Bible Money Matters

Christian personal finance

Menu
    • About
    • Archives
    • Contact
    • Close
  • Making Money
      • Popular Articles

        • 50 Ways To Make Money: Maximizing, Creating And Increasing Your Income
        • 10 Weird And Unconventional Ways To Make Money
        • Making Money With A Blog (e-Book)
        • 10 Places To Sell Or Trade Your Unused (Or Broken) Electronics
        • Ways To Make Extra Money Series: 20 More Income Generating Ideas From Our Readers
        • Making Side Income Can Help Blunt The Impact Of Becoming A One Income Family
        • Earn Cash Back With Discover it® Credit Card
      • Recent Articles – Making Money

        • Best Sites Like Fiverr To Make Money As A Freelancer
        • 13 Of The Best Independent Contractor Jobs
        • 25 Of The Best Gig Economy Jobs
        • How To Make Money Blogging: Turn A Blog Into A Business
      • Categories

        • Making Money
        • Investing
        • Retirement
        • Jobs & Work LIfe
        • Money
        • Income
    • Close
  • Saving Money
      • Popular Articles

        • 50 Easy Ways To Save Money Every Month
        • 10 Weird And Unconventional Ways To Save Money
        • 10 Practical Ways To Save Money And Increase Your Net Worth
        • How To Save Money On Just About All Of Your Regular Monthly Bills
        • Ways To Watch TV Without Paying An Arm And A Leg For Cable TV
        • Save Money On Your Hospital Bill - Just By Asking
      • Recent Articles – Saving Money

        • How To Save $100k In 7 Practical Steps
        • Stairs App Review: Save And Invest To Earn 4-6% Interest
        • Honey Review: Save Money Automatically When You Shop Online
        • 9 Convincing Reasons Why You Need An Emergency Fund
      • Categories

        • Saving Money
        • Frugality
        • Planning
        • Finance
        • Saving For Retirement
        • Savings Accounts
    • Close
  • Banking
      • Best Rates For 2019

        • Best Credit Cards
        • Best Savings Accounts
        • Best Mortgage Rates
        • Best CD Rates
        • Best Brokerages
        • Free Credit Scores
      • Recent Reviews

        • TradeStation Review: Commission Free Stock And ETF Trades
        • Firstrade Review: Commission Free Trades on Stocks, Crypto, And Options
        • Cadre Real Estate Investing Review: Commercial Real Estate Investing
        • Axos Self Directed Trading Review: Invest, Trade Stocks For Free
      • Categories

        • Bank & Software Reviews
        • Investing
        • Credit
        • Banking
        • Mortgage
        • Insurance
        • Family Budget
    • Close
  • Recommended
  • Video
    • Close

5 Things About Money I Wish I Would Have Known When I Was Younger

By Bob Lotich 9 Comments - The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited March 2, 2013.

Share6
Pin
Tweet5
Share
11 Shares

Sam Ewing, who used to play baseball for the Chicago White Sox, once said, “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”

Many of us may feel that we can never quite catch up with our money, but one thing is certain: There are many things about money that we probably wish we had known when we were younger. For those of you who are still young or even young at heart, here are five things about money that you should probably think about.

Quick Navigation

  • 1. Compound Interest
  • 2. Learn to Use a Monthly Budget
  • 3. Just Say NO to Credit Cards
  • 4. Cash is King
  • 5. Save Early and Save Often

1. Compound Interest

If you can save money at a young age and invest it in a quality mutual fund, you can become a millionaire by the age of 58 with only a small investment. That’s the beauty of compound interest.

Consider this scenario: Beginning at the age of 19, Jane invests $2000 per year ($167 per month) into a mutual fund with a 12% rate of return. She continues to invest $2000 per year into that same fund until she reaches the age of 26. From the age of 27 on, she invests nothing. This gives her a total out-of-pocket investment of $16,000. By the time she is 58, her $16,000 investment will have turned into $1,035,425! It can be difficult to find a fund consistently earning 12%, but even if it is only 10% the power of compound interest still works quite well!

2. Learn to Use a Monthly Budget

A monthly budget is the single most powerful tool you can use to keep tabs on your money. If you aren’t able to see where your money is going each month, you’ll have no way of knowing where you’re overspending or where you need to change your spending habits.

3. Just Say NO to Credit Cards

Remember what we said about compound interest? Well, credit card companies love compound interest. In fact, many of these companies charge interest rates of over 18%. Pretty good return on the money they’re loaning out, isn’t it? The single biggest problem with credit cards is that when you max out the card and only make minimum payments, it will take you forever to pay off the card and the interest that you pay will be much higher than what you originally owed. Even the best credit card rewards don’t make up for all the interest paid if you are paying monthly miniums. Instead use a cashback debit card like Perkstreet Financial which pays just about as much as any credit card rewards.

4. Cash is King

If you budget your money and set specific goals, you’ll be able to use cash for all of your purchases. If you use cash for big-ticket items, you have bargaining power. Most people in the U.S. are afraid to bargain with retailers. Doesn’t it seem strange that when you travel to almost any other country in the world, marketers actually expect you to dicker?

When you bring cash into the store it does a couple of things. First, using cash gives you a sense of the value of the item. It’s much harder to part with the dollars than it is to just put it on a credit card. Guess what? Retailers know this. People who use credit cards for purchases are much more likely to buy more. Basically, it doesn’t hurt as much when you use a card. When you count out that cash to pay for an item, it’s kind of like saying good-bye to a good friend.

Cash enhances your bargaining ability. When the salesperson tells you the price of the item in question, the first thing you can ask is, whether or not you can get a discount for using cash. The answer is usually yes. If it isn’t, you can always go to a store where it is. Using cash also puts a top-end amount that you’re willing to spend. If the item is higher in price than what you have, you can always tell the salesperson that you only have x-amount of dollars. It may take a couple of trips to the manager’s office, but most of the time, you’ll be able to negotiate the price of the item down to what you have.

