If you avoid checking your bank account after a day of spending, this one’s for you. As a college student or young professional, it might be hard to think about money, especially if you’re living from paycheck to paycheck. However, it’s best to try to end bad financial habits as early as possible. Here are four simple (and almost painless) things that you can do right now to get your money right:
1. Begin to track your spending
Do you know how much money you spend on clothes, food or entertainment each month? You’d be surprised to know where you’re wasting your money. You can start tracking your spending manually or by finding an app that does it for you. If you prefer the latter, get started here.
Pro-tip: Every month you should work on reducing a different place where you overspend.
2. Make a budget
Now that you know what you’re spending and on what, you should make a budget. Budgets are about planning how you spend your money so that you don’t overspend or leave yourself without enough funds to pay bills. Some really great financial management apps will help you create a budget.
Pro-tip: Create a personal minimum that you’d like to have in your checking and or savings account at all times, if feasible.
3. Plan for financial stability
In your budget, you can work out how much you’d like to save each month. If you need help doing this, you can pay a visit to your bank and talk with a representative about creating a savings plan. You can use your financial management app to plan goals as well.
Pro-tip: Trick yourself into saving by direct-depositing a percentage of your paycheck into a savings account that isn’t immediately accessible.
4. Pick up a side hustle
The best way to make sure that your finances will always be in order is to have multiple streams of income. You can create own your side hustle by freelancing, or you can opt for picking up a part-time job. Just remember to only invest in what you’re truly able to do.
Pro-tip: If you can find a side hustle where you can make money passively, you’ve hit gold.
Do you have any tips for improving financial health and stability? Share them with us below. If not, try these out and let us know how they work for you!
