7 answers
Shawn’s Answer
Yes. For a week track every penny you spend. It maybe easier to do this with a debit card, but even if you spend cash track it. The place those in categories. Now look for any areas that you can save money. Maybe instead of going out for lunch every day you go out 2 times a week. Then immediately take that saving and put it towards debt or saving. One of your first savings goals should be to get an immediate emergency savings of $1,000. Most people don't have $400 saved for an emergency so this will really put you in a much better place. I wish you all the best.
Grace’s Answer
I would also make it a point to maintain a steady savings balance. Even if it's a small portion, I always made sure to add part of my paycheck back into my savings first. Especially in college, unexpected expenses pop up (car problems, towing, apartment fees, etc...). There were many times in which I was in an emergency with less than $100 in my checking, so it was essential that I had a savings that I could rely on.
Arjita’s Answer
Establish monetary objectives: Identify your short-term and long-term financial aims. Having specific targets, such as saving for a holiday, eliminating debt, or creating an emergency fund, will encourage you to adhere to your budget.
Develop a budget: Construct a monthly budget based on your income and expenses, which distributes your funds across various categories like housing, transportation, food, utilities, savings, and leisure. Be practical and prioritize essential costs.
Distinguish between necessities and desires: Differentiate between required expenses and optional spending. Concentrate on fulfilling your needs before allocating money for desires. Search for areas where you can reduce expenses or discover less expensive alternatives.
Automate your savings: Arrange for automatic transfers from your checking account to a savings or investment account. This ensures that you consistently save money without the temptation to spend it.
Minimize debt: If you have outstanding debts, devise a strategy to pay them off systematically. Think about paying off high-interest debts first or employing the debt snowball or debt avalanche technique to expedite your progress.
Shop wisely: Compare costs, utilize coupons or discount codes, and capitalize on sales to make your money go further. Additionally, contemplate purchasing generic brands rather than costly name brands for specific items.
Create an emergency fund: Allocate some money each month for unforeseen expenses. Strive to establish an emergency fund that can cover three to six months' worth of living costs.
Evaluate and modify: Regularly assess your budget to gauge your progress and make necessary adjustments. Life situations and financial objectives can shift, so adapt your budget as needed.
Consult a professional if necessary: If you're having difficulty budgeting or managing your finances, consider seeking advice from a financial advisor who can offer tailored guidance based on your circumstances.
Keep in mind that budgeting is about striking a balance between your income and expenses, and it demands discipline and dedication. Be patient with yourself and remain focused on your long-term financial objectives.
Eula’s Answer
Hello Shianna F.,
Yes, plenty of tips.
Rule #1 : Don't spend mindlessly. Control impulses of what you want, versus what needs to be paid.
Rule # 2: Pay in this order: 1) rent - 2) utilities (water and power) - 2) food - 3) school expenses - 4) transportation (car and gas) 5) laundry and clothes. At the very bottom of the list: leisure and past times.
Rule # 3: Save 10% to 15% if you can. You will be needing this for unforeseen events.
Rule # 4: Generate extra money with a skill you have. It can be doing hair, crafts, babysitting, singing, photography or any talent you have.
This is just the start, as you grow it gets more complicated. So the sooner you practice the sooner you will master this part.
Let me know if this helps. OK?
and if you have any more questions, we are all here for you.
Caira’s Answer
Daniel’s Answer
The very first thing I would do is make yourself a monthly budget. There are many good apps/online tools you can find online. Many online tools can help you categorize certain expenses and they usually have graphics that can help you visualize your progress. You can also do it the old fashioned way on Excel.
After you set up a budget the next best thing you can do is sleep on it and really ask yourself if you need the item. I would encourage you to really think through what you will use the item for and for how long. Also, think about the big items in life you need to save for such as a house, possibly kids, retirement, etc. You are never to young to start saving for these big ticket purchases in life.
The last thing I would do is don't compare yourself to others. One of the most dangerous things is comparing yourself to people and thinking if they can have it so should I. Don't fall for that trap of "keeping up with the joneses" because comparing yourself to people and their things is not a good idea. It will only lead to misery and feeling like you are failure.
Hope some of the above provides insight
Vera Trujillo
Vera’s Answer
1-. In terms of personal finance start with your expected income. Keep it real on how much you can really expect to receive on monthly basis.
2-. Then as Eula advised, make a list of your fixed expenses from the most important to the less. (include those lattes or any other recurrent expenses). Credit cards or loans. Consider that you can get sick, need to have the car fixed, replace a home item, etc.
3-. Savings are extremely important for rainy days.
4-. Once you have that completed, review if your budget allows you to make up for your expenses and savings or if you need to take out some of the less important or if you need to make any other higher cutting on your lifestyle.
5-. Credit cards - having one is OK to help you thru rainy days or some of them give you rewards if you use them. They key to it is know how much you can get yourself into debt and do not make a habit of over spending. Missing loan or credit card due payment can make your expense go crazy expensive if you forget dates or miss to pay full due amounts on the expected date given by the bank.
Here are other tips that you might find useful. https://www.studentdebtrelief.us/debt-credit/16-tips-on-how-to-budget-your-money/