Saving Formula for students

Who: Students

What: How to be responsible with their money

When: Now, before you’re broke

Why: This is going to be a good tool to use later on in life. Learn early, start early so it pays off.

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Strategies that young people should know:

The Golden Rules that teenagers should follow

1. Saving: When you receive your paycheck balance your money. Take a certain percentage off of every paycheck to set aside for savings. My recommended percentage is 30%. For example, if you make $200 each paycheck and take 30% off you have $60 for savings. It’s not hurting your pockets too much.

2. Fun: Of course everyone is going to want money to play around with so with doing this the rest of the 70% is all yours. You’re still going to have $140 to use and that's more than enough to do what you want. You don’t have bills so it’ll be great for you.

There's two reasons why saving is important because of an emergency, or self need. Let's say something happened to your phone and it's broken you're going to need money to fix it. If you have nothing saved up you're going to have to deal with not having a phone for a week or two until you get paid because you never realized how important it is to save. Or let's say your partners birthday is around the counter and you have nothing to give what do you think will happen? You're never going to hear the end of it that's what's going to happen. It's going to be a whole problem so in order to prevent things like this happening you have to learn how to save. Even if it's last minute at least you're getting something and you won't have to deal with trouble. Those examples were more of an emergency. An example of self-need is, what if you see a nice pair of Jordans that you know will sell out in a few days and you go to the store all ready to pick your size and purchase that sneaker but as soon you reach in for your wallet all you have is coins. Now you have to turn around and walk the path of misery because you were broke. To avoid embarrassment (I'm talking from experience, It wasn't pleasant) stick to this formula so this never happens to you.

$60 might seem very little but it stacks. If you put $60 to save every week by the end of the month you'll have $240 in your savings and if you do the same thing the next month you'll have $480 in totally. Let's say you do it for a full year with the same formula you'll have a total of $2,880 in your savings. Now that is a lot of money just by using this formula. If you start early and keep this formula by the time you hit 25 you'll have an enormous amount of cash. If you start at 17 by your 26th birthday you'll have a total of $25,920 in your savings. That's enough money to pay for college if you plan on going or to just buy whatever you want. Very simple if you save you'll have money if you don't save you're going to be broke which no one wants to be. If you use this formula and be consistent the money you'll have over the years is going to be beautiful. I'm also not including if you receive raises. The more money you make the bigger the cut is which means you get to put more into your savings.

Learning to save is going to be very beneficial as you continue to grow in life. Many big-time businessmen like Grant Cardone, Gary Vaynerchuk and my uncle Ivan Quezada all say saving is important and is something they highly recommend young adults to do. Ivan told me when he was a teenager he actually followed this formula and by the time he was in his mid-twenties he had over $40,000 in his savings account. Doing this helped him own a business and he is now living comfortably. I also interviewed two guys by the name of Krish and Christian if they knew anything about financing. I asked them if they ever thought about saving, and if they knew anything about it and both said they never really cared for it. I find that most teenager don’t know the benefits of starting early and how much money they can have if they would allow themselves to learn about this. I would love for every young adult to acknowledge this and give saving a try not only just to save big cash but this helps you become more responsible in your everyday life. This shows the importance of learning early. You start early, work hard so when you're in your late 30’s your bank account can look like this: