young
Money is one of the most important things in the world. Without money nobody could survive. Hence it’s important to earn & save right from the young age. Money is very important or the most important thing in this world is because without money we can’t do anything, buy anything & enjoy our life. We all want to be rich , we all want to be super rich but it’s also true that not all of us can become rich. However, the important thing is not that we become rich or we are not able to become rich but the most important thing is we earn & save as much as possible , so it can give us a better life.
It is also very important for us not only to understand the importance of budgeting and saving but to understand the economy overall. As our personal savings & expenditure occurs within the economy of the country & world overall. So whatever we plan it is dependent upon the economy of the country & world.
Now we are living under the age of globalization, hence what’s happening around the world is very crucial.
Good Education
As far as possible our focus in childhood and the Teenage years should be to get a good education and study as far as possible. If someone is not at all interested in education then atleast studying till High school or few years of college should at least be done.
Education always helps in understanding things better, the difference between uneducated or less educated & the educated is the level of understanding. And that difference always stays in the level of understanding. However there are many who became billionaires without much education. But that should not be adopted as the ideal path , as education can only help.
Earning
Saving will depend on earnings, so how much one can earn that’s important. All want to earn more and more but it depends upon a number of factors. Occupation, education, experience, hardwork, luck all play an important role.
If someone is working in a field where the maximum salary is 5000 USD per year, then obviously that person can’t go beyond 5000 USD annually. Unless & until he starts his own business or goes to another field.
Certain professions have big income like Doctor, Architect, Engineer etc however it’s equally true there are many engineers who are unemployed. There are many who earn average or low, as luck plays a role.
Budgeting
Preparing a budget is very important. How much money is available & expected earning & expected expenses. Budgeting is very important & sticking to it is even more important.
If someone’s income is 5000 USD but he keeps making expenses of equal amount or more by way of Credit cards & loan then obviously there will never be savings.
Yes at times going out of budget is required but not frequently & that too without reason.
Youth Attitude
To an extent in youth mostly people are fond of wearing stylish clothes & nice shoes etc it’s natural & can be understood.
But the problem starts if you’re only earning to spend. Unnecessarily spending money is the biggest reason for lack of saving or no savings.
Golden Opportunity
Youth needs to realise if they want to be successful in life & have a great life ahead then youth is the best time to start it.
The more you earn & the more you save will help in your middle age & old age.
The significance of saving since youth should be understood by the fact that, if a person is saving a decent amount of his income for 10-12 years. After 10-12 years if he wants to start a business then he will have decent savings to start the venture. And in business if he got successful then maybe become rich one day.
Important Mistakes to Avoid
Some common mistakes which can cause youth to deviate from savings & successful life ahead can be discussed below.
1 ) Alcoholism & Drugs
One of the biggest reason why youth tend to deviate from financial stability is alcoholism & drugs. These kinds of things start slowly just for fun initially but later on they become a habit and unfortunately most of the time it ends up being a permanent habit. Actually what happens is initially you need less amount of alcohol or drugs but as you consume it for a longer period of time you need more quantity and also more frequency of the substance.
There are many youngsters who have deviated because of alcoholism and drug addiction. It is very important for the youth those who are planning to save money and to have a successful future ahead and financial security then it to really really a lot from this kinds of habits.
2) Show off Culture:-
Unfortunately there is a show of culture which is growing in the youth, there is too much of status symbol involved in everything. Life has become too materialistic and the youth tends to easily get attracted to materialistic things.
IPhone Craze
Recently the new iPhone 17 is being launched in India & there are long queues for buying the iPhone.
There are 2 Centres one In Mumbai & other in Delhi to buy iPhone. I had been observing the videos of journalists who are covering the story & who are interviewing the awaiting customers there. As There have been long queues since midnight.
Observation
Many of such young people who were buying many of them had not even started earning yet.
Some are earning but iphone is much bigger than their income capacity.
Some people say they buy each year.
