It's summertime again. (We may as well call it summer with temperatures soaring into 3 digits in early June this year.) And when it gets hot, what do the kids usually want? A swimming pool.
I've resisted the requests for a pool up till now because I know the chores that come along with having a pool will fall to - you guessed it - me!
But, this year my 15 year old daughter swore she would keep it clean, covered, chlorinated, pumped, and use it faithfully all summer long.
And, it would save me the money that I would normally give her to go to the local pool, she says. She knows that saving me money is a big plus when she is trying to talk me into something.
So, I gave in. I bought a 10 foot pool, and that's when the fun ended.
The things to keep in mind when buying a pool - besides money of course - are the chores that come along with maintaining a pool. But, let's talk about money first.
First, filling a pool of any size (other than a kiddy pool) requires a lot of water. This is not something that usually occurs to you when you are looking at pool sizes.
Usually you just consider the "fun factor" of how deep it will be. But, believe me, 1000 gallons (or more) of water will not be cheap. So, the pool must be kept clean, treated, and covered to keep from having to dump and refill it.
Second, there are chemicals, chlorine tablets, filters, ph test kits, and algaecides that are needed to keep the pool clean. These things aren't cheap.
Third, leaf/debris nets, foot rinse/bath, towels, and of course new swim suits will be needed as well.
Now, onto the maintenance issues. The pool (if it has a pump) must be located within 10 feet of a GFCI receptacle. That's going to make it difficult to place the pool far enough away from the house to keep the noise outside.
The second and most difficult issue with the maintenance of the pool is finding a completely level area in your yard to set the pool up. Eye-balling it wont work.
I dumped and moved the pool 3 times trying to find a level spot. I've come to the conclusion that there are no completely level areas in my yard.
That means that if the pool has soft walls (not rigid) like mine does, you will never be able to fill it up completely. If the ground has a slope to it, the pool will collapse once it is filled about halfway.
I ended up having to brace one side of the pool against (8) 18 gallon totes that I keep gardening amendments in. My teenager is not happy with how it looks.
So, she has the pool she has been requesting for 2 years.
She has used it 4 times.
It is now full of leaves and other debris. She did cover the pool the last time she used it, but it has sunken to the bottom since it rained last week.
And, she asked me for money to go to the local pool already.
My opinion? Save your money for a yard swing, or table and chairs. That way, you save yourself a lot of extra work and money over the summer - and these items might actually be used.
Showing posts with label Teenagers. Show all posts
Showing posts with label Teenagers. Show all posts
Saturday, June 14, 2008
Monday, February 05, 2007
Cranium Board Game - Frugal Fun
We spent part of our Entertainment budget this month on a board game called Cranium. Although this game was one of the higher priced games in the store ($18.22), it was a good investment in our Entertainment needs.
Compared to the little value we would have gotten had we spent that money on a movie, a fast food run, or an hour of bowling - this game will give us months, if not years, of fun.
Cranium offers something for everyone. Depending on where you land on the board, you may have to draw with your eyes closed, shape clay into a recognizable form, act out a charades word, unscramble a group of letters, or answer a trivia question.
This game is fun because there is always something different to do. You aren't locked into just trivia (don't you hate it when you can't answer 3 or 4 0r 5 questions in a row), or just charades, or just word scrambles.
If you are good at some activities, but not so good at others, you will still have fun with Cranium, because it's just a matter of time till the fun activities come 'round again.
Cranium is set up for teams, but you can play it with singles. There are three people in our family so we just act out the hints for each other. For example, If a player had to guess a song title while a teammate hummed the song, one (or both) of the other players would hum the song.
Having a teammate wasn't really necessary, and helping each other kept us all interested in the game. We laughed at each other's attempts to hum or whistle a song that we could only remember the chorus to.
Cranium has a family edition of the game that is made for families with younger children (8 and up). We bought their regular version for adults and teens, and my 14 year old daughter enjoyed the game.
I recommend Cranium. The value you receive from this board game is much greater than just about anything else you could spend $20 on.
Compared to the little value we would have gotten had we spent that money on a movie, a fast food run, or an hour of bowling - this game will give us months, if not years, of fun.
