When you get your first job, a promotion or a raise, it can be tempting to celebrate by going on a spending spree. It’s difficult to think long term rather than instant gratification. Try to avoid falling under the spell of the following financial lures.
This may be your only chance. If you don’t go out and buy that new televison, fancy apartment or trendy wardrobe now, you may never have the chance again! Yes, you are only young once, but that doesn’t mean that fun and excitement wears off when you are older. No life stage is better than another – don’t use your age as an excuse for being irresponsible with your money.
Save the boring money stuff for when you’re older. It is never too early to start saving for the future! Retirement may seem far off, but you will be happy when you enter retirement and have plenty of money to support yourself and enjoy life. Also, you can put away less each year when you start earlier. If you invest $8,000 per year when you leave college, you can accumulate $1 million by age 65 – if you start at age 45, you will need to put aside $30,000 per year.
You will make up for the spending later. You have a job now, so you can only move up, right? Not necessarily! The economy changes and so does the demand for employees with certain expertise. Don’t expect to keep getting promoted and receiving higher pay; it’s just not realistic. No one can predict the future, so it is unwise to count on it.
Money and nice things will make you happy. This is where the instant gratification comes in again. You may feel happy in the moment when you buy those new shoes, but do they really make a difference in your overall happiness in life? Shift your attitude to thinking about the future and what truly matters.
Courtesy of Money Crashers
http://www.moneycrashers.com/benefits-downsizing-life-living-lean/
