It doesn’t matter how much you try to beat the system, there is one thing you can’t escape from, and it’s the fact that we need money to survive. Now, you might live rent-free with your parents, but, you may not want this life when you turn 18. And the reason will be because you’ll be itching for independence. You’ll need money to buy things, buy your first house, go for a holiday, etc. These lifestyle changes cannot exist without money.
The question is why doesn’t anyone teach us about money? We didn’t even learn about it in school at all. At the same time, most of our parents never taught us about money too. Neither did they teach us how to make money or invest. At this stage, you need to quickly learn to manage money on your own
New isn’t always better
As young people, it’s obvious that everyone chases after the latest and new things or devices. Especially when we are trying to succumb to peer pressure, but, you have checked if you need that thing now. Instead of always buying the latest flashy things, consider saving your money. Only buy things because you want them and they are practical not because you are trying to fit in.
Buy Second Hand
You should consider buying good second-hand items and save a few percentage of your money. If the latest device or something you want to buy is out of your budget, get a second hand.
Open a credit card
People fear credit cards because they feel owning one will sky-rocket them into debt. You might think they are bad but they are not, as owning one can save you a lot of money in the long run.
However, don’t get stuck into buying more than you can afford by using your credit card. The money on credit cards is real money and definitely, they will ask for it back. So take what you can afford so you do not have to pay high interest as a result of defaulting on due dates. The importance of owning and using a credit card is so you can build your credit score which will help you down the line when you want to buy, let’s say, a house.
At that point, you may end up with a lower interest rate. Again, there are credit cards that allow you to earn cash back and points that you can use for travel expenses or buy other things. This gives you the benefits of earning while spending.
Open a Roth IRA
One of the best things you can do for yourself is to open a Roth IRA as soon as possible. It’s a retirement account that allows you to pay taxes on the money you are putting in. When you want to take money out, you do not get to pay taxes anymore. This applies to the interest you’ve accumulated too. It’s better to start now and you can do so with $25-$50. And you’ll be benefiting from the power of compound interest. For your benefits, do not leave your funds sitting in your Roth IRA, use it and invest in stocks, index funds, and other investments of your choice.
Do you need college?
The ultimate truth is that not everyone needs to go to college. There might be a lot of pressure to go from high school to college, but it’s not the prerequisites to success in life. People only try to make you feel like it is. Don’t be afraid to take a year off before college if you want to. This will give you the break to figure out what you want to do with your life. Instead of following everyone else, question yourself about what you need and go for it.