Making money is easy for some and difficult for others. Spending however, is something that most people do find easy to do. Yet, how many times have you heard somebody say that they wish they had done something different with their money?
It is never too late to learn and to avoid the costly pitfalls. And to avoid common money mistakes and make smarter financial choices.
The 3 things you should start doing or be already doing with your money right now are
- Do Not Spend It Immediately
When you receive money do not rush to go and spend it. Keep it with you for a while. This is a very good way to practice deferring pleasure. Or saving the moment.
If you cannot trust yourself to keep the money at home, to keep it in your mobile money account or any other cash account-take it to the bank.
Putting money in bank account will get it out of your hands. And give you time to think about what you should do with it.
- Park it in the right account
Do not leave your money in a current or ordinary savings account. Move it to a term deposit, commonly known as fixed deposit account. Many banks offer this service. And opening a fixed deposit account is a quick process. However, before you open the account learn how things work and what the benefits are for you.
Any bank employee worth their title will be able to explain how the deposit account system works. And they will be able to explain to you about capital and interest. And they will be able to inform you about what kind of costs or penalties that are associated with having a fixed account.
- Have a plan in place for it
Yes, plan. The reason is until you have control of where their money goes it can leave as quickly as it came. For this reason, planning is something you must do before the money comes in.
Do not wait for the money to come in and then start figuring out where it should go. Figure it out before the money comes. There is no nicer way of putting this but, it takes discipline, especially when you start moving towards the 30s and 40s, to stay strong and keep to the plan. So start early and research high-interest savings accounts and taking time to plan how it will be spent. Ideally, you should already be conversant with budgeting by now but just in case here is a reminder.
By the way, do not think, you’re too young to be doing these money moves. With money there is no too young. There is however, too old.