Prioritizing your financial life can be just as important has having big dreams
We talk a lot about discovering our financial goals but not as much about looking at the bigger picture and prioritizing our financial lives. Teaching your kids about what comes first with finances can be just as important as how to get there.
Today’s essay is by Joey Mayen, a student at San Jose State University in Advertising. He shares how his parents taught him to look at the big picture and prioritize his financial life.
Check out Joey’s story and please share on social media. The most-shared essay on how parents can teach their kids about money will win our $500 personal finance scholarship, announced August 31st!
Looking to prioritize your financial goals by getting back on track? Learn how to deal with bad credit and how a consolidation loan can put you back on the way to your goals.
A Lifetime of Money Lessons Starts Early
Since I was a young boy, my parents have gradually taught me everything I needed to know as it relates to my personal finances. Whether it comes to making and spending money, or simply saving and budgeting, I am glad to have been taught at least the basic foundation of personal financing.
As a result, I feel much more prepared to manage my personal finances as I transition my way into college, as well as for my adult life afterwards. I am also glad to know this information at such a young age so I will ultimately be able to retire comfortably, or even early.
Looking at the Big Picture in Personal Finance
My parents have always emphasized to me the importance of considering the big picture when it comes to personal finances. While I will be spending money on a day to day basis on things like food, the most important investments to consider will be happening many years down the road.
When it comes to buying a house, a car, or any other investment, my parents have always stressed to me the importance of saving towards these things as early as possible. If I open a savings account the day I turn 18, and I save either a percentage, or a set amount of my income from work, by the time I need to buy a place of my own, or a car (or whatever else it may be) I will be fully able to support myself.
My parents also told me to ensure that I never spend any of my savings on anything out of the original plan. This made me realize that it is a difficult balance to juggle between saving money for a house, car, or retirement, and budgeting my short-term, day to day spending such as dues, bills, food or clothes.
Do you know how to rank your debt? Learn how to pay off debt and save thousands in interest!
Saving for Bigger Investments in Life
As I transition into college, I will be working at least part-time to start saving for these types of investments. The reason I'm going to college in the first place is to give myself a better chance to receive as high an income as possible when I start a career instead of simply “working”. In this way his way, I am making at least a little bit of money working, while simultaneously preparing for a larger, more important career after my college education is complete.
More simply, my parents taught me that the best way to support myself (whether it comes to a future house, car and retirement, or just the day to day bills and expenses) is to be very considerate in the way that I budget myself. They taught me to be very strict with myself in the way that I plan (and follow through with) dividing my money amongst day-to-day expenses and future investments according to my current and future income.
By following through with this sort of personal finance, I will be able to support myself (and my eventual, future family) for the rest of my life as safely and efficiently as possible. I am confident that my parents have given me a solid, base understanding of personal financing as it pertains to my adult life.
I want to thank Joey for his essay on how he prioritizes his personal finance goals. Be sure to support Joey by sharing the article through social media and check in August for the winner of the personal finance scholarship.
About the Author
Joseph Hogue is a financial expert and investment analyst. After serving in the Marine Corps, he started his career investing in real estate before becoming an investment analyst for some of the largest private investors. He's appeared on Bloomberg and on CNBC as an investment expert and has published ten books in personal finance. Now he helps investors reach their financial goals and invest in the stock market with some of the same advice he used when working for the rich.