When children are young just like we were one day, you never really think about managing money. But really, it’s a no brainer. The reason for this is if you want if you have a concern about your future and want to assure you have money for when you are older, check the following statistics we have sourced if you want to have a savings of £10,000 by the time you are 30:
- 78p a day from the age of 13 = £10,000
- £4.47 a day from the age of 25 = £10,000
- £27 a day from the age of 29 = £10,000
Take note of the Tesco jingle, “Every Little Counts” Yes, it’s true, use common everyday knowledge and put them into action and start saving today!
Think about it, when you borrow money you are literally giving away your future income which you will most likely wish you have when the time comes. For example if you borrow some money with interest of 10% for the year at a total of £200, by the end of that year in total you would have given somebody else a total of £20 of your income! It may not sound like a lot but remember what it says in the section above, every little counts!
Should I use a credit card?
No ! The biggest and very common risk people do with credit cards is run incredibly large in debt in which they can’t pay off . If you are looking to borrow some money, use your mum and dad, not the bank! Also, for a better convenient use your debit card rather than carrying money around, that way the money you don’t spend is in a safe location.
What is income and what is capital?
As you get older you will hear more people talking about these and you want to feel grown up and be able to understand it yourself. Capital can be anything that generates for whoever owns it therefore it isn’t just one thing, it could be money, an investment, shares, or even a property. Of course you probably won’t own a property just yet, but its better to get a good understanding of it at an early age.
On the other hand to think about a capital could be by looking at a tree with fruit on. This may sound strange but it makes sense! Take it that you own the tree which is the capital, and it continues to grow fruit which is the income. The salary or wage is the income that comes from the capital of your labour. So money is not money, it is capital or income.
Is it all about money?
Not necessarily, to shop well doesn’t just mean to spend your money wisely saving it where you can, it also means to save time. For example if you earn £2.50 per hour on your Saturday job, working for 5 hours, you will earn £12.50. But if you were to go out and purchase a new video game that cost £12 when really you could have got it elsewhere for £7.50, you have wasted nearly almost 2 hours of your life! Think about this wisely and you will feel your money is really well earned.
Think about your future
If you want to be wealthy when you are older and have no money worries, start a pension as soon as you can. When it comes to pension planning, make this vital, and guarantee yourself a good retirement where you can treat yourself whilst living a good life.
Think before you spend !
Celebrity Jay Z who a sensational singer is well known for his amazing lifestyle, opened his heart out to Beyonce by purchasing her a 5 million dollar ring! He gave her a 20 carat ring for their engagement, with the 18 carat diamond that formed its centre.
Remember, every little count’s and although you may not have any moneys yet, one day you might, so look after your future and stop all the worries!
Author: Sean Alder