You're Never Too Young to Budget

“Yea, I’m getting this credit card JUST to build my credit.”

“No, I’m not going to buy much…just some bedding, some towels, this pretty lamp, I like that chair, oooh and a new computer.”

“What!? You actually balance your checkbook?”

Like many young people (and more than a few older people), I am learning to be more responsible with my money, particularly now that I’ve moved out of the house, need to buy a car, and am trying to pay for school. Just looking at that list gives me the heebie-jeebies!

One of the first steps I want to take towards becoming financially independent is creating a functional, reasonable budget. Of course, I can’t talk about how much I make a week – after all, this publication is my only source of income! But I can show you the ropes of setting up a budget, the different kinds, and so on.

Creating a budget helps you keep your finances in order – knowing how much you can spend on what is important, but it requires total honesty. Lying to yourself is worse than lying to other people, and in this case, it’s financially damaging!

For more tips on getting your budget started, click here!

Many sites online help you to create a budget. Use this budgeting service to help get you started. Of course, there are other ways to budget!

1. Envelope Budgets  - Dave Ramsey – and my local credit union – swears by these! You have an envelope labeled for each category you spend money on.
2. Classic – If you can trust yourself, grab a notebook and draw out categories, then list the amount you can spend on each. You’ll save money spent on envelopes this way, at least.
3. Long-term budgets – You can budget your money for long-term goals – say, investments, down payments, vacations, etc. These should go into a separate category of their own and be termed as something like, “Extra savings,” “Long-term goals,” etc.

If you want to learn more about the different kinds of budgets and how to use them, check out this site.

Budgeting will definitely help to keep your financial goals in line, and help you stop unnecessary spending. If you need more help, turn to an adult, financial advisor, or call your bank.