Building up your financial status.
First, you need to lay a solid foundation and strengthen it before building multiple floors on top of it. You must start from the beginning and gradually build each layer that is solid and stable. Apart from this, there is no other way, and there is no way to jump off the building during the construction process.
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If the foundation is weak, the building will only be able to rise to a certain extent and cannot be maintained.
If your foundation is completely damaged, the first strong wind will cause the building to collapse, so you must start over.
The financial situation is the same. Starting from a solid foundation, your financial skyscraper can grow to a height that can be built. Starting from the bottom, your financial skyscraper will be restricted. Make a bad start, the first major hitting ic will probably disappoint you.
In fact, laying the foundation for our financial life is so important that we will focus on this new series. Although we hope you can build a solid foundation as soon as possible, we realize that many of you have graduated from high school and have entered the adult stage. Don't worry if you are a little older, because even if you have already laid the foundation and have weaknesses, there are still things you can do to consolidate your future foundation.
If you are in this situation, the key will be to strengthen the weakness and build the right path from there.
At this point in life, most people rely entirely on their parents or guardians and their families to make money. You can get a bursary or do housework, but almost everything you own has already been bought for you. Although getting financial support from your parents is normal and necessary, it may be a good idea to find your first job when you enter high school.
We recommend it for several reasons. First, you can start learning valuable adult skills, such as learning new skills, working with colleagues, meeting expectations and deadlines, and adhering to schedules.
Part-time or summer jobs will also help you gain independence by learning self-management and time management. You need to be able to get up and prepare, arrive at the work place on time, and complete the required tasks effectively and comprehensively, but your parents or guardians will not guide you every step of the way.
Finding a job will also allow you to start making money on your own, and you can use this money to start building a solid financial foundation. This may be the first time you have complete control of your funds, so it’s important to understand how to take responsibility.
You can store your money in a checking account or a savings account, but we recommend that you have both currencies and deposit it into your savings every month when there is no emergency.
There are several reasons. First, your debit card will be linked to your checking account, but not to your savings, so any deposits you make will remain here unless you transfer it directly to a check or withdrawal.
Since you are using a separate account, you are unlikely to touch it. In addition, the extra steps required to transfer money from savings to your checking account are an additional barrier, and it will help you limit spending to your checking account. In other words, your willingness to spend has decreased because the money in your checking account has decreased and transfers require more effort.
Having separate checking and savings accounts will help you spend money, limit spending to checking accounts, and accumulate a little savings at the same time.
Depositing some money in your stationary savings account every month is an extremely important and solid foundation in your financial foundation, and you can start to build that foundation right away. It is very important to always have something in an emergency. This is the beginning of a solid financial habit, which will benefit you throughout your life.
Thank you for reading this article.