The main steps to creating your budget
Planning your finances is a challenge for every young person. After all, there are so many temptations: rest with friends, everyday purchases and long-desired things, which financial dependence on parents prevents from acquiring.
We have summarized tips that will come in handy for those who want to plan their own budget and predict expenses.
Nowadays, young people have great job opportunities. Enterprises are increasingly starting to offer jobs to students and schoolchildren; young people can combine work with study. True, we must reckon with the fact that at first, they will most likely not pay as much as you want. But it will be incomes that you can already spend and plan as you wish. If you learn to plan finances, it will be easier to evaluate what is needed, how you can save money and how to save money for larger purchases.
When you start working, you need to think about how to successfully plan your finances and predict expenses.
- Plan your budget and calculate income. To successfully determine your monthly budget, you need to know the amount of income, such as salaries and scholarships.
- Rate your priorities. Always make the most important payments first, for example, for rental apartments and utilities. Priorities may vary. If you live with your parents, then paying for your studies may be a priority.
- Make priority payments on time. After receiving monthly income, immediately postpone the amount necessary for these payments; this will help to plan further necessary expenses.
- Plan food expenses. Before you go to the store, make a shopping list. If you plan your meals, the products will not go bad, they will not have to be thrown away, in addition, you will never forget to buy anything.
- Consider monthly transportation costs.
- Remember that life is unpredictable, so unplanned expenses can always be. For example, winter boots may suddenly leak and you will have to buy new ones. If a month passes without surprises, then you can transfer the money to a savings account.
- Do not forget about entertainment and other purchases. Of course, you need to relax and have fun, but evaluate and choose entertainment that you really can afford.
- Save money. Do you need a new computer or want to buy a new phone? Open a savings account and transfer 10% of your income into it every month. You won’t even notice how you accumulate on what you have long dreamed of.
Take care of your finances, because it is a concern for yourself and your future.