As young kids we couldn’t wait to get our allowance. We couldn’t wait to do some chores for Grandma or Grandpa just for a few extra bucks to spend. Those were the days. Those were the days when your most costly expense may have been some popcorn at the movies or the entrance fee to the community pool. Financial priorities, like most things from childhood and adolescence, have a tendency to change. As we grow into adults and transition from being kids to having kids of our own, money and financial stability becomes much more important than it was in our bike riding and trick-or-treating days.
As we age we see a change from fixed costs to variable costs in our lives. We have fluctuating utility bills, car payments, food, filling out federal tax forms rent, and college loans to worry about. We also need to figure out how to pay all of our bills and still have money left over for clothing, gas, and miscellaneous expenses. All of these reasons are why saving money as we grow is so very important to the level of comfort we have in life.
There are many ways to save money early on in life. When your children ask you for an allowance instead of putting that money in their pockets, put it in a savings account. That money will accumulate and when your children are ready to use it, it could go a long way towards a college tuition, a new car, or their wedding day.
Saving money for yourself can be even tougher than setting some aside for the young ones. There are always bills to pay and when we have a few extra bucks laying around it is always nice to use them to pay some extra on those credit cards. The easiest way to save money is to have money taken directly from your pay check and deposited into a savings account, deferred compensation program or 401K retirement plan. This money never reaches your checking or banking account and therefore never gives you the chance to spend it. It is a nice surprise when you get a statement that you can see has grown without you having to do a single thing to manage it.
Sure saving money can be tough but with careful planning and motivation to make it happen it can certainly be done.