Roslynn – Long Beach Polytechnic High School

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Work Smart, Not Hard

Let your money work for you, not work for your money. Many young adults struggle financially due to not fully understanding the concept of the “want and need” principle. In order to financially secure our retirement plan, we must understand the difference between a “want” and a “need”. In addition, investing and budgeting one’s income can further secure financial stability. As a generation that is evolving to more technological advances, many young adults want to stay with the current trends by using the money that can be used for future use to buy a new “smartphone”. Instead of using that money in the present, the money can be put into an account for the future and will increase in time because of compound interest. It is essential to know how to spend one’s money wisely because it is a key reason to being financially secure in the future.

Some people adamantly believe that it is better to have a “smartphone” now than to have a steady retirement plan that will build interest over the years. It is advised that about 8% of your salary should go towards a retirement plan or any account in order to ensure financial security. On the other hand, many young adults tend to stray away from saving and use the money to get their “wants” instead of their “needs”. Take into consideration that most of the money that they are given is not theirs, it is the money that is given from their guardian; and because it is not their hard earned money, they feel the need to spend it on their “wants”. Suppose a young adult were to have a part time job alongside school, not only would they develop life skills, but also learn how to spend their money wisely. It cannot be denied that knowing the principle of a “want” and a “need” is what will make the future of young adults successful.

Budgeting is also significant because without it, one would not be able to be financially stable. Budgeting is to balance between the amount of money that goes towards necessities, such as bills, living expenses, and loans; and the money that will go towards personal expenses, wants. In order to budget efficiently, one must understand how much money should go towards paying necessary bills and figuring out what to do with the money that is left from the paid bills. One way to budget sufficiently is to put a percentage of the money left into a 401k plan which is a retirement plan that builds up over a lifetime and when the time comes to retire, there is enough money in that account to be able to live off of it for the rest of your life. In addition, investing in the 401k Plan allows the money to grow faster because certain companies will match the contribution. There are many ways to budget so that in the future you are financially secure. Most importantly, what you do with the money left spent on your necessities shows how well you will live you r life in the future.

The impact of investing shows how well someone does in the future.  Investing is very important because it is what makes you financially stable. Without investing, there would not be successful businesses or people in general. The importance of investing is apparent throughout the whole world. An example of investing would be to put money into a saving account, so that when times get rough, that account is something you can fall back on. The more common term with investing is contributing money into a stock or a franchise and a percentage of the profits made from the shared stock or franchise will go towards your account.  Investing plays an important part in one’s life because without investments, the economy would not be what it is today. Although there may be times in which the stock markets or the franchise might fall, but taking the risk of investing is what makes allows others to grow from their mistakes and learn to when to take risks. Ultimately, there are cons to investing, but knowing when to invest and understand how to budget; the pros outrank the cons.

The main reason to save and be financially stable is so that in the future you will not have to struggle living paycheck to paycheck, but rather have an abundance of money to where you can share your wealth amongst the world. Similarly, by understanding the principle of a “want and need”, budgeting, and investing, as the next generation, we can live a life free of worry because we will know how to plan and secure our finances. When you have money that has accumulated through compound interest, you can use that money towards philanthropy. Not only will you be recognized for your actions, but you will also make a difference with your kind gestures. On a final note, maybe a “smartphone” does not define how “rich” you are because you are up to date with trends, but in the future when you are financially secure, that “smartphone” may not have as much value to you as it did before.