As a young adult, it’s possible to run into financial setbacks, frustrations or confusion. More specifically, being a twenty-something is not an easy task itself. You’re learning how to navigate life, gaining insight on where you want to be within your career, continuously searching for new opportunities in new places, and worrying about your finances for, what seems like, every hour of the day. During your transition into adulthood, your financial status becomes more and more important. The amount of money you have can easily affect your short and long-term goals. Without an organized financial plan in place, budgeting your income will be nearly impossible and it can be too easy to spend way more than necessary. Stop worrying about how much money you have, and instead have better control over your money. Read these tips to begin your journey towards financial success.
Set financial goals
When you’re in your twenties, it is vital to set daily goals, especially financial goals. By determining your saving ambitions and spending limits, you’re more likely to destroy your bad habits and conquer great ones. If you want to save enough to move to a new place or invest in a luxury purchase like a vacation or a new car, having great knowledge on your short and long-term financial goals will give you the confidence to do so.
Track your spending daily
Even though this could be a timely task, tracking your daily spending is an amazing way to learn how to organize your payments and their deadlines. By making a budgeting spreadsheet in Google Sheets, you’ll have a reference to look at if you’re ever confused about where your money is going. It’s an easy process and will layout each monthly expense in an organized chart that is easy to log and simple to read. If you are someone who is constantly on-the-go, consider downloading a money management app on your smartphone.
Save as much as you can
Saving money is a difficult thing to do– especially if you’re a frequent shopper, constantly eating out, spending too much on monthly subscriptions, or if you have an unclear definition of your needs and wants. Debt can add up quickly if you’re not careful, so it is important to place a designated amount of money into a savings account. The more you save, the less susceptible you’ll be to a financial disaster. When you have an unexpected bill to pay, you’ll immediately have a backup plan and some confidence while making the payment.
Opening a savings account is extremely important and necessary if you want higher financial stability later in life. When you receive your paycheck, always pay yourself before anything else. Once you open a savings account, you can place an associated deadline along with it to enable yourself from making a withdrawal for a certain amount of time. This account will come in handy down the road when you are looking to make a larger investment, such as a house or a vacation and you’ll have enough money to do so without going broke.
Get a handle on your student debt
If you’re a college graduate, you’re either preparing or continuing to pay your student loans. These payments are outrageously costly for some, and if you’re in your twenties, these payments can delay or limit certain opportunities that lead you to financial independence. Because they take so much money out of your paycheck, it can be difficult to afford the things you need in life. To help yourself out, consider lowering the student loan payment through a refinancing plan. If you’re a recent graduate, communicate with your loan provider to gain a better insight into your payment plan options. Some loan companies offer an income-based or graduate payment plan, so don’t be afraid to ask questions about these repayment plans as well.
Oh, I know– that café coffee or breakfast smoothie sounds like a fantastic way to begin your day, but when you’re budgeting, those extra dollars you’re spending on food can really add up. In the money management world, purchasing healthy food options at a low price is an essential way to make your paycheck stretch farther. Always think about what you’re going to purchase at the grocery store ahead of time. Beforehand, create a shopping list and plan how much you’re going to eat during the week too. By prepping your meals and buying in bulk, you’re actually saving yourself money. Knowing what you’re going to buy before entering the store can make your total cost less of a shock.
Do you have any other successful financial habits you want to share? Let us know!
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