Congratulations, you got a job! This means hard work, but there is also a payoff. You open a bank account and pretty soon the money starts flowing in. Before you go on a crazy shopping spree with your newfound wealth, here are a few ways you can carefully budget your money, so you don’t go bankrupt too quickly.
Keep Track of Your Paychecks
Before spending any of your money, you need to know the amount you actually have. If you get physical paychecks, keep them for a while to make sure all the money that’s on those slips goes into your accounts. If your checks come to you online through direct deposit, make sure you’re getting paid for all of the hours you work and the amount is right. It may seem tedious, but making sure you are properly compensated for all the work you do is super important. Mistakes happen, so make sure you catch them early.
Section Your Money into different categories
For those of you that have the financial responsibility of owning your own apartment and buying your own food, make sure you have a big section for those categories. Knowing your fixed expenses will make it easier to keep track of how much money you have to spend on everything else. Don’t forget to include smaller sections for the fun little things like dinner with friends and going to the movies.
Make a Spreadsheet
Get out some graph paper or get on your computer and make an Excel spreadsheet. As I previously stated, break your savings up into different categories that you can visualize on paper or on a screen. You will start to see where all your money is going and how much you need for each category. As a visual learner, this tactic really helped me budget and save some money throughout each semester of college. Even something as simple as color coding each of these categories can make it easier to understand your finances.
Set Some Goals
Is there something you’re working for or something expensive you have your eyes on? If you have some extra cash, put it in a jar or savings fund and make a game out of it. Say you make $20 per day, set aside $2 per day in this fund, and pretty soon you will have enough for that new smartphone or designer bag you always wanted. It may not be as easy as impulse buying, it will be so gratifying when you see your hard work pay off.
Open A RETIREMENT Fund
As soon as I turned 18, my mom came up to me and told me I should open a retirement fund. I was very confused, considering I was in high school and was currently thinking about my next step of going to college, but the more she explained it, the more I started to understand. By opening a retirement account early, you are able to invest a little bit of your savings at a time. Over the years, that money grows with interest so by the time you do retire, you will have a solid foundation for living without working. Talk to your parents or trusted guardians on how to set one up. Chances are, they have on and can help you set one up for yourself!
I hope some of these tips will turn you into a money-saving expert, or at least give you a leg up on how to not go broke. No matter what, life is full of financial lessons, and I know you’re going to conquer them!