, setting aside money to improve your business can become a necessity if you want to make your money earn more money. But you’ll need to spend for yourself, too. Focus on buying only necessities (buy produce, not Starbucks) and ask yourself these three questions:

Will this object make my life easier?

Will this object provide me with lasting pleasure?

Is this item fulfilling a void in my life?

You should say no to two of these three answers 95% of the time. If you don't,  it’s time to rethink your priorities. Avoid shopping for mere entertainment, and when you do shop, try to buy multipurpose products and look for the best deals. If you can’t afford something you need (like a house), then be wiser when purchasing to ensure your ability to pay off the loans in the given time window. Additionally, it’s a great idea to form a budget, especially one in which 50-60% of the money goes to fixed costs (regular bills, like telephone or gas), 10% to investments, 5-10% to savings, and 20-35% to guilt-free spending. It’s important to spend less than you earn, so you’ll have money in savings!

Saving money

Rich people don’t get richer without setting aside some money from each paycheck. To start, you’ll need a secure bank account, as stashing your cash under your mattress is an easy way to let money get stolen or lost. Make sure you have money set aside in case of an emergency, as situations like that can happen to anyone. Next, comes money for purchases you know you’ll need in the next 10 years. Finally, start setting aside money for retirement.

 

Time for you to start planning! Remember, it might be hard to manage your money now but it’ll get easier once you acquire more skills (and more money). The earlier you start setting aside your extra money, the more that small amount of change will build up over time so you’ll be happier later.