The Real Secret to Personal Finance
And no, it does not mean you have to stay in every night
 |
| Photo from: Lifehacker.com |
Personal finances can be a scary subject. Usually, in college, most people try to avoid them. Looking at your finances can be stressful, upsetting, and cause a lot of anxiety. It is no secret college students do not have a lot of money. So, how are college kids supposed to save money? First things first, you have to overcome the fear. You cannot stay in the dark about your finances. Nor should you think that just because you have no money, there is no reason to budget, or try to save, because it would not make a difference.
When it comes to personal finance, it does not have to be boring and suck. And no, to be on top of your personal finances does not mean you need to stay in every night, and never go out and have any fun. The secret?
#1 It is all about having whatever YOU want
How? How can I budget out my money, and save, all while having whatever I want? It's rather easy actually. Saving money, is all about only spending money on the things that YOU actually want. If you want to have a coffee that day, have it! BUT, if you do not want the dinner at Applebee's and are only going to see friends, skip it! You make money for what you want! But we don't budget in what other people want. This is why it is important to say no to those things you don't want. By doing this, you will have a little extra money to spend going out, or whatever it is that you like to do!
The secret? In case you missed it, the secret is to figure out exactly what YOU want, and cut everything else out. Look through your bank statements. It is amazing how many times we spend money on things we don't even want just because we are with someone else that does want it.
BUT, this applies to other things as well. If you want to go on vacation. Okay, do it! But, this might mean you decide you don't really want to spend more than $30 dollars on a shirt this year. Or you don't really want to go out to eat every other night. It is all about picking what truly matters to you.
Now, I get it. It can be hard to find what exactly it is that you want. And it can be even harder to not frivolously spend when you are out and about. Personal finances is really all about finding what you think is important and learning how to control yourself. You have to push past the thinking of, "I get paid again in 3 days", or "It will make me feel good to buy this", or even worse "I have some extra money in the bank!" This is how you end up with no money, ever, and rarely even get to do what you actually want.
After you figure out what it is you want... clean up your spending. But, how? How do I clean up my spending habits?
- Hide your money
- Keep trying to make the most money possible
- Invest your money
- Work on paying off any overarching debt
- Leave your debit card at home if you think you will spend too much. Bring exact money only
So, you have determined what is really important to you, you are cleaning up your spending habits, now what?
Well, that is up to you. It is important to keep a goal in mind, otherwise you will have a harder time saving. You might want to consider some long term goals, and why they are important to you as well. Such as, buying a house. Goals are huge when it comes to managing your finances.
Remember, people will always find a way to pay for what they want. And, you can have anything you want! But, it is important to cut some other spending to save money. Trust me, your later self will thank you!
What is it that you really want?
Comments
Post a Comment