Welcome back guys to the second publishing of the Top 6 Money Management Tips for Young Men.
Before I get back to talking money management.
Going back to the first publication, we talked about saving, paying on time, and working for the money you have; all very important financial habits.
Hopefully you have already planned on ways to implement these tips into your daily life.
If you haven't, no worries, here are 3 more great money habits to develop at a young age.
1.
Make a Budget The act of Budgeting is "to allocate funds to," or"to plan or provide for the use of.
" Assigning a certain amount of money to a certain use and sticking to it requires a huge amount of discipline, which is why budgeting is so valuable these day.
The ability to purchase anything at anytime is more abundant than ever.
You need to know how much of your money is going to a certain expense.
Personally, no I don't track my expenses down to the last cent, but a budget needs to be well kept enough to where you know when to pull back on the spending in a certain area, or if you have more money to enjoy somewhere else.
Let's face it budgeting can be...
Boring, BUT since it might be your first time making a written budget, let's make this as simple as possible: First, you want to start with your income.
You can't have a budget without money, so figure out how much you make on average per month.
(I like to do my budgets monthly, but feel free to do it differently) Next, you want to figure out your fixed expenses.
What are you spending your money on regularly?? Whether its bills or rent, write those costs down next.
If you don't yet have the responsibility of such payments, writing down the money you save each pay period will be fine.
Finally, you want to set your spending goals for each category with the leftover money.
One of my good friends Warren Buffet said, "Spend what is left after saving.
" So that's exactly what we're going to do.
Come up with a few categories you tend to spend your money on the most, and set a dollar amount per month for each category.
Areas like entertainment, clothes, and food are the most common; any other unusual expenses can be put in an "other" category.
As with many things, there are a lot of different ways to do a budget.
I just find this way the most simple and effective for someone starting out.
2.
Don't Spend What You Don't Have (Or Have Just Enough For) This one is pretty self explanatory, and is distantly related to budgeting.
Spending money you don't have is the recipe for disaster; and just because you do have it doesn't mean it has to be spent.
As we grow older, there will be situations where this rule seems to be exempt like buying a home or car.
(It isn't really, but we aren't going to get too deep into that) But since we aren't buying houses and cars yet, let's just stick to what we DO have.
If you make any type of regular income, you don't ever want to see either of your bank accounts getting in the teens; operating "paycheck to paycheck"You can avoid this by sticking to your budget, but also by prioritizing.
Picking what's important and what's not important is extremely essential to financial success.
We prioritize subconsciously every day, but somehow that passive ability goes out of the window when we're pressured to buy something, or see the newest thing on the shelves.
Before you purchase something, ask yourself if you need it, if not, that's okay, but then ask yourself if you truly want it.
If you've paid your dues, and have legitimately saved up for something you have been wanting, buy it and be proud! But always remember; don't go broke trying to seem rich.
3.
Give I don't think this can actually count as a money management tip, but it was on my heart and I had to share it.
We now live in a society where many people just worry about themselves and "getting mine" especially when it comes to money.
But we say we want to see improvement? It makes no sense to me.
You are a big conglomeration of every situation you've been in, and every person that has invested time into you.
What sense does it make to not give back to the positive people that made you who you are?? We hear these stories about people coming into a huge amount of money, but not giving a penny to their close friends or families.
It sucks, and it starts with us.
Don't get this twisted with thinking you have to give everybody money though.
You'll drive yourself crazy trying to, but there are plenty of ways to invest into people and organizations without a dollar amount; so be creative.
If you constantly do things for yourself and for your own good, will you really be celebrated for what you did? Or just acknowledged? Of course there are plenty more money management tips that could help out any young man.
If you have some, I want to hear them in the comments section below! As always, share and subscribe!
Before I get back to talking money management.
Going back to the first publication, we talked about saving, paying on time, and working for the money you have; all very important financial habits.
Hopefully you have already planned on ways to implement these tips into your daily life.
If you haven't, no worries, here are 3 more great money habits to develop at a young age.
1.
Make a Budget The act of Budgeting is "to allocate funds to," or"to plan or provide for the use of.
" Assigning a certain amount of money to a certain use and sticking to it requires a huge amount of discipline, which is why budgeting is so valuable these day.
The ability to purchase anything at anytime is more abundant than ever.
You need to know how much of your money is going to a certain expense.
Personally, no I don't track my expenses down to the last cent, but a budget needs to be well kept enough to where you know when to pull back on the spending in a certain area, or if you have more money to enjoy somewhere else.
Let's face it budgeting can be...
Boring, BUT since it might be your first time making a written budget, let's make this as simple as possible: First, you want to start with your income.
You can't have a budget without money, so figure out how much you make on average per month.
(I like to do my budgets monthly, but feel free to do it differently) Next, you want to figure out your fixed expenses.
What are you spending your money on regularly?? Whether its bills or rent, write those costs down next.
If you don't yet have the responsibility of such payments, writing down the money you save each pay period will be fine.
Finally, you want to set your spending goals for each category with the leftover money.
One of my good friends Warren Buffet said, "Spend what is left after saving.
" So that's exactly what we're going to do.
Come up with a few categories you tend to spend your money on the most, and set a dollar amount per month for each category.
Areas like entertainment, clothes, and food are the most common; any other unusual expenses can be put in an "other" category.
As with many things, there are a lot of different ways to do a budget.
I just find this way the most simple and effective for someone starting out.
2.
Don't Spend What You Don't Have (Or Have Just Enough For) This one is pretty self explanatory, and is distantly related to budgeting.
Spending money you don't have is the recipe for disaster; and just because you do have it doesn't mean it has to be spent.
As we grow older, there will be situations where this rule seems to be exempt like buying a home or car.
(It isn't really, but we aren't going to get too deep into that) But since we aren't buying houses and cars yet, let's just stick to what we DO have.
If you make any type of regular income, you don't ever want to see either of your bank accounts getting in the teens; operating "paycheck to paycheck"You can avoid this by sticking to your budget, but also by prioritizing.
Picking what's important and what's not important is extremely essential to financial success.
We prioritize subconsciously every day, but somehow that passive ability goes out of the window when we're pressured to buy something, or see the newest thing on the shelves.
Before you purchase something, ask yourself if you need it, if not, that's okay, but then ask yourself if you truly want it.
If you've paid your dues, and have legitimately saved up for something you have been wanting, buy it and be proud! But always remember; don't go broke trying to seem rich.
3.
Give I don't think this can actually count as a money management tip, but it was on my heart and I had to share it.
We now live in a society where many people just worry about themselves and "getting mine" especially when it comes to money.
But we say we want to see improvement? It makes no sense to me.
You are a big conglomeration of every situation you've been in, and every person that has invested time into you.
What sense does it make to not give back to the positive people that made you who you are?? We hear these stories about people coming into a huge amount of money, but not giving a penny to their close friends or families.
It sucks, and it starts with us.
Don't get this twisted with thinking you have to give everybody money though.
You'll drive yourself crazy trying to, but there are plenty of ways to invest into people and organizations without a dollar amount; so be creative.
If you constantly do things for yourself and for your own good, will you really be celebrated for what you did? Or just acknowledged? Of course there are plenty more money management tips that could help out any young man.
If you have some, I want to hear them in the comments section below! As always, share and subscribe!