People spend most of their time working in order to earn the necessary finances needed to sustain life. Unfortunately, not everyone can be able to reach the desired level and thus end up feeling as though they are barely making ends meet. We are currently living in a society where making money is not that hard. This is because change in technology has brought about online jobs that earn individuals money from the comfort of their home. There are some ways that will teach you to live a successful life and how to spend your valuable money.
However, regular advertisements and marketing together with the current trends i.e YOLO (“You Only Live Once) and FOMO (“Fear of Missing Out”) make people purchase things that they had not planned for. Most of them do not even care about the price of the item or how important the money is to their life.
It is for this reason that you will find an individual looking for part time jobs such as online surveys that pay through PayPal to earn that extra cash. However, you will still find someone complaining about having insufficient funds. To solve this problem, you have to account for every coin that you spend, save money with discipline while at the same time sharing these skills with your children.
Fortunately, we still have the time to change the way we view and spend money if we are to make life better for the future generation. This can be done by teaching our kids the value of money and how to stop depending on pay check to pay check in order to get a better life. Here are some of the solutions that will help save the future generation by reducing our debt and learning to live within our means.
1.Use the best methods that help you minimise your spending
In a world where many people are obsessed with materialism and current trends, it is necessary that we look for the best way to spend or not to spend. A look into the lives of very successful people in society will reveal how they are disciplined when it comes to spending money. Actually, they know the real value of their money and therefore use it in the most convenient manner. You will therefore never find them struggling with life as is the case with people who are living paycheck.
To make good use of your money it is important you understand that one can only spend a dollar once. Your success will ,therefore depend on how you decide to put the dollar into use. Those who misuse their earnings are at a greater risk of struggling with life as opposed to the ones who make good use of their salary. We should also teach our children how to make smarter spending decisions if they are to have a brighter future.
2.Learn the Value of Money
Learning the value of every money that you make is very important if you are to enjoy your life. If you look at your first job, you will realise that you may have failed to learn how to get the most out of your hard earned money. This may have been different had you came across someone who was willing to teach you more about the value of each dollar earned.
The good news is that our children will not have to go through the same problems when they make their first dollar. However, this can only be achieved if we teach them the essence of learning the true value of money. You must, therefore be ready to help your kids maximize their hard earned money by teaching them important life skills.
Strategies for smart spending
There are so many strategies that we can use in order to spend our earnings wisely. These strategies should be passed on to our children if they are to live a comfortable life by having a good insight of what the society expects from them. Some of the strategies that we can implement to spend money smartly are explained below:
- Comparison Shopping
Companies are quite good at advertising their products in order to attract more customers. They will therefore lure you into buying what you do not need thus leading to the mismanagement of funds. You should however shun away from buying what you do not need or simply look for the best prices when making a purchase. This can be achieved by putting into consideration factors such as longevity, quality, store policies and warranties.
- Save First, Spend Later
Saving should be the first thought that comes to your mind after receiving your pay check. By saving first, individuals put themselves in a situation where they can make wise decisions since you will be having less money to spend. This action also tends to make us put more emphasis on the principles of shopping and opportunity cost when purchasing goods and services.
- Opportunity Cost
People should start looking for alternative solutions that will help them in creating some more value for their hard-earned money. By making use of opportunity cost principle, you will be able to choose the best option from the wide range available.
- Earn to Spend
People earn money so that they can spend it on important needs such as food, clothing and household stuffs. To spend money in the best possible manner, you have to find a reason as to why you really need the cash. For instance, you can calculate the number of days that you need to work if you are to buy a new car.
Without financial knowledge, the future of our children and the entire society will be in jeopardy. This can only be avoided by helping kids understand the real value of money through open conversations and financial games. In addition to this, we can also help them learn to avoid the societal debt-driven trends thus making it easier for them to start investing. By following all the rules of spending money effectively, we will be able to make the future generation better.