This is a guest post by Jeremias. He introduced himself.

My knowledge regarding stocks or investments I would say is quite on the average compared to people on the same age as I am, 15 years old. My parents introduced me to mutual funds when I was seven years old and I place money there on a yearly basis. I have quite saved a large amount of money ( for me), but I intend to use it at my senior years.

For me it is impressive, and I am happy, to meet a young man like Jeremias who is interested in saving and investing cash in such young age. I believe, if he continues educating himself in investing, he will be able to retire early. Very early.

 
 

Money, such a small thing made up of different natural materials that is so much valued in this world. People use it to get their needs and wants in life. It is so much important that without it, living in this world would be so much difficult. So how do they earn money? They work and save up their money. Furthermore, many people have knowledge on investments, which is so much helpful in the development of one’s finances.

What are the tricks multimillionaires do to acquire such big amounts of money? They actually do not have any tricks. What they have are discipline, patience, and strategy. Multimillionaires are good strategists of money. This idea often applies to investments, but we are not going to discuss it here.  In this article, we are going to talk about personal finance in terms of saving.

Discipline is the most essential idea one must understand to have more money. A person must know how to determine what are important and not and what are efficient and not. When a person learns how to determine things, he/she will be able to distinguish his/her needs and wants. It is the “wants” of a person that causes his/her own savings to diminish easily. With this reality, the only solution to have and sustain a great amount of money is to control self-desires. I am not saying that the person must no longer buy the things he/she wants in life, rather, purchase in moderation. Another thing, as mentioned earlier, the efficiency of the product is important. By efficiency, we mean that the product is good, at the same time it is not expensive. The consumer must be good in decision making for his/her money not to be put in waste by low quality products or over priced products.

One strategy I have been doing since I was a kid in order to save money was not to buy lots of food in the canteen. First, foods, once consumed, can no longer be used in the future. In addition, the foods people often want are those that taste good but have bad effects on the health of a person in long terms. Another tip in saving money is to stick to your goal. Everyone has his/her own reason for saving money, may it be to purchase an expensive thing or in preparation for his/her own life in the future. Whenever you want to use the money you saved up for your goal, always weigh things. Think of what is more important at that very moment, to purchase the thing you saw or to save your money for the goal you have set yourself. But, the best method to save up money is by having a piggy bank. With it, you are forced not to use the money you placed. Furthermore, it would be better if you place money on a regular basis even at any amount.

Patience is another essential idea in personal finance. Earning money and saving it to increase in amount does not take overnight. It takes a lot of patience to achieve the goal of attaining a great amount of money. One must learn how to wait and make proper timings. One good example would be placing money into a piggy bank on a regular basis to save up on a computer. Then a sale occurs and the computer you want is on sale by a large discount and you have saved more than its sale price. This is the best time to purchase the item you wish on the price you can afford.

Those are some simple ways on how to save up money for a goal. However, remember to use this goal only as a motivation to become better and not for the purpose of desperation of things. Let us remember that money and things are not the most important things we can acquire in life. Love, Friendship, and knowledge are more important in life than having lots of money. Money is only an incentive of the three. One ideology one must remember is a line in the Indian movie, The Three Idiots. It says, “Chase excellence and success will follow.”