Cranium offers something for everyone. Depending on where you land on the board, you may have to draw with your eyes closed, shape clay into a recognizable form, act out a charades word, unscramble a group of letters, or answer a trivia question.
This game is fun because there is always something different to do. You aren't locked into just trivia (don't you hate it when you can't answer 3 or 4 0r 5 questions in a row), or just charades, or just word scrambles.
If you are good at some activities, but not so good at others, you will still have fun with Cranium, because it's just a matter of time till the fun activities come 'round again.
Cranium is set up for teams, but you can play it with singles. There are three people in our family so we just act out the hints for each other. For example, If a player had to guess a song title while a teammate hummed the song, one (or both) of the other players would hum the song.
Having a teammate wasn't really necessary, and helping each other kept us all interested in the game. We laughed at each other's attempts to hum or whistle a song that we could only remember the chorus to.
Cranium has a family edition of the game that is made for families with younger children (8 and up). We bought their regular version for adults and teens, and my 14 year old daughter enjoyed the game.
I recommend Cranium. The value you receive from this board game is much greater than just about anything else you could spend $20 on.
Tuesday, January 23, 2007
Buy Another Car or Fix the Old one AGAIN
Since my daughter is turning 14 this weekend, she is eager to put in applications around town. In our area, grocery stores begin hiring at age 14 and she has been counting down the months until she was old enough to apply.
The problem? My car is not running properly. I parked the car while I worked on paying off our credit card debt. Since my kid takes the bus to school and I work from home, the 2nd car wasn't a necessity.
But, she wants to work and I don't want to do anything that interferes with her desire to start making her own way in the world. Additionally, I want her to have a clear understanding of how much work is required to make the money needed to purchase wants like cell phones, high-end clothing, and cars and insurance.
But the delimma of whether to sink more money into a car that I've had in the shop 3 times for the same problem is not an easy one to resolve. If it was a simple issue of so-and-so needs replaced, and it costs $xxx to replace it, I would happily put it in the shop and have it fixed.
With this car the issue isn't that simple. It's what I get for buying a Pontiac Grand Prix, I guess. I've had 3 different mechanics try to fix the car, and although they've all replaced something, that something was not the problem. So, I continue to have the same problem after shelling out hundreds of dollars.
After reading several articles online, I'm thinking I'm going to put old Duchess in the shop again. It still works out far cheaper to keep trying to fix this car than to go in debt to buy another one. Here are the best of the articles I read, tell me what you think.
Keep Your Old Clunker or Buy a New One MSN Money
Fix Old Car or Buy New One - Dave Ramsey's Advice
The problem? My car is not running properly. I parked the car while I worked on paying off our credit card debt. Since my kid takes the bus to school and I work from home, the 2nd car wasn't a necessity.
But, she wants to work and I don't want to do anything that interferes with her desire to start making her own way in the world. Additionally, I want her to have a clear understanding of how much work is required to make the money needed to purchase wants like cell phones, high-end clothing, and cars and insurance.
But the delimma of whether to sink more money into a car that I've had in the shop 3 times for the same problem is not an easy one to resolve. If it was a simple issue of so-and-so needs replaced, and it costs $xxx to replace it, I would happily put it in the shop and have it fixed.
With this car the issue isn't that simple. It's what I get for buying a Pontiac Grand Prix, I guess. I've had 3 different mechanics try to fix the car, and although they've all replaced something, that something was not the problem. So, I continue to have the same problem after shelling out hundreds of dollars.
After reading several articles online, I'm thinking I'm going to put old Duchess in the shop again. It still works out far cheaper to keep trying to fix this car than to go in debt to buy another one. Here are the best of the articles I read, tell me what you think.
Keep Your Old Clunker or Buy a New One MSN Money
Fix Old Car or Buy New One - Dave Ramsey's Advice
Monday, January 22, 2007
Teen Parties - be Cool and Save Money
My daughter's 14th birthday is this weekend, and we've put our heads together to come up with party ideas that won't break the bank (Mom's wallet).
