While none of us wants to depend on money in our day-to-day lives, most of us still do. There's never enough of it. What would be some good financial suggestions to keep in mind when thinking about money?

Need and Want

In order to save money, keep an eye on your spending. Many things that we buy thinking that we need them we actually don't. We want those things, we don't need them. You might say that your phone broke so you need to buy a new one, an $800 Samsung Galaxy S whatever, but in reality, most of us don't need it. We're good enough with a phone worth just 100 or 200 bucks. I'm well aware you can now state like 10 different reasons why you need an expensive phone - better camera, more storage, a millisecond quicker - but let's be honest now, what would happen if you got slightly worse camera (or why not, no camera at all), less storage where you can only install so many apps (most of which you still won't need)....nothing, nothing whatsoever. You don't need that phone, you want it. If you can afford it, sure, get it. But if your intention is to save, or grow your money, buying the expensive phone might be the worst decision you can make. And this all applies to everything, not just phones.

Not having money to save

If you're living from month to month, always being sort of broke, we can all say that we don't have money to save, but it's not exactly true. What if you just spared $10 every month. Yes, it's annoying little and doesn't sound like worth a thing. But it's better to save something than nothing. And you CAN save $10 if you really wanted to.


And even that $10, if you manage to put it into an account that pays you interest, compound interest will start generating you some more money, and then some more money, and then some more. Confused? What is compounding?

Have an emergency fund

While saving in general is always a good idea, it's also a good idea to have a separate emergency fund which would last you anywhere between 3-12 months. Just to always know you get by should something happen.

Don't take loans

I know that's easier said than done, but that's a good suggestion. Even if you have a credit card with not so big limit but it's always empty, you end up paying $20 or more a month just for interest. Instead, you could spend some time paying back the dept and the next year you could save the $240 you now don't have to pay for interest.