I know we’re young and think we’re invincible, but the harsh reality of adulthood is coming fast and with a force. We need to get a head start in life, and this includes money management. We should all learn to take care of our earnings, and spend them wisely.
Some of us don’t have jobs yet, including myself, but we see our parents and how they handle money. We’re old enough to know what good habits are and what mistakes they’ve made. The basic rule of money management is the 50/30/20 plan, but how do we get there?
To start a financial plan, figure out what the necessities and luxuries are in your life. When you make a plan, stick to it. This is the key point to money management. Know what you’re spending money on and how much of it. Not that hard right? Just like that, you’re almost a third of the way there. With hardwork and dedication it can be done.
A plan that is good and balanced in your everyday life can be altered just by one simple mistake. So now let’s get into the 50/30/20 rule. What does this mean? The basic money management term means you should only spend 50% of your money on necessities, such as bills, housing, groceries, and gas. Thirty percent should go to your hobbies and interests. Use that money to splurge on yourself. The leftover 20% of your check should be saved. I would recommend a savings account, or finding a safe place to put your money. This portion should only be used in a case of emergency or on a “rainy day.”
Don’t forget, it’s not about the numbers and math. It’s all about your mindset and where you want to be. You don’t have to have the newest nicest phone, the on-brand clothes, or the latest accessories and gadgets, because if you really think about it, is it worth falling into the rabbit hole of mistakes and debt?
We all start somewhere, whether it’s our hardworking earnings, weekly allowances, or even that awesome birthday money. Money is one of the hardest things to make and it’s even harder to keep.Start setting yourself up for a successful life now, because if you can manage money, you can overcome any obstacle.