Not only is this a good opportunity to teach your kid some money management skills, it's also a good way to save some money while still satisfying a teenager's appetite for all things cool.
I've learned some interesting things about the way teenagers think in this process. Did you know that having a pizza delivered is cooler than picking one up, even if you could get more AND better pizza by getting it yourself?
It's true. It doesn't really matter what kind of pizza it is as long as it delivered. Delivery is cool.
Deli snack trays are also cool. But, you can make them yourself and save a chunk of cash. As long as it looks good and offers a variety of bite-sized food with toothpicks stuck into them - it's cool.
Teenagers are slightly concerned with nutrition. So, you can include celery on the snack tray if you fill it with peanut butter. Mostly they want cold cuts - rolled and stuck with a toothpick, cheese (stuck with a toothpick), cucumbers (stuck with a toothpick), carrots (that's going to be hard to stick with a toothpick), and dip or ranch dressing in the center of the tray. I'm thinking toothpicks must be cool.
If yours is a slumber party, renting movies is a cool way to have fun, and a must-have. The movies don't even have to be New Releases. Older teenage classics like The Notebook, Titanic, Grease, Bring it On, and I Know What You Did Last Summer are usually a hit.
Teenagers also like the animated Disney movies like Cars, Ice Age, and Over the Hedge. Check into the 5-for-5 (5 older movies for $5) deals that most movie rental stores have.
Music is another cool must-have at a teen party. If you don't have enough music or need some more recent, popular singles you can download them from Walmart.com for 88 cents a piece. Just click on Music once you get to the Walmart site.
Walmart also has some music downloads for only 48 cents each. Maybe you will get lucky and your teen will find something they like in that category.
Twister is making a comeback. It's one game that most teenagers will still play with their peers. It's cool and cheap too. It's only $14.99 at Amazon.com.
It's not hard to create a cool party and still save some money. Just set a dollar limit for the party, give your teen a pencil and paper with the budget written at the top, and brainstorm until you fill the party with cool and frugal activities that satisfy you both.
Not only is this a good opportunity to teach your kid some money management skills, it's also a good way to save some money while still satisfying a teenager's appetite for all things cool.
I've learned some interesting things about the way teenagers think in this process. Did you know that having a pizza delivered is cooler than picking one up, even if you could get more AND better pizza by getting it yourself?
It's true. It doesn't really matter what kind of pizza it is as long as it delivered. Delivery is cool.
Deli snack trays are also cool. But, you can make them yourself and save a chunk of cash. As long as it looks good and offers a variety of bite-sized food with toothpicks stuck into them - it's cool.
Teenagers are slightly concerned with nutrition. So, you can include celery on the snack tray if you fill it with peanut butter. Mostly they want cold cuts - rolled and stuck with a toothpick, cheese (stuck with a toothpick), cucumbers (stuck with a toothpick), carrots (that's going to be hard to stick with a toothpick), and dip or ranch dressing in the center of the tray. I'm thinking toothpicks must be cool.
If yours is a slumber party, renting movies is a cool way to have fun, and a must-have. The movies don't even have to be New Releases. Older teenage classics like The Notebook, Titanic, Grease, Bring it On, and I Know What You Did Last Summer are usually a hit.
Teenagers also like the animated Disney movies like Cars, Ice Age, and Over the Hedge. Check into the 5-for-5 (5 older movies for $5) deals that most movie rental stores have.
Music is another cool must-have at a teen party. If you don't have enough music or need some more recent, popular singles you can download them from Walmart.com for 88 cents a piece. Just click on Music once you get to the Walmart site.
Walmart also has some music downloads for only 48 cents each. Maybe you will get lucky and your teen will find something they like in that category.
Twister is making a comeback. It's one game that most teenagers will still play with their peers. It's cool and cheap too. It's only $14.99 at Amazon.com.
It's not hard to create a cool party and still save some money. Just set a dollar limit for the party, give your teen a pencil and paper with the budget written at the top, and brainstorm until you fill the party with cool and frugal activities that satisfy you both.
Saturday, January 20, 2007
If Your Teen Can't Save - Do it for Her
I highly recommend requiring that your teen save a percentage of all money he or she gets. Once a kid becomes a teenager, there are going to be savings goals. It's a built-in fact of life.
