Julia 2 – Long Beach Polytechnic High School

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A Safe Future

 Not having enough money gives you stress and fear. It may put you in a depression and panic. Being in debt will give you a hard time and will take time to overcome. Money issues can be solved as your life begins. All you have to be is prepared. When you are a young adult, money can be saved in multiple ways. Saving and securing your money is the key to a successful financial future.

“The way to build your savings is by spending less each month,” said by Suze Orman, a financial advisor that is known to be America’s most recognized expert on personal finance . In order to learn how to save, you manage your money and evaluate your necessities. Organize your money after taxes by setting your priorities analyzing your income. Remember that there is a difference between wanting something and needing it. Working is extremely helpful if you get benefits along with your paycheck such as healthcare and compensation time. Income taxes, federal and state, must be paid. Tax returns are important to file so a record is made that you paid. Set goals on your financial records. Having a smart budget helps you to control your essential expenses, for instance, food, vehicle costs, gas, and mortgage or rent. Think about the costs of buying a home and renting a home. While you go over your income, focus on how much you can afford and how much you can save. Be aware of what you spend your money on and look for cheaper alternatives.

Set up financial security for your future. Make a savings account early and, that way, the interest rate can multiply your money into more as the years go by. Include a 401k as some financial security to save money before taxes pile on. The money comes out of your paycheck before you receive it. There are guidelines that must be followed and mutual funds that are offered. Mutual funds can either give you a small gain or a small loss. It is an investment program to the money market, and an index fund is a type of mutual fund that tracks the money market index. An IRA, individual retirement account, is another great way to save for the future. You would be able to grow into money through investment while paying fewer taxes, if in the Roth way. In the traditional way, you would pay taxes after you retire. Your taxes would lower because your income would be lower due to a part of it being saved. Investments are terribly risky. Steady sticks and bonds are what to shoot for when participating in the market. Stocks are fast but unstable, and bonds are conservative but slow. Pay attention to interest rates and pay your loans as soon as possible. Appreciate compound interest because it can multiply your money which is why it is thought to be the 8th wonder of the world.  Understand your opportunity costs. Make sure you do not get cheated out of your hard earned money.

A goal that everybody should have is to have good credit. Buy what you need and not what you want. Be disciplined and responsible about your actions of purchasing items. Pay your credit on time or suffer the consequences of collectors going after you or going bankrupt. Keep your eye on your credit score in case it goes up too high through overspending and buying carelessly. Problems with credit can stop you from buying a house. Look for credit cards with low interest rates because it means you pay less over time. Follow credit laws and contain a healthy credit record. From Warren Buffett, the most successful investor in the world that currently has a net worth of $66.7 billion, “Do not save what is left after spending but what is left after saving. Watch how your money is spent and control it. By saving and prioritizing, you are managing your money.

Bad financial decisions can affect you for the rest of your life and whoever you choose to involve with your money issues. Have a good start for yourself and your future family. It is how the world works, revolving around money. Managing your money leads to mastering it. Take charge by preparing for your future early. Protect your financials, collect some savings, control your credit, and think before you spend.