Taking Control of My Finances: A Personal Journey
As a young adult, managing my finances can be a daunting task. Despite knowing what I should do to save money, pay off debt, and limit spending, getting started can be overwhelming. The truth is, I’ve had to find methods that work for me and my budget. With a salary at the lower end of $30,000 and over $30,000 in debt, I’ve had to get creative.
Small Steps to Savings
One of the most significant changes I’ve made is setting aside a fixed amount of money each week. I started with $10 when I was in high school, and now I’ve increased it to $15. It may not seem like much, but it’s a start. I’ve learned that saving doesn’t have to be a massive commitment; it can start small.
Divide and Conquer
Another approach I’ve taken is dividing my income into two accounts: one for bills and monthly payments, and another for spending and savings. This system has helped me hold myself accountable and plan for upcoming purchases. By designating needs, wants, and to-be-saved-for items, I’ve become more mindful of my spending habits.
The Power of Cash
I’ve also started hoarding money in labeled envelopes, similar to how I used to save as a kid. Watching the physical money build gives me a sense of satisfaction and motivation to reach my goals. This method has been particularly helpful for saving for travel, as I can see my progress and appreciate the fruits of my labor.
Lessons Learned
Over time, these methods have helped me become less afraid of my finances and more honest with myself. I’ve learned that being in control of my finances doesn’t require being a financial expert; it starts with acknowledging what I don’t know and being willing to learn. By taking small steps and finding methods that work for me, I’ve gained confidence in my ability to manage my money and achieve my goals.
Leave a Reply