All teenagers are going to be looking forward to something expensive. Whether it's that big end-of-school-year trip, a car, or prom clothes, you can bet something big is on the horizon.
If your teen gets money, he or she should be responsible for, at least, some part of those expenses. This is a prime opportunity to teach them money management skills.
Saving for a goal is a major part of money management. So, don't let the opportunity pass by.
But, saving money can be tough for a teen. If it's hard for adults to save money, imagine how much more difficult it is for someone who has very little experience curtailing that temptation to spend.
So, if you find that some portion of your teen's money is not being saved, you may have to save it for them.
I take 5% - 10% from all money my daughter receives (gift checks, odd jobs, etc.) and transfer it into her ING account, then give her the rest. I even deduct 5% of what I plan to spend on her for birthdays and Christmas and put it in her savings account.
This way she is not tempted to spend it because she never has the money in her hand.
My teenager gets a tremendous feeling of satisfaction from watching her savings grow, even though I'm making her save.
Your teen may balk at a requirement to save at first, but once he or she sees the money growing I don't think you will have any more problems. You might even be surprised by having your teen bring her last bit of change to you and asking you to put it in her savings account. How sweet is that!
All teenagers are going to be looking forward to something expensive. Whether it's that big end-of-school-year trip, a car, or prom clothes, you can bet something big is on the horizon.
If your teen gets money, he or she should be responsible for, at least, some part of those expenses. This is a prime opportunity to teach them money management skills.
Saving for a goal is a major part of money management. So, don't let the opportunity pass by.
But, saving money can be tough for a teen. If it's hard for adults to save money, imagine how much more difficult it is for someone who has very little experience curtailing that temptation to spend.
So, if you find that some portion of your teen's money is not being saved, you may have to save it for them.
I take 5% - 10% from all money my daughter receives (gift checks, odd jobs, etc.) and transfer it into her ING account, then give her the rest. I even deduct 5% of what I plan to spend on her for birthdays and Christmas and put it in her savings account.
This way she is not tempted to spend it because she never has the money in her hand.
My teenager gets a tremendous feeling of satisfaction from watching her savings grow, even though I'm making her save.
Your teen may balk at a requirement to save at first, but once he or she sees the money growing I don't think you will have any more problems. You might even be surprised by having your teen bring her last bit of change to you and asking you to put it in her savings account. How sweet is that!
Thursday, December 21, 2006
Let Your Kids Trade Clothes with Their Friends
Do your kids give their clothes away? My teenage daughter does. This drove me crazy until I realized that new-to-her clothes were appearing in the laundry.
Now, trading clothes with friends might seem like an odd way to get clothing on the cheap, but hey, if my picky, fashion-conscious teenager thinks it's cool, then I'm all for it.
When she first started giving her clothing away I decided it was time to have a talk. I explained to her that I was not in a financial position to buy new clothes to replace the ones she was giving away.
Her argument in favor of the practice was that she didn't like the clothes anymore and she wasn't wearing them anyway, but her friend did like them. So, she wanted to pass them on.
How could I argue with that? If the clothing was just hanging in her closet, it was much better to give them to someone who would get some use out of them.
Completing the trade may not occur with the same friend. But, it usually evens out, because there is always another friend who doesn't like some of her clothes. So, periodically I find new-to-her clothes in the laundry.
Trading is not limited to clothing. My daughter has traded purses, backbacks, shoes, and even jewelry. These things are often traded back again, though, so maybe it's more like borrowing. (Who can follow a teenager's thought processes, anyway?)
I can't say that I am always happy with the trade. If I've spent more than $30 for an item and she gives it away, I feel a frugal pinch in my pocketbook. (When you are Living Poor, spending $30 for one item is a chunk of cash, and it doesn't happen often.) But, as long as my kid has enough clothing to last the season, and she is happy with what she has, I'm not going to complain.
So, I recommend the practice. Let them trade, or borrow clothes from each other. It's a viable way to get new-to-them clothing - on the cheap. And, truth to tell, you probably couldn't stop it if you tried.
