You probably don’t want to hear it, but in your late teens and early twenties, you are at the most financially unstable point of your life. You’re still an independent adult, with bills that only you can pay, but you don’t have the income to support yourself yet. However, there are some steps you can take to ensure that you manage your money properly from now on to avoid any future financial crises. Read on to learn how to scrub up your finances in no time!
Change your mindset
I think about how long I’m going to live, how much I have saved up, and how long it’ll take me to reach my goals. My money is a constant reminder of my desires and the uncertainty in life. Money doesn’t buy happiness and there are things that money can’t do for you but it does provide you with security and safety which enables you to feel good about yourself. You deserve a life that is safe with some protection from any bad thing happening to you so get your finances together!
Always pay yourself first
It sounds pretty basic, but one of the easiest ways to become rich is by simply paying yourself first. In other words, make sure you take enough money out of your paycheck each month to put into savings. Next, pay off any credit card debt you have and then start saving for retirements and big-ticket items like a house or car. Finally, if there’s anything left over in your budget at the end of the month – which would be rare – spend it on something fun!
Get a side hustle
Money is not a problem for many people. In fact, many people complain about how much they have, and may never spend it all. The important thing to remember when it comes to money is that we will always need more. A person could be sitting on thousands of dollars and still be barely making ends meet because of expenses like taxes, retirement funds, college tuition for their children, or any number of things that are difficult to foresee. To help you get ahead in the coming year without breaking the bank, here are three ways you can make some extra cash:
1) Start your own blog or website – You don’t need to do anything crazy. Start small with an affiliate website like Amazon or eBay so you can receive commissions off of purchases made by people who clicked through from your site. It’s easy to set up, and if you’re at least somewhat knowledgeable about a topic, chances are there’s someone out there who wants what you know.
2) Use the skills you already have – If there’s something specific that you do really well, why not turn it into a side gig? I know someone who used his expertise as an electrician to start up his own company fixing household appliances after hours. He does this work during evenings and weekends when he’s free. He has made quite a bit of extra money this way!
3) Get creative – Let your imagination run wild! If you can’t think of any ideas, try looking online for something related to what you love to do.
I hope these tips give you some ideas on how to increase your income while being able to continue doing the things that matter most in life.
Save like crazy until you hit the goals
- Make a list of your current monthly expenses.
- Calculate how much you need to save each month to hit that goal.
- Prioritize what goals you’re going to work towards first, which should be anything related to buying property or lowering your monthly expenses by reducing monthly bills and finding extra ways to make money.
- Create an emergency fund with three months’ worth of savings in the bank if possible, but at least $1,000 saved up so you can feel confident if something goes wrong without being completely panicked and without going into debt to find a quick fix for the situation.
Re-prioritize your monthly budget
It’s hard to decide what goes where when you are making a budget. Take some time and make your priorities clear. The big ticket items are things like housing, utilities, gas, and food. They take up the bulk of your paycheck and will leave little room for any other expenses or savings.
Prioritize needs vs. wants.
One of the most important first steps to take when you’re trying to clean up your finances is to prioritize what your needs are and what your wants are. Money isn’t just for shopping–it’s also a means of maintaining a lifestyle that matches your values. It’s easy to spend money on things we want without realizing that this comes at the expense of our needs, which can eventually lead us into serious debt. Learning how to make smart decisions about purchases, balancing your needs and wants, creating an emergency fund, and practicing delayed gratification will help you get back on the right track financially.