Why it’s never to early to start thinking about your personal finances
September 11, 2023 | Written by Alisha Chowdhury | Est. Reading Time = 3 mins
Rediscover Your Relationship with Money
When's the last time you stopped and thought about your relationship with money? A strange question, right? Yet, it's at the center of everything we do – from our daily needs like housing and education to our wants, such as snagging those limited edition sneakers or enjoying a night out with friends. Money is both a ticket to memories, like that epic concert last summer, and a cause for headaches (tax season, anyone?).
Understanding money – or personal finance, to get technical – isn’t just about being able to pay for things, though. It's about achieving happiness, well-being, and freedom. Yes, we all dream of retiring early, lounging on a beach without a worry in the world, but how do we get there? By grasping the multifaceted role of personal finance in our lives.
If you're wondering, "What on earth is personal finance, and why should I care?" – you're in the right place. Welcome to your money mindset makeover. And just so you know, the best time to embark on this journey? Right now.
Understanding the Pillars of Personal Finances
Let's simplify it a bit. Think of your favorite celebrities. Ever notice how even siblings with similar backgrounds can differ vastly in wealth? Or how about this mind-boggler: sometimes, earning less can actually leave more in your pocket at the end of the month, depending on your job role and tax bracket. And if someone tries to equate crypto with a simple savings account, you might want to think twice.
It all boils down to mastering five elements:
Saving – Building up that cash reservoir.
Spending – Making those purchasing choices that reflect your lifestyle and aspirations.
Borrowing – Navigating the world of loans and credit while staying disciplined.
Earning – Increasing your wealth, be it through a job, a side gig, or entrepreneurial endeavors.
Investing – Wisely deploying your money for a brighter, cushier future.
Sounds overwhelming? Not to worry. Think of these as interconnected puzzle pieces. And while each is important on its own, it's when you fit them all together that the true magic happens.
Mapping Out Your Financial Adventure
Imagine this: a sleek gaming console next year, a car in 7 years, and a peaceful retirement in, say, 35 years. These are your financial goals. Just like you wouldn't embark on a road trip without a map, navigating the financial journey requires setting and tracking these targets.
Financial goals are much like the travels you dream of. Some are short sprints, like saving up for a weekend getaway. Others are marathons, like planning an overseas adventure. Then there's the lifelong odyssey – achieving financial independence.
The first step? Pen it down. As simple as: "I aim to save $500 for a smartphone in half a year." Use tools and apps to keep you on track and, most importantly, break those goals down. The idea of saving $1200 annually might seem daunting, but $25 a week? That's a meal out!
Remember, while the path to your goals might not be a straight arrow, deviations aren’t failures; they’re just detours. Celebrate your milestones, no matter how tiny, adjust when needed, and always keep your end-goal in sight.
At Mongo, we’re on a mission to redefine financial education for young adults. Personal finance isn’t just about numbers; it's about unlocking experiences, freedoms, and dreams. So, embark on this journey with us. Dive into our bite-sized, gamified video content and let's make money matters not just understandable, but downright groovy. After all, there's no better time than the present to get financially savvy!
Disclaimer: Our blog is for informational purposes only, you should not consider any such information or other material as investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by Mongo App or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction. When investing your capital is at risk.