Now, trading clothes with friends might seem like an odd way to get clothing on the cheap, but hey, if my picky, fashion-conscious teenager thinks it's cool, then I'm all for it.
When she first started giving her clothing away I decided it was time to have a talk. I explained to her that I was not in a financial position to buy new clothes to replace the ones she was giving away.
Her argument in favor of the practice was that she didn't like the clothes anymore and she wasn't wearing them anyway, but her friend did like them. So, she wanted to pass them on.
How could I argue with that? If the clothing was just hanging in her closet, it was much better to give them to someone who would get some use out of them.
Completing the trade may not occur with the same friend. But, it usually evens out, because there is always another friend who doesn't like some of her clothes. So, periodically I find new-to-her clothes in the laundry.
Trading is not limited to clothing. My daughter has traded purses, backbacks, shoes, and even jewelry. These things are often traded back again, though, so maybe it's more like borrowing. (Who can follow a teenager's thought processes, anyway?)
I can't say that I am always happy with the trade. If I've spent more than $30 for an item and she gives it away, I feel a frugal pinch in my pocketbook. (When you are Living Poor, spending $30 for one item is a chunk of cash, and it doesn't happen often.) But, as long as my kid has enough clothing to last the season, and she is happy with what she has, I'm not going to complain.
So, I recommend the practice. Let them trade, or borrow clothes from each other. It's a viable way to get new-to-them clothing - on the cheap. And, truth to tell, you probably couldn't stop it if you tried.
Tuesday, December 19, 2006
Easy Cash Budget - Envelope System
Some people simply do not like to budget (go figure). It's understandable, though. Budgeting can take quite a bit of time in the beginning, especially if you create a spreadsheet yourself, from scratch.
There is a simpler alternative to saving all of your receipts and keeping track of every dollar spent. It's the Envelope system. With this method of budgeting, everything is done with cash.
Here is how it works. Cash your paycheck and divide it up for each spending category you have. Put the amount needed for each category in an envelope and write the category names on the envelopes. Put all the envelopes in a safe place until money is needed for an expense.
Let's try an example. You get your paycheck for the week and cash it. You know you will need money for rent, gas for the car, groceries, the electric bill, the phone bill, the bill for cable TV, some money towards Jr's school clothes in the summer (school starts in 6 months), money towards insurance for the car (due in 6 months), and something for entertainment.
OK, that's 9 envelopes. Label each envelope and write the amount needed for the month on them. Divide the amount needed for the month by how many paychecks you get that month. For example, if you get paid weekly you will divide the monthly bills by 4.
This cushion should be put into an envelope labeled "Unexpected Expenses." It will be used when the car needs a new tire, or everyone gets sick and you need to buy a zillion dollars worth of vitamin C and cold medicine.
Place the calculated weekly amount into each labeled envelope and put all of the envelopes in a safe place. When you are ready to go food shopping or a bill is due, take the money from that envelope and pay that expense.
Once the envelope is empty, there is no money left for that category of spending. If you find that you run out of money before your needs are met in certain categories, you will need to re-work your budget, or find a way to cut back spending in that category.
The Envelope system works fine for a family with basic budgeting needs, as long as they have the needed discipline to stay out of the other envelopes when one is empty. This method of budgeting removes the need for listing each dollar spent, and offers the ability to see how much money is left in each category by simply opening the envelope.
Just remember, Do not spend the cushion money (Unexpected Expenses) unless a real emergency occurs. (Eating out is NOT an emergency)
There is a simpler alternative to saving all of your receipts and keeping track of every dollar spent. It's the Envelope system. With this method of budgeting, everything is done with cash.
Here is how it works. Cash your paycheck and divide it up for each spending category you have. Put the amount needed for each category in an envelope and write the category names on the envelopes. Put all the envelopes in a safe place until money is needed for an expense.
Let's try an example. You get your paycheck for the week and cash it. You know you will need money for rent, gas for the car, groceries, the electric bill, the phone bill, the bill for cable TV, some money towards Jr's school clothes in the summer (school starts in 6 months), money towards insurance for the car (due in 6 months), and something for entertainment.
