As future successful career women, it is beneficial to implement good habits now to prepare us for the long run. Managing money may be the most difficult, but necessary, aspect in creating security. Since “no time is better than the present,” here are five tips to help you budget your finances this year:
1. Prioritize
Before shopping for your wants, think about your needs. Make sure you have enough money set aside for gas, groceries and whatever else needs to be taken care of within the upcoming weeks. After paying for the necessities, put a portion of aside for possible emergencies, impromptu lunch dates or the dress you fall in love with at first sight. Chances are many things will catch your eye, whether you are at the mall or at Target. But before making the purchase, consider what you already have and how often you will actually use it. Do you really need more Burt’s Bees products or another pair of booties?
2. Plan Ahead
Planning ahead will help you estimate how much money you will spend and prevent you from paying overdraft fees. Keeping your available balance in the back of your mind when thinking about upcoming purchases and social outings so you can make sure you have enough for any unforeseen opportunities. Nothing is worse than believing you have extra money just to find out lunch at Panera is out of your budget.
3. Track Expenditures
Keeping track of where your money goes puts everything into perspective. Some banks offer breakdowns of your expenditures through their online and mobile banking systems. If your banks do not offer this feature or even if it does, there are several personal finance apps that can help you track your spending as well. Mint, Acorn, and Goodbudget are just a few apps that can help you with your budget success. Of course, there is always the option of physically writing down each of your transactions, but it is 2016 after all!
4. Set Limits
After you have an idea of how much money you spend in particular categories, review approximately how many of those transactions were unnecessary. Spending the occasional $5, $10, or $20 on something that isn’t quite worth it can definitely add up so it is important to set limits for how much you spend on clothing, social outings and food. Though gas and food are necessities, try to find the better deals and limit the amount of times you eat out and travel considerable distances.
5. Use Your Resources
Even though on-campus dining may not be your first choice, you should try to get the most from your meal plan. Students are often left with countless swipes at the end of the semester, so don’t let your meals and campus-only money go to waste! Another reason to opt for food on campus is because it is already provided by your meal plan or is free (take advantage of student org. events!) – better than using your “real” money elsewhere.