Hello my young (and other) investors!! Today is a good day, and hopefully you all have had some thought and came up with a way to earn or obtain one dollar a day! If so, be proud of yourselves and if not, no worries as it will come to you soon enough. Understand that things take time and may come easier for one individual and harder for another, but as long as you are persistent and willing to work it will all workout. Remember to never compare your success and/or defeats to others as we all have our own “story to write”.
Being mentally ready to build a wealthy future is key, just as much as the funds you work hard for. Which brings us to another key understanding that you need. “Live within your means”, and that basically means if you make $10 and have $10, you can only spend $10. Most people tend to get into a hole called debt by not applying this concept. Will it be hard? Yes Can it be done and still be wealthy, HECK YES!
Now, let’s assume we have money coming it at $1 (whatever your amount may be) a day. That is a monthly income of $30. Perfect! We now need to apply two steps:
10 / 20 / 70 -
This will be our starting point to breakdown your funds. Ten percent (10%) will be your spending fund. Twenty percent (20%) will be considered your emergency fund and the remaining seventy percent will be considered your investing fund. Depending on your situation and position, these rates can differ but we need to start somewhere. Say you were trying to save for something, you can pull some from your investing seventy percent and however, we do not want to go no lower than 40%.
$30 with the 10 / 20 / 70 split
30 x .10 = 3.00 (Spending Fund)
30 x .20 = 6.00 (Emergency Fund)
30 x .70 = 21.00 (Investing Fund)
*** Remember, you can change these percentages around but, don’t drop your investing below 40% and LIVE WITHIN YOUR MEANS! Most 13-17 year old teenagers do not need a lot of daily money.
Spending fund –
This fund is for your daily spending. Some snacks, movies or what not. However, don’t forget to “live within your means”.
Emergency Fund –
This fund will be in case of an emergency. Although we are starting at a young age, there still can be some sort of emergencies that you can experience.
Investing Fund –
These are the funds we will end up putting into the stock market!! That is right, you heard me right. There are ways we for teenagers to invest within the market, so stay with us!
Our next goal -
Now that we have a way to make one dollar a day and know how to split it up for proper spending and saving, we need to worker a little harder. Let’s bump our daily one dollar income to three dollars!! Do not be afraid, you can do it. Self-doubt is the only doubt you need to be concerned with. Others may doubt you and what not, but anything is possible when YOU believe in yourself! Heck, I believe in you and am even here for you!