Money is very important. In most schools, they don’t teach financial literacy, but this is very important. There are a lot of people, young and old, who are not educated when it comes to money. They just know they get a check and they can buy the latest gadget with it. If you take care of your finances, your finances will take care of you. Let’s start with the bare basics.
Anyone can learn how to take care of their finances. As far as the basics are concerned, you should at least have a checking and savings account. The checking account is for your direct deposits and other income. It can be used for everyday things, like gas, groceries, and clothes. A savings account can be for those ‘rainy days.’ There will be times when your water heater breaks down or you may lose your job by no means of your own. It’s better to have it and not need it, than to need it and not have it. If you have it, you can float a little while until you can solve your problem. If you don’t have it, you have the dreaded task of asking family and friends for a loan.
Although you may not want to spend what you have saved (a sense of pride comes along with saving), you do have it and more importantly, you can help yourself. Putting money in a savings account can keep you from taking a big financial hit in your checking account – it’s like having a plan B. Plus, it’s a great feeling to be able to help yourself, knowing you don’t have to ask or beg someone for money. Asking for money gets real old, real quick. Things happen, but that’s why you put aside a little bit whenever you get paid. Then, you can pay for what needs to be done and move on with your life.
The whole point is that when you come into a place in your life where you need money (and it will happen), you will have it. Save a portion of your check, even if you live from check to check at the time. There was a time when I was only saving $20 every two weeks. It didn’t seem like saving that little would do anything and it was growing very slowly, but after you forget about it and come back to it, it’s a nice surprise to see. When your check grows, save a little more.
Technically, I’ve heard that you should save 10% of your check, but that’s up to you. You really should try to save as much as you can. The banks now have it where you can automatically have a set amount of money deducted from your checking into your savings, every pay period. Take advantage of it!
This is just the basics, but there are many ways you can grow your money, beyond saving it. Everyone has to start somewhere, so just start with getting a checking (if you don’t have one) and a savings account and don’t touch the money unless it is completely necessary. From there, you can discover other ways to invest and grow your money.