I am pretty certain that if you had access to all the money in the world, then you would buy everything your heart desired! Name it, and you would have it!!
But in the real world, this is hardly the case for the majority, hence it becomes important to be prudent with the money available to one. The word prudent here does not mean parsimony or stinginess, rather it is associated with wisdom and thrift. Here are some tips to consider:
1. Spend Wisely
There is a huge difference between needs and wants. As a teenager, you need at least 3 healthy meals a day, decent and comfortable clothing, and suitable accommodation. Now your wants – the latest pair of jeans, that absolutely divine green top you saw on display at the shopping mall, the latest pair of really cool Air Jordans, or taking your best buddies to the arcade or movies for a fun time.
Well, these aren’t bad, a little fun never hurts. But you should also ask yourself, can I really afford it? And if I can, what fraction of my savings will I sacrifice for these things. Isn’t the reason why we put money away so we can have something for the rainy day? Now the rainy day comes and finds you unprepared, dear friend, wouldn’t you get royally wet?
Also, spending uncontrollably can be compared to driving blind, and I am sure you wouldn’t consider being a passenger in such a ride. Why not apply the same principle to your spending habits, and save yourself from financial accidents?
2. Control Your Initial Reaction
Those really beautiful pair of shoes will be just another pair of shoes which you own months down the line, showing you that it wasn’t really as important as you initially thought. The novelty will eventually wear off, and you would be on to some other thing that is divine, a must-have, or simply ‘It’. So, when next that over-powering feeling comes over you to buy, try your best to resist it. Remove yourself from its immediate attraction, and ask yourself – perhaps when you get home – Is it something I really need?
3. Practice, Practice, Practice
Practicing how to spend money now, will help you make wise choices as you grow into a responsible, thrifty adult. How so? Because at the present moment, you live with your parents, and have limited to no expenses that you have to pay for directly. Hence, your spending habits will equip you with the precious skill of knowing how to make a budget, arranging your needs in order of importance, cutting out unreasonable wants, and sticking with a plan.
Do you see how this is an investment in your future?
4. Always Compare Prices
Just because you have the money doesn’t mean you have to spend it! You shouldn’t always buy the first thing you see, or at the first shop you visit. Why not shop around comparing prices? You would be surprised what great bargains you will get. Furthermore, the internet has made this easy; there are now apps and price comparison websites that provide this service at no extra charge! Pricecheck is one of several.
Sometimes, waiting just a few weeks or months after the release of a product before buying may save you costs, in that, you get the same thing but at a lesser price!
5. Never Be Afraid To Bargain
This follows from the previous tip. Some shops allow you bargain on items, especially when they are being offered on Sales. And on other days, you could find out if there are promo offers, or other such offers that allow you pay less for the same product, or get more at the same price.
Do you have any money-saving tips to share with the community? Do provide us with them, after all you wouldn’t want to keep these gems to yourself.