MONEY MANAGEMENT

Hey guys! This is my money management page where I share tips and secrets (pshh, they're not secrets) as to how to optimize and save your money efficiently. Thanks for checking it out! Note: I do post the newest ones at the top for returning-readers' convenience (I hope we have returning readers :)), so if you want to read from the start I'm afraid you have to scroll to the bottom. If anybody would like to let me know via the comments section at the bottom of the page which you'd prefer (older at the top or newer), please let me know. Thanks!
~Nargles

003.5 One rule I like to think about before I buy material things is from some book I read, the 2, 2, 2 rule, which can pretty much apply to any decision you make. The rule goes, "How are you going to feel about this is in 2 days. How about 2 months. 2 years?" You'll find that when you ask yourself these questions you'll find most of the time in 2 months, or even years, you won't look back and find it a worthy purchase. Of course, you should never sacrifice buying something you really do want, but try and find the dividing line between stuff you want now, and stuff you'll still want 2 years from now. Remember, the desire to purchase things spur of the moment fashion can feel very demanding and immediate. However, try your very hardest to restrain yourself and maybe wait a few days or weeks. If you still want the same item, and have considered the 2, 2, 2 rule, than maybe you can buy it. Chances are the stuff will always be there by the time you've thought out your purchase. It might be a few tens of dollars every here and there, but it can really add up. 8/11/14

003. How to save some much needed $$! Perhaps you've got loads of money and don't have a care in the world, but like so many people out there, you seem to have fallen short of some dough and have absolutely have no idea where it is going. It's going out the window, and your wallet, is all you know. The most helpful tip I could possibly have for you to help save money is to bring the smallest amount of money you need when you go out. Or no money at all! Okay, as you get older it's always good to have a certain amount of money on you, so maybe some money would be good. Think of it as a reserve, being the amount of money (self determined) that you must carry around should an emergency occur. Also try and practice self restraint when you go out. For example, today I went to Canobie Lake Park, and for the whole day all I did was queue in lines and go on awesome rides. I was so busy all day that I didn't hit the gift shop, which is definitely something I usually do when I go places. My weakness is definitely buying those small stuffed things that I promise I'll love but don't as much a week later. Some tips I have for spur-of-the-moment purchases and how to avoid them are such. If you're with other people, express your want of avoiding buying unneeded random stuff. I've found that if both people determine that they want to limit their spending, it becomes a lot easier. Friends and people you're with can greatly sway your will of not buying that adorable $20 panda from the Museum of Science. Ask yourself if you really want this item you're going to buy, and if you have use for it. 8/11/14

0025. Say you invest $100 in mutual funds, with and interest rate of about 11%. The next year, you've got $111, and after five years, your $100 dollars has almost doubled to about $169. These days $100 is such an insignificant amount of money you probably forgot about it sitting there in the bank and maybe don't remember for another ten years, which by the time will have reached a total sum of $478 or so. But say instead of just letting your $100 sit in the mutual funds for 15 years, you give it some monthly income for it to grow. How about $10? After 5 years you've now got $915 verses your measly $169 without monthly additions. After 15 years it's now $4,607 verses 478. Starting young with the power of compound interest PLUS monthly contributions of small sums (even $5 a month!), you can help save a hefty amount of your retirement fund by the time you'r ready to retire! Or perhaps an overflowing college fund for when your kids are ready to head off to college. Starting off with 500 dollars, and adding 100 dollars a month for 30 years can get you a total of $250, 271. Just imagine the possibilities. Even I'm getting excited. *sheepish smile* I want to be able to travel the world, and I don't want to have to worry about money while I do that. I know that compounding my money will help me very significantly in the future, because I have plenty of time. 08/01/14

002. Compounding. The earlier you start, the better. The one way you can pretty much guarantee you'll end up with far more money than your parents ever dreamed of. If you compound efficiently, which really isn't that hard, in the span of just around 6.5 years, you can double your money. When it comes to compounding, the best time to start is NOW. With as little as $100 or as much as $100,000, it doesn't matter. The beauty of compounding  Compounding: The ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings. In other words, compounding refers to generating earnings from previous earnings. If any of you have passed 8th grade math, just think about your money increasing exponentially at a rate of about 11% each year. The more money you have in your account the more it will increase the next year, and once you reach a significant sum, your money can really start booming. 08/01/14

001. Do not let money rule your life. You should make and earn money to enhance aspects of your life, not simply to own great amounts of it. As great as money can make your life, making money the apple of your eye is quite petty. So save your money, and invest it, but do it the right way and for the right reasons, kids. ;) 08/01/14

Sources:
The Motley Fool Investment Guide for Teens

Compounding Definition

Compounding Calculator: GO FORTH AND CALCULATE HOW MUCH MONEY YOU CAN MAKE, YEAH?!?