I’m always on the look-out for money advice to pass on. Tip number 3 in my 5 Ways To Be Successful is ” The only way to have money is to spend less than you have”. This is so obviously true that it escapes notice. When you’ve eaten the whole piece of cake all you have is an empty plate.
There are people, and I know a few of them, whose money philosophy is the Rumpelstiltskin: When you spend money, more appears. By magic. If only that were so!
To preserve your $$ and your sanity, start with a budget. Its not intimidating.
Step One is to write down all of the things that matter to you that create an expense. Add in a few bucks for beer on Friday night with friends but keep in mind your goal of having money left over. Separate your needs ( a handbag that looks good and holds all your stuff) from wants (Prada) How easy was that?
Step Two If you are working, even in a campus job, pay yourself first. Take 10% our of each pay check and put it in a savings account. Even if your check is for $25, those 10 per cents add up! The only loophole is if you are working full time and have debt equal to 6 months of your income. In that event, pay off the debt as quickly as possible and then save.
Step Three According to the website You Need A Budget, before your paycheck is in hand, give each dollar a job. $250 for a car payment. $200 for food. $100 for future expenses like your next tuition bill or to buy new tires. Now you know what each dollar is going to do so you don’t have to stress.
That’s a budget. You’ve completed your task with ease. Stick to it by not buying more than you have dollars with no assigned job (savings is an assigned job!). Pay your bills in full before the due date to avoid penalties and fees. Strive to do that with money you earned last month. Simple. Really.
If you want to know more about finance, read or listen to Suze Orman. Her advice is straight forward, understandable and non-judgemental.
Do you know how to prepare a budget for a college student? I do! firstname.lastname@example.org or 610-212-6679.