While asked Reasons for purchase
Status
Youths said that holding an Apple iPhone creates a status in society.
Acceptance
By holding an Apple iPhone they have a wider social acceptance.
Credibility
By holding an Apple iPhone they feel they have more credibility.
Security
Youth also said that Apple iPhone are more secure.
Design
The youth also like the design of the phone.
Stylish
Youth finds the phone to be very stylish.
Note:
No doubt the Apple iPhone is considered a status symbol in modern society. And the Apple iPhone does have robust security features. However it’s very expensive and most of the youth which were buying the iPhone did not even start earning and some of those who started earning their monthly income was much lesser compared to the price of the phone. So they were buying it on installment EMI etc and most of them were purchasing the payment to be made by their parents.
There is nothing wrong in buying a smartphone or Apple iPhone or any gadget for that matter. Staying in touch with the latest technology is good. However, buying things which are beyond our financial capacity will not let us save money & do wealth creation.
Easy Money
Youth should be careful of getting attracted to easy money. There are many self claimed scholars who are giving advice on the internet on how to become a millionaire. How to earn 1 billion by being at the comfort of your home without needing to do anything special. Well If there was an easy option to earn 1 billion in a short span of time without doing anything special & by being in the comfort of our homes , then those self claimed scholars & investment experts would become multi billionaires by now.
Careful in High Risk Investment
Investing in trading, Share Market etc should be done carefully. Youth must understand the market and practice it on a dummy app. It’s important to study the market & practice before starting the real investment in the share market.
And real investment should start slowly with small amounts & not getting tempted & making massive investments at the entry point.
Controlling Greed
It’s important to be ambitious but not to get carried away in greed. Controlling greed is very important from a financial stability point of view. Those who can’t control their greed tend to lose money quickly & then come under the burden of loan etc.
Avoiding unnecessary expenses
It’s important to avoid unnecessary expenses & saving money as it’s easy to get carried away in temptation & making a lot of unnecessary expenses.
Saving & not being Stingy
People often confuse saving as being Stingy. However that’s totally false , saving doesn’t mean being Stingy. Whenever required & necessary to spend money.
But the real art is knowing when to spend & where to spend & how much to spend.
That’s the art of saving.
Understanding Economy
It’s very important to understand the national as well as global economy. Understanding the political realm which decides economic policies. It’s important to understand the impact of the national budget on your personal budget. It’s important to keenly follow the political & economic developments around the world.
Wealth creation
The focus of the youth should be on earning, saving and generating wealth. Youth is the best time for wealth creation, wealth creation chiefly means investing money in gold, buying property land etc. something which will create wealth.
Conclusion:-
Savings are very important for everyone & more so for the youth. Savings is directly related to earning & budgeting. It’s needless to say that budgeting is successful only if we can stick to it. Yes of course there will be emergency & extra ordinary situations when we need to exceed our budget & at times well over the budget. And honestly that is the purpose of budgeting & savings. It is to meet such extraordinary & special situations and be prepared to face them without needing to ask others for money.
As important as earning, budgeting, and saving are equally important is understanding the economy. Not just the local economy but the global economy. In order to understand the economy, close eyes must be placed on the political realm. As it’s the political fabric of the world which decides policy. The reason is that the youth should know which political party is better for the economy & whom they should support.
It’s very important for the youth to understand the economy. National Economy & the world economy For Understanding Economics
It’s important to control our greed being wise & not falling an easy prey for frauds. It’s important to do a deep & thorough study of high risk investment before investing. It’s important to consider our future & unexpected things which may arise in future.
It’s important we start saving & not being Stingy whenever necessary & required. The real art of saving is knowing when to spend , how much to spend & where to spend.
I hope we all use the Wisdom given by God to us & start saving for a secure & better future ahead.
By: AMIT LAXMICHAND GALA
Write and Win: Participate in Creative writing Contest & International Essay Contest and win fabulous prizes.
About the Author
