When you are under 30 years old, it can feel like the world is at your feet and you are invincible. However, if you want to set yourself up for a better future, it is a good idea to get your finances in order now and set up the kind of financial habits that you can carry through for life. So, if you are young and starting to think about your financial health, here are a few budgeting tips to help you out.
Write Out a Budget (or Use an App)
The majority of households do not operate using a budget, which is a problem as you cannot be sure where your money is going every month. Many young people are now using budgeting apps to keep track of their financial situation. However, if you still prefer to do things the old-fashioned way, you can always write out your expenditures. You may find that you are shocked by how much you are paying for your daily coffee or twice weekly takeaway. Straight away, this can spur you into action, allowing you to make the necessary changes to your financial situation. The Balance can help with a household budget.
Learn to Save
One of the best budgeting tips that we can provide is to learn to save. In the past few years, this has become something of a lost art form as there are so many ways of accessing instant money. While credit cards and loans aren’t a bad thing in of themselves, you need to ensure that you have a clear strategy for paying them back. When you have an unnecessary but desired personal purchase that you would like to make, it is a great habit to learn to save up for it rather than buying it instantly. After all, this is what we all used to do when we were kids and would save up our pocket money!
Shop with a List and Cook
The ready availability of food made to order has driven out cooking in a big way. However, rediscovering this lost art is always going to have a positive impact on your budget. First and foremost, when you go to the supermarket, you should do so with a list. This way, you are not going to be tempted into buying anything that you do not need, which can easily happen when you shop whilst hungry. Then, you should learn to cook a couple of simple dishes. Over time, you can start to add more and more to your repertoire until you have reached the stage where you have enough to sustain yourself for each and every week. This way, food made to order can become a luxury like it was always supposed to be!
There is a lot to say about budgeting when you are young, but these three tips will certainly stand you in good stead. So, now is a great opportunity to put them all into practice to see what a difference they could make to your financial health.
