For most of us, our twenties are the first time we really ever had to manage our own money. It is one of those real-life skills you do not get to learn in college, but rather have to figure out for yourself. Many of us don’t really take all of this seriously until we have to. I’ll make it easy for you. Just follow the following five simple steps:
Sign Up For Any Online Money Managment Tool
Why reinvent the wheel when there are already money management tools out there? Start by creating an account on Mint, which is my go-to finance app. The best part is that it’s free! They make it very easy to get started and to link all the other accounts you have so that everything is in one place. They also help you budget, save, pay your bills on time, and more. Being able to see your finances in a clean, easy-to-use interface makes this process a lot less daunting.
Calculate the Monthly Cost of Living
Once you have created an account using a money management tool, the next step will really open your eyes to the reality of your finances. Calculating the exact amount you spend each month is essential when it comes to getting a better understanding of your finances. When I sat down and did this, it certainly felt like I was taking control of my finances, which is an amazing feeling. This amount covers all those monthly expenses such as rent, cable, food, pilates, haircuts, shopping, everything that you consistently spend your money on. From there, you can compare what you spend each month to what you make and adjust accordingly.
Keep A Track of Your Monthly Bills
The most tricky part of managing your own money is keeping track of all those monthly bills. Keep a track of all your bills so you know when everything is due. This also helps you calculate the monthly expenditure at the end of the month!
Put Away Money Each Month