The movie “Wall Street” narrates the story of a young and ambitious stockbroker, Bud Fox who is determined to make it to the top at any cost. He finds an unlikely mentor in Gordon Gekko, a ruthless and wealthy corporate raider. Gekko’s philosophy is simple: “Greed is good.”. Bud is drawn to Gekko’s power and wealth, and he quickly becomes involved in his mentor’s shady dealings. Bud soon becomes increasingly successful and corrupt. He abandons his values and morals, and he is willing to do whatever it takes to make money. This movie teaches valuable lessons about the dangers of greed and ambition.
One of the biggest problems associated with educational systems worldwide is that they don’t teach about finance. Most college students lack financial education and are naive enough to fall into serious debts in search of making quick money. Financial problems can adversely affect physical and mental health. Having savings and investments, no debts, and good pension and retirement plans is the way to financial freedom.
Saving Money
“A penny saved is a penny earned” – This famous quote from Benjamin Franklin rings very true even today. With high inflation today, the value of money in savings does erode over time. However, the peace of mind, stability and flexibility provided by saving still makes it very worthwhile. Saving is easier said than done in today’s consumerist world full of temptation to spend.
Importance of Saving Money
1. Emergency Fund:
Having cash reserves for emergencies like job loss, illness or major home/vehicle repairs is reason enough to make saving a priority. It is recommended having 3-6 months of living expenses set aside in your emergency fund so you don’t end up in debt when disaster strikes.
2. Retirement:
With longer life spans today, planning early for retirement is crucial. Having savings can help you to maintain your lifestyle post-retirement.
3. Major Goals:
We all have major financial goals during our lifetimes – higher education, vehicles, home down payment, vacations, etc. Saving up over time gives you the financial means to accomplish them without needing loans or financial aid.
4. Flexibility and Freedom:
Saving money gives you more options. You can make bold moves – switch careers, start a business venture, relocate easily or even retire early. Financial freedom opens up doors that may not be options for non-savers.
Tips to Boost Your Savings
1. Track your expenses:
The first step to saving money is to know where your money is going. Track your expenses for a month to see where you can cut back. There are many apps and budgeting tools available to help you with this.
2. Create a budget:
Once you know your expenses, create a budget that allocates your income to different categories, such as housing, food, transportation, and debt. Make sure to include some money for savings and fun.
3. Reduce unnecessary expenses:
Look for ways to cut back on your spending, such as eating out less, canceling unused subscriptions, and shopping around for better deals on things like insurance and cable.
4. Automate your savings:
Set up automatic transfers from your checking account to your savings account each month. This will help you save money without having to think about it.
5. Avoid impulse purchases:
Think twice before making a purchase. Give yourself time to cool down before buying something you might not need.
6. Set Saving Goals:
Having specific saving goals with an end amount and deadline helps motivate you to save for things you want—annual vacation, higher studies, vehicle purchase, etc. Calculate the monthly savings needed to achieve each goal by the target date.
7. Pay with Cash:
Using cash for small discretionary purchases creates a tangible impact and awareness of money leaving your wallet helping potentially curb spending. Leave credit cards home when possible.
8. Use Budgeting Tools:
Apps like Mint, Personal Capital and You Need a Budget along with Excel, pen and paper all help track monthly inflows and outflows. The visibility assists with decision making on saving more and trimming expenses.
9. Challenge yourself:
Set savings goals and track your progress. Reward yourself for reaching milestones.
10. Educate yourself:
Learn about personal finance and investing to make informed decisions about your money.
Cultivating savings discipline does not mean depriving yourself. Find the balance between enjoying life now and preparing for the future. Use some of the above tips to identify easy lifestyle changes or expenditure reductions. Consistently saving small amounts monthly builds footing for major life goals down the road.
Money is important, very important but it is certainly not worth sacrificing your love, career, family, ethics, and character for. You can’t be rich overnight, and there are no shortcuts. Hard work, smart savings, clever investments, and luck all play their own role.