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How to Adult: Budgeting
Adulthood and budgets go hand-in-hand. Whether the money comes from allowances or a job, everyone should practice a budget. Check out these tips to learn how to budget.
Determine Monthly Income
Figure out how much money you make weekly and add it up to determine your monthly income. Also, determine how much of that money goes to necessities like gas, rent and insurance.
Needs vs Wants
With your own income and the freedom to spend it on anything, remember not to spend it unwisely. When you want to buy something step back and think if it’s really necessary. Don’t make regretful purchases that won’t be useful long term.
Learn How to Save
Save up before a purchase. Don’t spend all the money at once. Saving it will make it last longer, and make it easier to live when bills eventually come into the picture. This also ensures financial support if your monthly income stops suddenly.
Make a Savings Account
A bank account that you can’t access from a phone will not tempt spending. Set up an automatic deposit that will put a part of your paychecks into a savings account. This savings account will keep that money safe in the bank.
Keep Track of Monthly Spending
Being aware of your spending prevents overspending. Write down monthly expenses and spending in a journal to stay organized. This helps keep track of where the money goes. The app Digit helps save and analyze the spending in your banking account as well without having to keep track of a journal or piece of paper.
Keep the Budget
Finally, come up with a budget. Decide how much money to save and how much to use for spending. Make budgeting a habit and adulthood will be much easier.