Whether you are in college or long gone from school, managing money and being financially responsible is a vital skill in life. If you’re young, laying the groundwork for good financial habits will pave the way for a stable life, in terms of finances. Below, you will find some tips to help you begin, or continue, your financial journey the right way.
Never forget that word. Budgeting will become your best friend as you learn to manage your money. At the beginning of every month, make sure to create a game plan. Write down your monthly income sources, as well as your projected expenses. Now, you will be able see how much money you can afford to spend and can easily set a budget. With this monthly system, you will always be cognizant of how much money you have, as you track income and expenses.
2. Want Vs. Need
You are walking down the aisle of a store and spot a cute shirt that you immediately want to buy. However, your mind starts to drift back towards the ten other shirts sitting in your closet. Do you really need this shirt? Whenever you are shopping (clothes, groceries, etc), always ask yourself, “Is this a necessity?”. A lot of the times, the item that you want to buy ends up being something that you can live without, something that is not necessary for you to go through your daily routine. With this want vs. need attitude, you’ll end up saving a lot of money.
3. Buddy Systems
If you don’t trust yourself to properly budget and manage your money, then find someone that will hold you accountable to the goals you set for yourself. Whether that be a parent, friend, roommate, or sibling, having someone who checks in on you periodically and makes sure you are on track, always helps.
4. Cash Vs. Card
When using a credit or debit card to purchase something, you swipe and you are done. You still have your card with you and it feels like you have an endless amount of money at your fingertips. Using cash to purchase items actually helps with managing money. When using cash to buy something, the sense of loss is present, as you hand over the cash and the weight of your wallet decreases. As you experience that loss, you’re less likely to have that desire to buy items you don’t need.
5. Plans with Friends
When hanging out with friends, try not to always make plans or do activities that revolve around money. Stay in and watch a movie with some popcorn! Crack open some board games and start playing! Once in a while, it is okay to go out to dinner or go shopping with friends, but try not to make it a routine thing.
As a teenager who attends boarding school and lives away from home and my parents, managing money has become a prominent part of my life. I know, it is easy to get carried away with money, but with these tips, I have found that being financially stable is all the more easier. I hope these 5 tips for managing your money like a #BossBabe help you with your financial journey!
Hi, I’m Anya.
I’m originally from Chicago, Illinois, but attend a boarding school in Connecticut. I’m passionate about reading, tennis, and politics, absolutely loves anything chocolate, and I have my own Youtube channel dedicated to books and current events!