9 Money Habits & Rules To Follow
For students, student loans are an important topic because there is so much to take into consideration and think about.
Money and debt has a strong influence in the world and our culture, and we need to think before we spend our money.
Not only do we need to avoid student loan debt, we also need to educate ourselves and our children about money. There are consequences to the actions we take and we must avoid the bad ones as much as possible.
The earlier a person learns about the value of money and the benefits of saving and investing, the better off they will be. The sooner they save, the more time they will have to watch it grow. This can be the first step that young people take to become self-sufficient and not have to depend on debt or parents to get their life on track.
Talk with your children about how you handle the family budget, what money pitfalls to avoid such as credit card debt and help them establish strong habits about managing their finances.
I am taking the time to talk with my son and am planting seeds in his mind about money and investing for his future. Some things I have to repeat so it stays in his mind and becomes a habit for him, but is well worth my effort.
Following is a list of things that everyone should know if they want to live a stress free lifestyle. The sooner we learn these, the better off we will be.
1. The number one rule is to always spend less than what you earn. Always pay yourself first and put money aside. This will help an individual get into the habit of saving. Unexpected expenses will always come up, and most people don’t save because they have nothing left at the end of the month. If you pay yourself first, saving money will become a worthwhile habit and a good priority to live by. Over three-quarters of all workers in the U.S. live paycheck to paycheck, leaving little chance for savings. 30% of the population has less than $1,000 in savings. Save and invest your money every opportunity you get. Most Americans including our government spend more than what they earn.
2. Never lease a car. Buying a used car is the best choice a person can make. New cars are too expensive, and at the end of a lease you have nothing to show for it.
3. Get into the habit of saving money when you are young. It’s easy to do and will become easier as you get older.
4. Don’t waste money on things you don’t need. Save that money for something you will need later.
5. Banks promote credit cards to college students and are easy to get. The banks want you to use them, but what they don’t advertise is that they come with high interest rates that can cause financial pain down the road. All the bank cares about is that you use them as much as you can. If you get a credit card, always pay the entire amount off at the end of each month. This is another important habit to live by, and it will keep you out of financial trouble. If you don’t stay out of debt, you will never be free.
6. Make a habit of living on a budget. It helps you plan and think ahead, and, living on a budget will save money.
7. Have a meal plan. By planning your meals ahead of time you are not wasting money on expensive meals or spending money on chips and junk food. Planning your meals makes it easier when you go shopping and it will also save you time. Always go grocery shopping with a list, because the list will help you stay on budget and not be an impulse buyer.
8. Try not to eat out in restaurants too often and avoid spending money on expensive coffee or drinks. This habit can save you a lot of money.
9. Never spend money on anything to impress someone. This will only cause you financial regrets. Also, never worry about what other people will think of you, because what they think of you is none of your business and it’s not your problem. Don’t compare yourself to others, just be you and they will respect you for that.
Set goals and take control of your financial life because no one will do it for you. The American Dream is more difficult to attain today than ever before, but it is still attainable with hard work and effort. By graduating from college without a student loan you will have an advantage over your peers. Money can’t buy you happiness, but if there was a choice I would rather be unhappy rich than unhappy poor. Money is a tool, and it can make your life easier if you are in control of your money and emotions.
Go out there and do good in the world and remember what matters the most. Family, friends and your health.
Goulash