Money-Management
The Art of Spending:
What you should know about how to spend money wisely
by Vincent St. James
I've made it a point to practice good spending skills, ever since I was in college and got my first real job and first credit card. Here I intend to continue offering my guidance with this issue.
Most people grow up without learning or needing money management skills- usually because they never have any money. Therefore, once college-time comes around, students are stuck not knowing how to act...what's worse is that they don't even know that they don't know (confusing I know).
An important lesson to learn: that you can't, and won't, have everything. It is human nature to want more than we already have, and then when we have more, we want even more... and then even more...and, well you get the idea. So rule number one is: forget about what you want. Forget it. It will do you no good. Focus first on what you need...always. You say you're hungry and buy a CD or DVD. You need a new coat for the winter but you're buying your third box of perfume or fourth pair of shoes on ebay. Stop it right now. Its time to be a wise spender. Now I don't just mean food, water, and clothing when I say "needs." You might go crazy just working all day, so the occasional movie or album is allowed. But most people don't do the occasional album or movie... they buy ALL of them. Or instead of renting, you'll go to the overpriced movie theater. Instead of instant oatmeal you'll get a french bagel. Be smart. There are cheaper alternatives to almost anything, and usually the quality is the same if not better. Shopping smart takes just a little bit of effort.
Saving is important. One should always have reserves in case of emergencies. Most people, especially college students who think (erroneously) that they can pay off debt in a jiffy, fail to save adequately. In addition to thinking you'll be making enough dough soon, people this age tend to feel better about themselves when making purchases. We feel independent, more mature. Hogwash! A mature person knows when NOT to spend, and if you're smart in a few years you WILL be independent. But not if you're losing money before you're making money. There is a time and a place to make certain purchases... just because its on sale does NOT mean you need it, nor because it's cheap on ebay.
Try these money saving tips and you'll come out on top.
There are plenty of people who are not in such dire need of cash...but they too should be smart. If you have some extra dough lying around, put it to work for you. Save as much as you can for that ultimate goal you have (dream car, dream house, dream honeymoon, etc). Read my article about smart investing and try to earn a buck for every quarter you have now. I'm not preaching to not buy anything you really want, like a nice pair of shoes or a tasty dinner, just don't go on thinking that you have an endless supply of money. The key here is to enjoy today while not jeopardizing your tomorrow in the process. Remember, if you're a smart spender, you know when NOT to buy...it's likely you already have everything you need.
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