OK, that's 9 envelopes. Label each envelope and write the amount needed for the month on them. Divide the amount needed for the month by how many paychecks you get that month. For example, if you get paid weekly you will divide the monthly bills by 4.
- Rent - $350/4 = $87.50
- Gas - $50/4 = $12.50
- Groceries - $250/4 = $62.50
- Electric - $100/4 = $25
- Phone - $35/4 = $8.75
- Cable - $50/4 = $12.50
- School Clothes (needed in 6 months)- $100/6 (months) = $16.67 (a month)/4 = $4.17
- Auto Insurance (due in 6 months) - $350/6 (months) = $58.34 (a month)/4 = $14.59
- Entertainment - $20/4 = $5
This cushion should be put into an envelope labeled "Unexpected Expenses." It will be used when the car needs a new tire, or everyone gets sick and you need to buy a zillion dollars worth of vitamin C and cold medicine.
Place the calculated weekly amount into each labeled envelope and put all of the envelopes in a safe place. When you are ready to go food shopping or a bill is due, take the money from that envelope and pay that expense.
Once the envelope is empty, there is no money left for that category of spending. If you find that you run out of money before your needs are met in certain categories, you will need to re-work your budget, or find a way to cut back spending in that category.
The Envelope system works fine for a family with basic budgeting needs, as long as they have the needed discipline to stay out of the other envelopes when one is empty. This method of budgeting removes the need for listing each dollar spent, and offers the ability to see how much money is left in each category by simply opening the envelope.
Just remember, Do not spend the cushion money (Unexpected Expenses) unless a real emergency occurs. (Eating out is NOT an emergency)
Monday, December 04, 2006
Money Tips for Teens
- Save 5% of All the money you get - Gifts, too.
Saving 5% isn't hard, it's only a nickel out of every dollar. But the earlier you start saving it, the faster it will grow. So, when you need a hunk of cash to buy a car, clothes for the prom, or an expensive trip with your classmates, it will be there for you. - Have a Savings Goal.
Are you saving for a car? The prom? A trip? Whatever your goal is, figure out how much money you will need, and start saving. Having a goal focuses your brain power, and makes it easier to save (It's cool, too. Watch your friend's reaction when you tell them you are saving for a car). - Open a Savings Account.
You can open a savings account online or at a local bank. You will earn a higher interest rate with an online savings account. Either way, you will need to have your parents open the account for you if you are under 18. If you want to be the only one who can access your cash, then save it in your room somewhere. Just make a commitment to save, and don't touch that money until you've reached your savings goal. - Spend your money with a Plan.
Take a minute to write down what you want to buy and how much it costs, before you go to the store. At the top of a piece of paper, write how much money you have. Subtract the cost of what you want to buy. Is there enough left for your 5% Savings (leave 5% at home so you can't spend it)? Do you have enough for the tax? It only takes a minute to write it down, but it keeps you on track once you get to the store. - Go online to find the Best Price.
Always compare prices at different stores to find the best price for what you want to buy. You will be surprised how much you can save just by shopping at a different store. Try Froogle.com or pricegrabber.com for online shopping, or go to local store web sites like Walmart.com or Sears.com to find local prices. You don't have to buy it online, you are just checking prices. - Think of what you buy as an Investment.
An investment is something you spend money on that you expect to last for a while. So, ask yourself how long this thing (that you are buying) is going to last. If it isn't going to last very long, like a pizza, don't spend much money for it. If it will give you value for a long time, like a CD player, then it is a good investment and spending more money on it is a good idea. - Don't Borrow Money without a Plan to Pay it back.
Avoiding debt (owing someone money) is best, but if you do borrow have a plan to pay it back. Write it out on paper (writing always helps to focus your brain to work on your plan, even when you aren't consciously thinking about it). Can you work it off? Can you earn extra money recycling aluminum, cutting grass, doing laundry for someone? If you can't come up with a plan, don't borrow money. - Save all your Receipts.
You just never know when something you bought is going to break, stop working, or just not work right. If you have the receipt, it's easy to take it back (most stores will give you your money back on defective merchandise for up to 30 days after you buy it). And, receipts are your record of what you spent your money on. With a record of your spending habits, you can go back and see if you are making good investments or bad ones.
