How to Budget in your 20’s
Budgeting early in your 20’s may seem discouraging, but it’s the key to gaining financial freedom and independence. Use the following tips to make budgeting both interesting and useful for a bright financial future!
Track Your Cash Flow:
Add up the money you'll make from all your jobs! Add up all of your sources of income, including your regular employment, your side gigs, and the cash you received from the Aunties that show up at your house from time to time. Then, track all of your fixed and variable expenses to understand where most of your income is going and how you can better manage it.
Monetary aims? Bring It On
Envision yourself establishing a new start-up or relaxing on Krabi island. Determine your financial objectives, however lofty or modest they may be. Setting goals helps you stay motivated and on track, whether you're trying to save up for a fancy vacation or a fancy new car.
Understanding the Difference Between Needs and Wants
Essentials include rent, groceries, and Netflix. Nice to have, but not necessary: designer shoes. Put your desires on the back burner!
Keep an eye on your spending!
Spending may quickly add up if you're not careful. Keeping tabs on your spending is stalking (but not in a bad way). Put your favorite tools to use, whether they are applications or spreadsheets. Being in charge has never been so awesome.
Stay out of Debt - Drama Free Zone!
Stay away from the financial drama; it won't win any awards. Avoid taking on additional high-interest debt and focus on paying off existing obligations. Use your discretion while swiping; you're not a spendthrift, after all.
Enjoy Successes; You're Doing Great!
Every successful financial outcome calls for a little celebration. Treat yourself when eliminating debt, reaching financial goals, or maintaining progress!
