5 Pieces Of Money Advice I'd Give to 18 Year Old Me

At 18, I wasn’t very money savvy. I was juggling living out of home and car expenses whilst trying to save dosh for travelling and constantly having my card be declined whilst buying a coffee…

If I had the money knowledge that I have now, I probably could have afforded to s(p)end it a little bit more. so I bring to you some money advice I’d give to my naïve past self!

1. Change your spending habits

When I was 18, I’d spent, on average, $50 each week eating out. That equates to a whopping $2600 a year! Not to mention, I became an avid online shopper, spent a lot of dosh on transport and nights out were a constant big blow finically…

Some simple changes made a massive difference. I literally saved a few thousand dollars by being a little more money savvy.

I became obsessed with cooking my own meals and meal prepping. Keep in mind that I was working two jobs and studying full time at uni so if I can find the time, you can too! I allotted a smaller number to online shopping and learnt to love thrift shopping instead. I stopped driving everywhere and instead took the bus or walked if I could, saving $$$ on petrol and parking.

2. Think ahead

I’d always ask myself: What will I owe this month? Then I’d plan ahead of time with a budget.

Say I worked out that I’d need enough dosh for four weeks rent, utility bills, internet, petrol, grocery shopping about three-four times and some leeway money for fun and entertainment. Oh, and my fav festival would be releasing tickets. Can I afford this all?

Then I’d work out how much this would all roughly cost, how much money I have now and how much money I’d roughly earn during the month. Bugger, I can’t afford the festival… But hey! Since I planned ahead, I could ask my job to give me a few extra shifts and try decrease my fun and entertainment spending.

3. Have an emergency fund

Sometimes, mother nature really likes to rip the carpet from under you. Your laptop might cark it, you might not be able to afford your car registration, your bank account may be sitting in the negative digits…

I’ve been in this predicament far more than I’d care to admit, but if I’d had an emergency fund, my stress would have been relieved.

I started transferring $100 into an emergency account here and there. I also made interest from it sitting around until I desperately needed it again.

4. Smash your debts

Having $5000 saved up for a holiday is swell until you realise you haven’t gotten around to paying off your debts. I always forgot about my car loan that was rising in interest by the second!

Where possible, smash these out first so you can focus more effectively on saving. No one likes to have debt constantly at the back of their mind, so make that a priority.

5. Have some goals

Do you want enough dosh to buy you a car, to move out of home or to travel with?

Having goals became a perfect way to manipulate myself to be a better saver. Yes! Sometimes I really wanted to go out for dinner or buy those expensive shoes. But if I reminded myself “NO! This money could go towards travelling in Morocco!”, I’d always be able to stop myself.

Make your goals your phone lock screen. Print pictures of them and stick them on your roof so when you wake up, they’re the first thing you see. Brainwash yourself to save for them!

I figured out at 18, being money smart not only meant having enough money to pay what needs to be paid, like rent, bills and groceries, but also having enough money to treat myself and send it! Being a little bit savvier meant I could buy that car or travel to Spain or go to that festival!

If you’re looking to become money smart, suss out our FinLit series and 7-minute modules on managing your money!

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.