Cloe H. – Mater Dei High School

The Benefits of Industrious Living

Young people today have the problems of overspending, massive student loans, and crushing debt. While this can be overwhelming, there are ways to fix these problems, becoming better savers while maintaining a healthy lifestyle. By setting practical limits, planning for the future, and using technology to their advantage, college students and young adults everywhere can change their lives for the better.

By setting budgets and refraining from materialistic desires, young people can be more financially aware. For instance, the “zero-based budget” allocates every penny spent, designing a monetary blueprint. Dave Ramsey, author and personal finance expert, explains how to “make income minus… outgo equal zero” (Johnson 2017). Thus, nothing gets wasted, and every dollar goes into supporting a person and their savings. Another important asset is the ability to distinguish luxury and necessity: “Financial needs are expenditures that are essential for you to be able to live and work,” writes Courtney Jespersen, retail expert, “Wants are expenses that help you live more comfortably” (2017). In other words, sorting out needs versus wants simplifies budgeting as a whole, unifying the processes as one.

Equally important are savings accounts and retirement plans, which allow clients to set goals and strategize for the future. Automatic transfer is an impactful tool in savings: “Everyone should have a savings account,” claims David Weliver, founding editor of Money Under 30, “But… for the goals you have and not when you’re strapped for cash” (2018). Additionally, keeping this new account with separate bank lowers their risk of putting funds back into a primary account and washes away the temptation to overspend. Another way to prepare for the future is by setting up a retirement plan. Katie Lobosco, writer for CNN money states, “If your employer doesn’t offer a 401(k), you can contribute to an IRA or Roth IRA to save for retirement” (2017). Young adults should always have a retirement plan that suits their needs. For example, a Simplified Employee Pension, or SEP, is especially for young entrepreneurs and selfemployed business people. Researching retirement allows people to individualize it to their needs and continue to be current with every update. Setting forth monetary saving targets will secure this generation as determined, hard-working people who are not afraid of the future.     Fortunately, young people today have the opportunity to use technology to their advantage. Many applications are available for tracking investments and savings plans. In particular, the cost-free Mint app allows its customers to view, “recent transactions… account totals, monthly budget, credit score, spending organized by category, and even alerts for when you go over budget.” Another app, called BillsGuard, gives insight on spending habits and protects users from fraudulence through transaction reviews (Daily Worth 2017). These interactive technologies simplify budgeting, allowing clients to see their assets in a new light.  With smart budgeting, plans for the coming years, and the benefits of electronics, those in the prime of adulthood can relieve stress and live comfortably. This generation will celebrate success as they overcome every economic obstacle.  Through this, they will unearth a great truth in the boundless benefits of industrious living.