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money management tips?
What is an effective way to budget money for the future after graduation so that you can still have money to spend for yourself rather than on bills or rent?
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Rebecca’s Answer
Thank you for your question. Many students have similar question. Firstly, you may need to distinguish what you need and what you want.
What you need is something is vital to you, e.g. school fee, transport expense to school, meals, etc.
What you want is something nice to have, e.g. Jewelry, a car, etc.
Below are my suggestions :
1. Count how much you need every month
2. Divide your income into 3 parts: 1. spend on what you need every month 2. Saving 3. Spend on something you want
3. You can keep the Savings into a bank account or on some low risk investment
4. Think carefully on the items that you really want before spending monies on it
Hope this helps! Good Luck!
What you need is something is vital to you, e.g. school fee, transport expense to school, meals, etc.
What you want is something nice to have, e.g. Jewelry, a car, etc.
Below are my suggestions :
1. Count how much you need every month
2. Divide your income into 3 parts: 1. spend on what you need every month 2. Saving 3. Spend on something you want
3. You can keep the Savings into a bank account or on some low risk investment
4. Think carefully on the items that you really want before spending monies on it
Hope this helps! Good Luck!
Updated
TARA NADIA’s Answer
Hello Maddy,
This is such a great question and should be talked about a lot more. You should never be afraid to talk about money because it's something we have to use almost every day of our lives. Dave Ramsey has a podcast and he has some great money management education. He teaches people about budgeting, saving, investing and paying off debt. Others names are Robert Kiyosaki (he has a board game called cashflow for children and adults...great for game night with friends), Lori Langemeier (who learned form Robert Kiyosaki), of course Suze Orman. The biggest difference between Dave Ramsey and the others are Dave Ramsey does not like credit cards because they can get you into a ton of trouble and bondage if you don't use them the right way. It depends on what is important to you.
Making a budget should be your first priority in my opinion. I recently opened a bank about with Ally Bank and they have a feature called Spending Buckets. Essentially you're able to list all your bills and expenses for the month and this feature automatically distributes your money to each spending bucket, (for example rent, electric, gas, groceries, gas), or you have the option to distribute the money to the buckets yourself. A budget is just telling your money where to go each month. So as a single person you may allow yourself $250.00/ month for food (it will be different for everyone). So you put that money in your food bucket and if you choose to use your debit card attached to that account it will draw from that particular bucket. Other banks may have something similar, banks have gotten very creative with apps lately.
Also some banks will give you $250.00 that is deposited in your account if you open a checking account and set up direct deposit and have your check direct deposited in that account in the first 30 days. I know Chase does it and Ally did too.
Even if you want to make your own budget on paper that would work too. I would encourage you to get on Pinterest or Youtube and just look up budgeting. There are different ways of approaching it and you can find what works for you! There is a lot of education out there you and you don't have to search very far.
I hope this helps and I wish you all the best!
This is such a great question and should be talked about a lot more. You should never be afraid to talk about money because it's something we have to use almost every day of our lives. Dave Ramsey has a podcast and he has some great money management education. He teaches people about budgeting, saving, investing and paying off debt. Others names are Robert Kiyosaki (he has a board game called cashflow for children and adults...great for game night with friends), Lori Langemeier (who learned form Robert Kiyosaki), of course Suze Orman. The biggest difference between Dave Ramsey and the others are Dave Ramsey does not like credit cards because they can get you into a ton of trouble and bondage if you don't use them the right way. It depends on what is important to you.
Making a budget should be your first priority in my opinion. I recently opened a bank about with Ally Bank and they have a feature called Spending Buckets. Essentially you're able to list all your bills and expenses for the month and this feature automatically distributes your money to each spending bucket, (for example rent, electric, gas, groceries, gas), or you have the option to distribute the money to the buckets yourself. A budget is just telling your money where to go each month. So as a single person you may allow yourself $250.00/ month for food (it will be different for everyone). So you put that money in your food bucket and if you choose to use your debit card attached to that account it will draw from that particular bucket. Other banks may have something similar, banks have gotten very creative with apps lately.
Also some banks will give you $250.00 that is deposited in your account if you open a checking account and set up direct deposit and have your check direct deposited in that account in the first 30 days. I know Chase does it and Ally did too.
Even if you want to make your own budget on paper that would work too. I would encourage you to get on Pinterest or Youtube and just look up budgeting. There are different ways of approaching it and you can find what works for you! There is a lot of education out there you and you don't have to search very far.
I hope this helps and I wish you all the best!