Budgeting is often on the minds of young adults. You may not be thinking of it as budgeting. It manifests itself as thoughts along the lines of ''where does all of my money go?'' Here are a few tips that could help you make your cash do all of the things that you want it to.
The first step is to get a grasp on where your money is going. It is easy to track your rent payments, utilities, etc, but wrapping your mind around every time you spend five dollars is a little more difficult. Carry a pocket notebook or download an app for your smartphone, then write down every penny you spend for three months in a row. You may be surprised by how much cash you waste on a weekly basis.
While you are tracking your expenses, look at your recurring monthly bills. Many people waste money by paying late fees on their monthly bills. They pay them late because they simply forget the due dates. Get a firm grasp on when every bill is due, pay them on time, and you can save nearly a hundred dollars a month. Sign up for automatic bill pay, use alerts on your smartphone, or download an online tool. Never neglect to comparison shop for gas bills, cable, insurance, or cell service.
After tracking your expenditures and getting a handle on your monthly due dates, it is time to save more money. Look at that expenditure sheet. Are their things that you can easily spot as wasteful? If so, are they things that can be turned into a treat? If you like to eat out every night, why not set a goal then use eating out as the reward for meeting that goal? Do you have magazine subscriptions, but the magazines sit on the table collecting dust? How often do you use your gym membership?
Everyone needs to have money in a savings account. The trick is getting it there. Ideally, you should have enough money in savings to pay all of your bills for six months in case you find yourself unemployed. That sounds like a huge amount, but you can get there. Start my putting a ten dollar bill in savings every paycheck. Use direct deposit so you are not tempted to skip it. Once you are comfortable with that, try this. Keep putting the direct deposit in plus open your wallet every payday before you go to the bank. Deposit half of the cash you still have on hand. You will find that your savings will add up quicker than expected.
Never neglect your retirement. Even if you are barely eighteen, you should participate in your employers retirement plan. Always contribute enough to take full advantage of the employer match.
These tips are all good an well, but it takes a little tangible help to follow them. Try using online tools. Look to reliable sites like mint.com, you need a budget, and envelopes. Each offers great tools for beginners. The one great tool that is often overlooked by young adults is just across town in many cases...your parents. Give them a call or stop by. You may be surprised by how much they had to struggle early one and the great tips they have for you.
About the Author
This article has been provided courtesy of Taylor Brown, a financial expert whose company helps young people get approved for first time car buyer loans. For students with a limited history of credit, he recommends learning more at this informative site.
