Please Help for me to How to Manage a Money ?

Question

I am 20, graphics designer, earning in well. But I have bad habit of spending money and not to save money. Whatever I earn, I spend in smoking and movies. I am alone, when I was 10, I have lost my parent. Please Help Me. I have been insulted almost all the time for this bad habit, by friend and others. Please Help Me. How do u all save ur money. I don't know why but I don't care of money, I don't love money. But Now when I have no money, I realise my mistake. But don't know any thing about money management. Please Teach me money management. How to u all people manage in their less salary, and why I can't

Answer 1

20 years old! Your whole life ahead of you! How great & exciting!

Sorry for such a long answer but I'd like to help you think what you are going to do to help yourself.
Okay,
Spending all your money tells me you are trying to fill a void in your life and/or avoiding your life or potential life. (Most people think it's simply having a "good time" but no, in my observation it's usually a void or avoidance.)
I think that is why you are having trouble saving money, subconciously you are constantly trying to make yourself content (or something) and it isn't working so you keep doing it...but what do I know about you right? It's just a feeling I got, sorry.

Trust me, buying things won't fill an emptiness you feel... it never will. Spending your money won't allow you to get a life either...let me explain...
Whether we like it or not money allows us the opportunity to live a life we would like... if it's having a house, wearing decent clothes, paying regular bills, eating well, having a car, enjoying hobbies, travelling or whatever.
(Myself, I don't love money or care for it either but it sure helps to have it in our society just to live.)

It isn't too early for you to ask yourself what you want in life or how to you want to live your life.
Set goals...
Do you want a house? a large property? a condo?
Do you want to retire early? Do you want to travel? Will you get married? Do you want to have children? Do you want to go to school for something else? Will you remain in graphic design?

Once you decide, (even if it isn't something specific) you just have to take action and start saving... If you have a goal, you'll know how imperative it is to save money to achieve it.

Little things add up over time... a cup of coffee from a cafe everyday... let's say is $1.25 multiply by 5 days a week...(260 days times 1.25) that works out to 350 dollars a year just for coffee!
So, imagine that with your cigarettes, your movies, perhaps other beverages and other habits...
(A friend of mine quit smoking & drinking, he had $8,000 extra at the end of the year!)
You could easily put that into a savings account.

You asked how we save money...
(I do have a good paying job... I just chose to live like I make less.)
My motivation is... I don't want to work 6 days a week at my job nor do I want to stay until I'm 65 years old.
Personally I also keep the environment in mind when I shop or do anything, this helps me save alot too.

I don't have a set formula but it works for me/us.
It's a matter of simplifying your life to something comfortable and manageable... you have to look at the "big picture" (of your life).

We don't smoke or go out to eat or drink every week (cooking is really fun I find) Drinking is for holidays or weddings. We make coffee at home and bake goodies ourselves. Always eat quality food...never skimp on that.
We go to the movies maybe once every 2 months... we rent movies or borrow them from the library or from friends to watch at home.
I drive a 15 year old car which I get maintained regularly. I commute with others to work. I don't require dress clothes for work so I get them at second hand stores for less than 1/2 the price (there are new clothes there).
I care for the nice clothes I do have and make sure I buy things that have a timeless quality about them...nothing trendy.
I buy used furniture to fix up (I hate new furniture, the glue stinks too much.)
We don't use chemicals in the house, all earth friendly cleaning.
I use basic personal everyday items, nothing too fancy.

When I shop I ask myself do I really NEED this? Do I need it NOW? or can I wait until it goes on sale? When it goes on sale sometimes I'll get it other times I realize I can live without it.
If I buy something I make sure I can afford it, I never put anything on my credit card unless I can pay it in a month...I never pay interest on the card... those companies make enough money, they don't need my cash...I do.( LOL!)

I buy bulk food items and store them properly.
I buy seasonal vegetables when the price is low and freeze appropriatelly...haven't started canning yet but eventually.

I enjoy simple things in life more than ever.
We don't live extravagantly. If we want to camp we rent things instead of buying stuff to have sit around. (It would be different if it was a regular activity)
Don't get me wrong I do love gadgets and technology... I just wait to see what's next to come out or wait until the price goes down.

After doing these things (& so much more) I check my bank account and decide to invest my money.... that way I earn more on my cash and I'm not tempted to spend it. When it matures I often reinvest it because I'm not desperate to use it.

I think it's also recommended that you have saved enough cash that you have access to to live off of for at least 3 months... just incase you lose your job or an accident happens or something unexpected.

I hope there is something in all of this to give you an idea what or how to do it for yourself.
What else could I say but go to your library and read up on saving money... I read the "Wealthy Barber" years ago and many things gave me ideas that worked for me.
I would also recommend looking at websites that are about being "frugal" or "stretching your dollar".

Bottom line.... Put away as MUCH as you can and enjoy yourself with as LITTLE of it as you can.

Hope this helps because I took up quite a bit of your time.
Good luck and happy saving!
_______________________
I just read the last answer after I submitted my novel...
sunshine's answer is great!
With your age that will really work!
I do that too actually in a different account.
Hope you can do it.

Answer 2

set up an automatic savings plan with your bank and have your paychecks automatically deposited, and have the bank take out $50 from each check to go toward savings. If you never see it, you won't spend it.

If your employer has a retirement plan, sign up to participate in that. Even though at age 20 retirement seems like a million years away, if you save now you will have almost 50 years to build that money and even a little bit socked away now will really pay off later. Your "old" self with thank your "young" self for planning that. Many employers match your contribution, so if you put in $1, the might put in 50 cents, and that is like found money! Take advantage of it!

Answer 3

You need a spending plan. Write down all of your spending for one month to see where your money goes and determine which items you can cut back on. $4 coffee??

Answer 4

This man is the authority on all of the financial questions you asked.


www.daveramsey.com


Good luck and Happy New Year!