As a young person, getting on top of your money lets you take control of your life.
Your best friend asked you tobe in her out-of-state wedding?
You got in a fender-bender?
Bummer, but no problem.
And it definitely feels like successful adulting when you might write a rent check without anxiety.
I should know Ive paid off nearly half of my student loans.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help… My situation is average I dont have anyunusual skillsorstrategic movesto help me.
So how do I do it?Budgeting.
Something had to change.
Track Your Spending
For a week, a month, whatever.Track everything.
Become aware of your spending habits.you should probably knowexactlywhere your money is going.
Bonus: You might decrease your spending just by being more attentive.
I didnt want to write down a $1 snack at work, so I didnt buy it.
That was one more dollar I could put towards my loans!
Set Some Financial Goals
Come up with a few short- or longer-term money goals, and write them down.
Maybe you want to put as much money possible each month toward your student loans, like me.
Analyze Your Spending
Go back to your tracked expenses, and examine them.
What did you spend the most money on?
Are you happy with how much you spent?
Be honest with yourself.
Does your spending match your goals?
If not, its OK. Just acknowledge where youre overspending and move forward.
First, enter how much money you have now.
Not what you anticipate having, butwhat you have now.
It can be as detailed or simple as you want.
And dont forget anemergency fund!
(Says the girl who had an unexpected root canal.
Heres a morein-depth guide to creating a budget.
Give Every Dollar a Job
This is a YNAB mantra: verify to budget all of your income.
But the real trick is planning for less common expenditures, like car registration.
Youll eventually use every dollar you have, soplan for it.
Be Vigilant with Your Spending
Record every transaction.
The list you started with was good practice, but now you have to make it a habit.
Making a budgets is relatively easy, but its not a set it and forget it deal.
Check your categories to see how much money you have available before shopping or going out.
Recently, I bought several T-shirts at Target.
Guilt-free impulse buying for the win!
If you go over your budget by a few dollars here and there, its fine.
Pull money from a different category, and learn from it.
I adjust something pretty much every month.
Be Realistic
A budget is not set in stone.
Setting realistic expectations is the secret to successful finances.
If you know youll want to splurge on certain things, dont stress.Instead, build it into your budget.
I set aside enough money to go to two movies every month.
It removes the guilt and makes it easier to stick to my plan.
I dont feel like Im missing out, and Im still putting as much as possible towards my loans.
Being realistic is the only way to make your budget stick.
What Will Your Budget Help You Achieve?
Budgeting issimpler than you think, and it helps you achieve your financial goals much faster.
Realizing Id about halved my student loan debt in less than four years was an amazing feeling!
You probably wont always perfectly stick to your monthly budget, but its OK. Just adjust as needed.
You have the power totake control of your money.
All you have to do now isstart.
Your Turn: Do you set a monthly budget?
How do you manage your money?
Emily Wynn is a young professional passionate about helping her peers figure out their money.
Often, personal finance seem overwhelming, but shes on a mission to show its not.
No Interest Til Almost 2027?
Balance Transfer = Credit Card Cheat Code
