Have you ever thought about how you’re taking care of your financial health and whether you’re taking steps that are in its best interests? Most young people don’t. They think they have plenty of time, and would rather spend money on things that bring short term pleasure. That’s totally normal – nobody is perfect! However, it’s never too early to start taking care of your financial health and getting into good habits for your later years. You don’t have to scrimp, save, and stop buying things that you like, but becoming more mindful and easing yourself into becoming better with your money is pretty much always a good idea. To get you started, here are a few suggestions:
First, you need to have a good idea of where your money is going. If you don’t, then you can hardly use it in a more sensible way. Banks are now giving customers a better idea of how they are spending their money by showing pie charts and graphs. You can also download apps that will allow you to see. You might be shocked to see that you’re spending more money on something than you initially realized! I love using an Excel sheet to track my spending!
Come Up With A Budget
Now it’s time to come up with a budget. You must live below your means if you’re going to stay financially healthy. This doesn’t mean scrimping, saving, and living a low quality of life just to have an extra bit of money in the bank. It means coming up with a smart budget where you split your finances up, and allowing yourself some pocket money to use how you like so you don’t go nuts.
Be Smart With Your Spare Money
When you have spare money, be smart with it. The sooner you start looking at investments, the better. You can find suggestions here, but which will you choose? Make sure you also invest in your self development, as it’s investing in your future. These are definitely ways of spending money that can be considered investing.
Wait Before Purchasing
We’ve all had the uncontrollable urge to buy something at one time or another, only to buy it and realize we didn’t really want or need it. If you can control yourself before buying something, you’ll usually find that within a few weeks the urge wears off!
Build up your credit by paying your bills on time, taking out small loans (sensibly!), and looking at other techniques are creating a healthy credit score. Just don’t be tempted to take out loans you’re unsure about.
Save An Emergency Fund
An emergency fund will cover you for unexpected occurrences and give you peace of mind. Put a portion of your earnings into an emergency fund each month and forget about it.
If you think about it, taking care of your financial health can be considered self care. Your future self will love you for doing these things now, and if you don’t, you’ll wish you had. You don’t have to be perfect, just consistent.
I hope you enjoyed the post and learned something from it! Budgeting while on a college budget is really important.
Thanks so much for reading, as always <3