It goes without saying that budgeting is a difficult task. It’s not easy to regularly keep track of your spending, and make sure you are paying back your credit card on time. However, all young people should learn how to budget, so here are some tips to follow to make this easier.
1. Keep Track of Every Expense as Soon as It Happens
It may seem a bit tedious, but at the end of the day when you’re wondering how much money you spent, at least you will have answers. It is as simple as this; after you go to the grocery store, jot down the amount you spent. You will thank me later.
2. Create a Budget in Excel
The great thing about Excel is that it does the math for you. Why not take advantage of what you have at your disposal and use this great resource? Not only will it help you to keep track of your finances, but it will also enable you to advance your skillset in this highly useful application. This can eventually lead to proficiency in the program, which you can put on your resume!
If you need help getting started with creating a budget, here’s a great resource to learn how to build an Excel budget template. If you need a little bit extra guidance, check out the YouTube video below!
3. Invest In A Budgeting App
Maybe the notes and excel method is not for you. No worries; there are totally other alternatives! Not only will Mint help you budget, but it will also help you track all of your personal finances and learn how to improve your credit. You don’t have to worry about the price since it’s free, so you may as well give it a try.
If Mint is not doing it for you, there is also the option of using the Level Money app. This app is basically a GPS for keeping track of your monthly spending. Confused about how many Ubers you are calling and how much you are spending on them total? This app is perfect for that.
4. Research Credit Cards
Now you may not realize this just yet, but it is extremely important to start building credit. Credit will help you buy your first car, rent your dream apartment in New York or achieve whatever other aspirations you have your sights set on.
Now you may be thinking, “What even is credit, and have I already started building it?” Credit is what you are creating when you are swiping a credit card; you’re trusted to pay back your credit, usually on your credit card provider’s app or website. By doing this, you’re building up your credit score. Your credit score indicates your ability to pay back a loan and will help you make bigger purchases later in life.
When you get your first credit card, it’s crucial that you are paying it back monthly. To play it safe, you should pay it back about a week before it is due. Maybe it will harm your bank account in the short term, but you will fare just fine.
Some credit cards I recommend beginners start with are:
- Capital One Journey Student Credit Card
- Discover It Student Chrome Card
- Citi ThankYou Preferred Credit Card for Students
Be independent and build up that credit score sooner than later!
Maybe five minutes ago, you were completely lost in the sauce about your finances. With these quick tips, you can alter the entire financial playing field. You can be financially savvy in no time, so what are you waiting for?
