Saving money could make or break your financial situation, learn how to make sure it makes yours.
Starting any job whether it’s a W-2 or a side gig it’s exciting. Seeing a steady flow of money for the first time can produce a euphoric feeling. The first time I got a big paycheck I was so surprised at the quantity. I knew the importance of that money and so I saved it.
How Much Should You Save?
I don’t know what expenses you may have, but I assume you don’t pay for groceries or rent. This allows us as minors to set ourselves up in the future. I don’t have a set savings account as I vary my opinion on how much I should save and how much I should spend/invest.
Some people suggest saving 60% or 40% but I would say saving young and saving more than 50% can create a successful start building wealth. I have set a goal to save up at least 60% if not more of my paycheck because it works for me.
Decide what will work best for you and start there. Don’t feel like you need a fixed savings rate just stay consistent with your savings, no matter the quantity .
Benefits of Starting Early
No matter your age, you can create income. You can set yourself up for when you are legally able to buy property or some type of investment. Creating a savings of at least 10k as a safety net is personally my first goal in regards to saving. Having this net can allow me to pursue more risky possibilities without worrying if I have something to fall back on.
You also learn mistakes that could have been detrimental to your finance in the future but wasn’t because you started young. Overall saving is something that a surprisingly amount of people don’t do, but that doesn’t mean you shouldn’t.
What To Use To Start?
Opening a savings account can be a good way to get tempting money out of your checking account, and somewhere safe. You should research what would be best for you whether it’s an online bank or a normal one look and compare rates.
Never ever open an account that has an annual fee, if it has one go somewhere else. Opening an account is quite simple, but you need your parents information for them to create s custodial account.
Savings as a Whole
No matter how much, savings is one of the best things you can do as a teenager to set up your financial future. Start on a safety net, then if along the way you need a new car or something of the sort learn to save for that the same way for the safety net.
It’s an acquired skill, but an easy one. Start today to set yourself up for success.
Financially Independent Adolescents 