Hey, whiz kids!
While some of you may be fortunate enough to earn some pocket money in exchange for doing chores around the house, others may belong to a family that doesn’t believe in an allowance (and that’s okay too!). The big question is, once you have some money, what exactly are you going to do with it? Here are 3 easy tips to follow that will help you budget like a boss!
Saving vs spending
What would you say the best thing about money is? Having it, for sure! Most people love that money gets them the things they want most in the world. Others get a kick out of saving up and seeing their money pile grow and grow.
But what if you could have the best of both worlds? Wouldn’t it be ideal if you were able to afford some of the items you’ve been eyeing without blowing all your hard-earned savings in one go?
The best things are worth the wait
There’s a saying that goes, ‘Nothing worth having ever comes easy’. This is a good lesson to learn early on in life. It’s okay to want things, even material things. We all do! But you won’t always be able to afford everything you want immediately. Most of the time, you’ll have to save for the things you most want. The good news is this is totally doable! You just need to be disciplined enough not to spend everything you earn in one go.
Divide your money
Start by separating your income into Spending Money and Saving Money. You may want to spend some of this money on snacks at the tuck shop, going out with your friends, or buying your sibling a birthday gift. These are your monthly expenses. Make a list of what these are and set aside some Spending Money for each expense.
Hopefully, you’ll have some money left over after you’ve set aside your Spending Money. You can put away any extra money you might have for something that you want and are saving towards. What do you want that would put a smile on your face? Having some holiday spending money? Donning the latest pair of Nike takkies? Just having a bucket-load of cash to call your own? Over time, if you consistently put away a portion of money you don’t really need, you’ll have saved enough to buy what is on your wishlist.
Now that you know the 3 easy tips to help you budget like a boss, we challenge you to draw up your own budget so you can start bulking up that bank account!
How to complete this activity is shown in Vol 9.2 of the Supernova magazine.