Photo By: Sabrina Starnes
Paying bills, filing taxes and financial management are essential life skills every soon-to-be adult should be equipped with in entering a system designed around accountability and responsibility.
Be Honest About Your Budget
It’s your money — there’s really no sense in lying to yourself about how much you’re going to spend when making a budget. The only person you hurt when doing this is yourself. On the other hand, if you have no idea how you spend your money, your budget may take a few months to solidify. In the meantime, don’t put down any hard numbers until you can get realistic with yourself.
Warren Buffet is one of the richest men in the United States and the world. One of the concepts he lives by is to simply “save before you spend” and not vice versa. Often times people, not just students, naturally gravitate towards their first option for instant gratification. Discipline here will reward plentifully in the future.
Invest Early and Often
There’s a difference between investing and gambling. An investment could be something like buying a mutual fund or buying a collectible edition of a DVD set. Diversification is key to not going under. Don’t put all your eggs in one basket. If you put all your money in to something that may not come back strong, you could end up just shooting yourself in the foot.
Think for the Future
Set priorities. Spend what you have, not what you hope to make. You may think of yourself as a high earner, but if your money doesn’t back up that statement, you are sacrificing future financial security. The first and greatest rule of spending money is this: unless it’s an emergency, only spend money that you have, not money that you expect to make. This should keep you out of debt and planning well for the future.
Always be in pursuit of something on the horizon. Even if you have nothing to save up for, that doesn’t mean future expenses won’t arise whether they be recreational or academic. It’s always nice to keep your options open.
Avoid Debt Accumulation
Debt is one of the most powerful shackles that tie down people and enslave the indebted to the collector. Pay everything on time, because there is no escape. Even better is to avoid any debt. Debt is the antonym to progress and if money is burning a hole in your pocket, just remember that it will likely cost less in the future. Good things will come to those who wait.