This question is the most mixed up question I have yet to come across. Money that you save does not waste away it wastes away when you spend it. The only way it will lose value is if you stash it under your bed. In this case, its value will decline due to inflation, but that’s what banks are for. Even with inflation, money spent disappears a lot faster.
It seems like these days, nobody saves money anymore. The more money people make the more money they spend. This is just a recipe for disaster. If you read the book the millionaire next door, you will find out that most of the millionaires in the U.S. do not live this way.
If you want wealth, you must save and in order to save, you must live below your means. Many people that have high incomes and big beautiful expensive houses and cars to match, will probably say wealth is measured by what you own, your assets. This is not entirely true. If you have a million dollar home that you own flat out, you are probably wealthy because you could sell it and you would have a million dollars, but besides houses, most possessions lose value.
According to the dictionary, the economic definition of wealth is all things that have a monetary or exchange value. If you want to be wealthy, you have to save and invest. But even if you don’t want to be wealthy or rich, you still need to save money.
There are so many different things you can spend money on including fun activities, food, gas, and unexpected events. These unexpected events are a great reason to save money. Let’s say you have a car and a job and you spend all your paychecks week after week. What happens if your car breaks down and it can’t be fixed? Where are you going to get the money to get a new one? You have nothing saved, so that’s not going to work.
What about that first car you had? If you never saved anything, how could you afford to buy it in the first place? Yes, I know, a lot of people have very generous parents who buy them everything, but that’s not going to work the rest of your life. You could be stuck in a similar situation 20 years from now, but instead of your car you’re getting kicked out of your house. This is the reason why you should learn now and not from your own mistakes later when it affects your life.
Saving money is very important. It will get you out of nasty situations, allow you to buy what’s important to you such as a house. When you buy a house, you do need some money for a down payment, and don’t expect the bank to give it to you.
Also, by saving money, you can make it work for you by investing. Savings and investments are very important if you ever want to retire comfortably and not at 85 years old. Don’t let money consume you, and think of your future, If not for yourself, for your family. What you do now will decide how you live in the future.
So do you really want to make money fast? The best way for teens to make money fast is to save!