The Best Financial Advice You Need to Know

As a 20-something-year-old, I’m always on the lookout for good financial advice. I love to learn as I research information to share with others. I often read and listen to those more experienced to me as well.

Naturally, I sift through a ton of advice and opinions when it comes to money. From everything I’ve read or listened to, the best financial advice I’ve heard so far is this:

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“The 3 best things you can do when you have money is to save it, give it, and spend it on fun.”

 -Dave Ramsey

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This advice is so simple, yet so important when it comes to our financial and mental health.

1) Save Your Money

It’s almost human nature to spend money as soon as you have some. Children love spending money as soon as they get it. The spending bug seems to be built into us. But, the first thing we should do with money is to save it.

This saving can take a number of forms - emergency fund, retirement, or money for a house. If we don’t pay ourselves first, we may find ourselves working for the man well past the typical retirement age.

They say, don't save what is left after spending but spend what is left after saving. If you really want to save money, this method is effective. Because once we start spending the money we have, we don't realize that it has been used up and there is nothing left for our savings. So save before you start spending to be sure.

We must learn to save money, even if it is only a little at first. Work your way up to 10% savings on each paycheck and then increase that to 15% or 20% if you can. Saving is so simple, but so hard to do.

2) Give Your Money Away to Charities or People in Need

The second thing Dave Ramsey said we should do with our money is to give it away. When he says “give it away”, he doesn’t mean give it all away. He means to give a tithe or portion to charity as you see fit.

Should you still give a little money even if you are dirt poor? You should try your very best. Giving and helping others makes you happy. It gives you that warm, fuzzy feeling on the inside. Giving allows you to turn outside of yourself and look for opportunities to help others.

If you save all of your money and give nothing, then you would be a Scrooge. And we all know Scrooge wasn’t a very happy camper, at least not until he decided to give his wealth to the needy. A different kind of happiness entered his heart, a happiness he had never felt before.

You will feel this same happiness as you give to those in need. You can give to your church, give to the homeless, or give to those who have experienced great trials in their lives.

3) Spend Your Money on Something you Enjoy

The third and final point Dave mentioned when it comes to money is to spend it on something you enjoy. Can you imagine what would happen if we saved money for years on end but never actually spent it on something fun for ourselves? It’s not healthy!

We need a break once in a while. We need to treat ourselves. Go get an ice cream cone, take a weekend trip, or go see a new movie.

We will never be the same age again. Don’t sacrifice the special memories that could be made today in favor of saving a few bucks. Remember, all things should be in moderation.

All in all, this simple advice will do much good in our lives if we follow it. We should save our money, give our money, and spend it on something fun for ourselves. This will allows us to achieve our financial goals while also living a well-balanced life.