11 Financial Habits Every New Adult Needs To Learn
Money and adulting is hard. Here are some tips to get by!
1. Mend Your Relationship With Money
Yuck, making a budget is the WORST right?! Well, you can have that mindset or you can have a positive thought process on it. Most millennials like to avoid the process of dealing with money because it's "hard" or "complicated."
Mend that thought-process by thinking about the positives of managing money. Money is good and it helps you do things that you love and helps you live the way that you want to. If you manage it well you can probably take that trip you always wanted, or buy that new blender you've been eyeing for weeks.
It's all about taking a deep breath and thinking, "I got this." Cause you're an adult now, and that's what adults do.
2. Learn How To Make A Budget
Yeah, this sounds scary. But remember... positive attitude! Dive into a few options on HOW to actually make a budget. You can use a variety of tools that help you plan these out, like the 40-30-20-10 rule or budgeting with tools like Personal Capital and You Need A Budget to help.
Remember it's all a process too, and learning to change and make your budget fit for you is a perfect way.
3. Create A "Get Out of Debt" Plan
Yup, you probably have student debt. And you probably have NO idea how to pay it off. Well, make sure that's part of the budget plan. Splitting up that money in chunks and paying it off ASAP can be a huge benefit in the long run. It looks good for your credit and it looks good on your budget in the long run.
4. Set Up A Savings Automatic Transfer
One little sneaky way to get yourself to save? Put that money in your Savings without looking. You can get your bank to set up an automatic transfer into your Savings, and trust me when I say this will help a LOT.
Being able to check out your Saving account and see a chunk of money will be a huge releif, and you won't even notice it.
5. Don't Compare To Yourself To Your Friends
Everyone has a different paycheck, a different amount of debt, and a different amount they are spending on rent. If you are always hanging with that one friend that loves to take shopping trips every weekend, and you know you can't afford that--- don't think you have to be like that.
You also shouldn't feel pressured to be that friend that eats PB&Js for dinner every night because they don't have enough to afford something fancier. You need to find a balance that works for you.
If you morph into someone with spending habits that don't fit your need, you will get off budget, so keep your own habits consistent.
6. Learn To Be Social Without Spending
Not everything that you have to do for funny involves money. As a young adult, myself, I found this has helped me save SO much. You can go on hikes for free, check out a free gallery or museum night for free, and even host a potluck at your house instead of going out.
Eating at an expensive spot costs $$, and busting your wallet to go to that concert might sound like fun for a while. But coming up with creative ways to be social without spending a penny is fun too.
7. Don't Get A Credit Card
Or if you have to get a credit card, learn to pay it off every month. Overspending is more likely to happen with a credit card. If you don't need it, it's best to keep temptation out of your hands, and out of your wallet.
8. Divide The Paycheck Right Away
Take that paycheck and divide it right away! You should know just how much you need for rent, bills, food, and other expenses. And being able to seperate it into catagories helps!
You can even ask HR to divide your paycheck into Savings and Checking accounts. This will help you split it for the weeks or months ahead.
9. Get An App
One of the best things about budgeting now is that there are so many apps out there that help you track and understand your spending. I highly recommend Digit, an app that sends you a reminder of how much you have in your account every day and takes money directly out of your account and into savings based on your habits.
Mint also helps you see exactly where your expenses are going, by separating every one of your expenses into categories. This will help you see when you are going over budget. Then you can look ahead to the next month and stop the bad habit.
10. Always Pack Food
Even if you are just going out for an afternoon hike, or taking a trip to the beach. Having a snack or meal close by will seriously save you when you are tempted to buy something while you are out.
No $8 smoothie will be needed when you just packed a power bar.
11. Tell A Friend
Studies show that if you share your habits with someone, you are more likely to stick to them. Ask a very good friend, maybe someone that you like to spend money with, to HOLD you to your new spending habits. Whether that be to not spend on food when you are out, or keep your night-outs to a 2-drink maximum.
Your friend will help and they might even ask you to help them with their financial challenges too!
Practice makes perfect. And soon you'll be rolling in the dough!
SHARE with someone in their early adulthood that is learning how to manage that moolah!