Thinking about money is stressful no matter how old you are. If you start learning healthy budgeting habits at an early age, you’re more likely to become wiser with money as you age. Budgeting is often not something that can be learned overnight. It does take careful planning, commitment, and self-control. It’s always a good idea to have a certain goal in mind to keep yourself motivated. As a young adult, life can seem overwhelming, especially when it comes to your finances. Just take it one day at a time, and things will get easier.
Keep Track of Your Spending
It can become like second nature to whip out a debit or credit card and pay for something without giving it a second thought. This will eventually catch up to you if you’re not careful. When your paycheck hits the bank, it’s easy to convince yourself you have the money to dine out or buy that expensive purse. If you spend money out of habit, getting control of your finances is all about tracking what you’re actually spending money on. When you start to add up all of your unnecessary purchases made in a week, and then a month, you’ll realize how much you could be saving by eliminating that. Cutting down expenses can be tough at first, but it’s worth it in the end. Try to save money in any way you can, such as with couponing.
Write it All Down
Creating an actual budget is necessary so you can have a good idea of how much money you are bringing in and how much money is being spent. This will also help you see areas in which you can cut down on spending. Your budget should include bills that are the same each month, such as your rent, variable bills such as utilities, your estimated grocery expenses, and anything else you spend money on. You’ll also want to include how much money you make each month, including child support checks and side jobs. You can use your budget to create a plan for each month with how much you’ll earn versus how much you’ll have to spend on bills, to figure out how much you can save.
Put Money in Savings Regularly
Saving money is an important part of life, no matter what age you are. It’s a good idea to save money every paycheck, no matter how big or small that amount is. It’s a good rule to save one-third of your paycheck, but life happens and that’s not always possible. When you put money into savings, you should make the rule to pretend that money is not there and to avoid touching it for any other reason except for true emergencies. If you struggle with an addiction, if you have someone you can trust, you can put them in charge of your savings so you don’t become tempted to spend it, no matter how long Xanax lasts, while your judgment may be impaired.
Focus on Paying Off Debt
Saving money is very important, but it’s also important to pay off your debt while you’re still young. Your debt will impact your credit, which can have a negative impact on your chances of getting a car, buying a house, or getting approved for a personal loan. You can monitor your credit score and find out what debt you have, and make a plan to tackle that.
Finances can be a stressful topic for most people. You can become more confident with planning for your future with some self-control and proper planning.