One of the biggest misconceptions students may have is that being a college student automatically means you have to be in financial distress. There are simple steps to being able to enjoy your money without feeling financially restricted all the time. There is no better time than right now to think about where you are, where you want to be and how to get there when dealing with your finances. Follow these three easy steps and your financial burdens will be no more.
1. Budgeting for Success
Truth be told, we all hate budgeting. When it comes to figuring out our finances we find ourselves stuck in the middle of the Twilight Zone, without the slightest bit of direction. It’s time to become best friends with our budget and not afraid to face these numbers that control our lives!
Download a budgeting app, it will help you keep track of where your rightfully earned money is going. Many people find “old school” pen and paper to be the most effective form of budgeting. Whatever your method may be, allow budgeting to assist your success. Remember you are destined for greatness and your finances should not be what stops you!
2. Take Action:
Set goals and actually reach them! Whether it is paying off your car or rent, take action fulfill these goals. Start small, set realistic goals that will help you get into the hang of things. Want to save up for a car or finish paying off your loan? Give yourself a time frame. Tell yourself, “In 12 months I’ll have enough money to invest in my new car.” Once you reach your first major goal, you’ll understand how rewarding it is to stay committed to your goals. You’ll find the list of things you wanted to achieve checked off one by one as you stay committed and motivated to get to where you want to be.
Taking the action towards your list of goals will help you better prepare for larger finances that are to come your way throughout your future endeavors. These actions will lead you towards the road to financial confidence!
3. Emergency Fund:
Save! Save! Save! After all the budgeting and goals are in order and taking place, never forget to set aside some of that $$$ for an active savings fund. A simple transfer of 5, 10 or 50 dollars a month can really add up by the end of the year and before you know it, your emergency/savings fund will end up looking like your college tuition or better! Just remember money grows when you don’t touch it. It’s easy to think nothing tragic may ever happen to you and that you would ever need an emergency fund but life happens! Think of your emergency and savings fund not as a farewell but rather an “I’ll see you later.”
Now once you’ve taken all three steps into consideration and have applied them to your daily lives, get ready to feel the financial liberation. You’re one step closer to being exactly where you want to be.
xoxo,
Natty Maldonado