Friday, December 01, 2006
#1 Money Tip for Teens
You've got your own money now. How cool is that! So, what are you gonna do with it? Do you spend it all on that 6 CD changer stereo that is "off the chain," or on the newest, slimmest flip cell phone, so you can impress your friends?
Between the two, the stereo is the best investment. Why? Because a cell phone is a financial commitment; that means that you have to keep paying for it. The stereo is a done deal. It's paid for and you can use it over and over again without spending any more money.
You want to avoid financial commitments if you can. Once you are committed, like when you sign a contract for a cell phone plan, you have to keep paying a set amount of money every month.
So, what happens when you don't have any money next month (cause you spent it all on pizza for your friends, and a new CD)? You lose the cell phone service, and the money you spent to get the phone is wasted.
Well sure, you still have the phone but you can't call anyone with it, so what's the use? (Those games get boring after you've played them 300 times.)
So, the #1 tip for spending your money is to think of what you buy as an investment.
I know, I know, investment is a boring word. You're probably thinking that "investment" is some old-person word, and you aren't even listening, right? Well, that makes sense. But, bear with me.
Using the word "investment" in this sense just means that you expect what you buy to last for some period of time. You wouldn't buy a stereo or CD player and only expect it to last long enough to play one CD, or one song from the radio, would you? Of course not.
So, when you think of that 6 CD changer as an investment, you're just saying that you expect it to entertain you with music for years and years.
The good investments are the ones that you don't have to spend any more money on; they will work even if you don't spend one more penny on them.
An example of a good investment is that CD player you are thinking about buying. You might want to buy new CDs to listen to on the CD player, but you don't have to buy any more CDs for the CD player to work, right?
What about the cell phone? Will it work even if you don't spend any more money on it? Well the games will work, but you can't call anyone with it if you don't pay your bill month after month after month.
See what I mean? A cell phone is a bad investment, because it just keeps costing you money. And if you don't have the money one month, they turn off your service, and the phone is useless.
So, you decide. Do you want a good investment (something that lasts without spending more on it), or a bad investment (something that keeps holding its hand out for mo' money and mo' money and mo' money)?
Between the two, the stereo is the best investment. Why? Because a cell phone is a financial commitment; that means that you have to keep paying for it. The stereo is a done deal. It's paid for and you can use it over and over again without spending any more money.
You want to avoid financial commitments if you can. Once you are committed, like when you sign a contract for a cell phone plan, you have to keep paying a set amount of money every month.
So, what happens when you don't have any money next month (cause you spent it all on pizza for your friends, and a new CD)? You lose the cell phone service, and the money you spent to get the phone is wasted.
Well sure, you still have the phone but you can't call anyone with it, so what's the use? (Those games get boring after you've played them 300 times.)
So, the #1 tip for spending your money is to think of what you buy as an investment.
I know, I know, investment is a boring word. You're probably thinking that "investment" is some old-person word, and you aren't even listening, right? Well, that makes sense. But, bear with me.
Using the word "investment" in this sense just means that you expect what you buy to last for some period of time. You wouldn't buy a stereo or CD player and only expect it to last long enough to play one CD, or one song from the radio, would you? Of course not.
So, when you think of that 6 CD changer as an investment, you're just saying that you expect it to entertain you with music for years and years.
The good investments are the ones that you don't have to spend any more money on; they will work even if you don't spend one more penny on them.
An example of a good investment is that CD player you are thinking about buying. You might want to buy new CDs to listen to on the CD player, but you don't have to buy any more CDs for the CD player to work, right?
What about the cell phone? Will it work even if you don't spend any more money on it? Well the games will work, but you can't call anyone with it if you don't pay your bill month after month after month.
See what I mean? A cell phone is a bad investment, because it just keeps costing you money. And if you don't have the money one month, they turn off your service, and the phone is useless.
So, you decide. Do you want a good investment (something that lasts without spending more on it), or a bad investment (something that keeps holding its hand out for mo' money and mo' money and mo' money)?
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