5. Save Early and Save Often

It’s much easier to save money when you’re young. If you’re in your mid or late teens, you probably live with your parents. This means you have no real living expenses. If you have a job, you can put most of your paycheck into savings or investments. Remember what we said about compound interest? Put your money in a quality mutual fund and be ready to retire early.

Another reason to start saving early is to establish it as a normal habit. Once you’re out of your parents’ house, it’ll be much harder to save. If you’ve established saving as an important goal, you’ll be much more likely to continue a habit that you’ve started early on.

Many of us wish we could have “do overs” in our life. The way we handle money is usually one of them. If you’re still young, begin practicing the items listed above and reap the rewards as you get older.

Related Posts

  • Love of Money

    Today's Bible Verse on money comes from 1 Timothy: "People who want to get rich fall into temptation and a trap and into many foolish…

  • My 5 Biggest Money Mistakes

    When I look back on my financial life, there are a lot of things that I've done that I should've done differently. I've made bad…

  • Personal Finance Bible Verse Of The Day: Money Can't Buy Everything

    When Simon saw that the Spirit was given at the laying on of the apostles' hands, he offered them money and said, "Give me also…

Share6
Pin
Tweet5
Share
11 Shares
Last Edited: 2nd March 2013 The content of biblemoneymatters.com is for general information purposes only and does not constitute professional advice. Visitors to biblemoneymatters.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.

This article is about: Commentary, finance

About Bob Lotich

Bob enjoys dark chocolate, paying off debt, giving, Foosball, loose-leaf tea, and helping people succeed. He started ChristianPF in 2007 and Co-Founded Blogging Your Passion in 2011.

Comments

    Share Your Thoughts: Cancel reply

  1. Jason @ Redeeming Riches says

    That was cool to see Bob’s name as the “guest poster”! Amen to the saying, “NO” to credit cards. I fell into the trap of thinking credit cards were there for me to get whatever I wanted, whenever I wanted. Big mistake I wished I would’ve realized before I racked up a bunch of debt!

    Reply
  2. Carol@inthetrenches says

    You are so right that it is best to learn these things right out of the shoot. Most of us mess it all up and then have to go back, fix it, and start over. (Sometimes more than once.) These would be excellent dinner time topics to share with your children. Even a small child can have a piggy bank.

    Reply
  3. Jenna says

    Start a Roth IRA the year you turn 18. That is something I wish I would have started when I was younger.

    Reply
    • Peter Anderson says

      You can even start one earlier if the child has earned income! Why not start their roth when they get that first job with income reported to the IRS? There is no age limit – just a requirement for earned income!

      Roth IRAs

      Reply
      • Jason @ Redeeming Riches says

        Great point Pete! Put that babysitting and lawn mowing money in a Roth. Of course, you’d have to report that first! ;)

        Reply
      • Jenna says

        Really?! Dang it! I could have started one when I was 16 then. Man, that is depressing.

        Reply
  4. Bob says

    I starting working at 13, if only I had known Pete then to give me such sound advice! ;)

    Reply
  5. Andrew says

    Love these ideas. My favorite is compound interest. Even though I know how important it is, it still always amazes me when I look at real examples. Being smart with your money can have huge returns down the road.

    Reply
  6. David/moneycrashers says

    I also wish I would have known “the reasons for taking care of your stuff”.

    I’m going thru that now with my 3 year old. He doesn’t understand that if you take care of something, it you won’t break as quickly which either means that you won’t have to spend time and money fixing it as quickly, or you won’t have to replace it outright as quickly.

    Reply
Previous Post: How To Get A Spouse To Start Budgeting
Next Post: How I Keep Track Of Blog Income And Expenses And Why It’s Important
Discover Investment Platforms

Popular Posts

  • 21 Easy Ways To Earn Free Amazon Gift Cards
  • 10 Best Free Tax Filing Services And Software Online
  • 21 Apps That Pay You Real Money Fast
  • 17 TV Apps And Live TV Streaming Services To Watch TV Free
  • 30 Legit Online Jobs That Pay Well
  • 37 Easy Ways To Get Free Gift Cards
  • How To Get Free Stock
  • 40 Easy Ways To Get Free Money Fast
  • 21 Places To Read Free Books Online
  • 24 Legit Online Jobs
  • 17 Best Work From Home Jobs: A List Of Legit Online Jobs That Pay Well

Recent Posts

  • How To Save $100k In 7 Practical Steps
  • How to Save Money When Remodeling A Home
  • How To Hire A Contractor For Your Remodeling Project
  • Remembering 9/11 Years Later: Where Were You On That Fateful Day?
  • TradeStation Review: Commission Free Stock And ETF Trades
  • Firstrade Review: Commission Free Trades on Stocks, Crypto, And Options
  • Cadre Real Estate Investing Review: Commercial Real Estate Investing
  • Best Sites Like Fiverr To Make Money As A Freelancer
  • Axos Self Directed Trading Review: Invest, Trade Stocks For Free
  • 30 Quotes About Easter And Resurrection: He Is Risen!

Disclaimer

The information contained in BibleMoneyMatters.com is for general information or entertainment purposes only and does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation.

In accordance with FTC guidelines, we state that we have a financial relationship with some of the companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.

Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.

Amazon and the Amazon logo are trademarks of Amazon.com, Inc. or its affiliates.

We respect your privacy: Privacy Policy.

Thanks for visiting!

Bible Money Matters - Seen On These Sites and more..
Bible Money Matters is a personal finance, entrepreneurship and investing community. Give more, save more and live more.

Copyright © 2023 · Bible Money Matters | Sitemap | Advertise | Privacy Policy