If you’re young and in high school or college right now, it’s very likely that you haven’t had to think too much about being financially savvy or prepared. In fact, you may be looking at hefty student loans or other financial decisions that could affect your entire future.
However, don’t fret because starting a budget now and learning more about how the financial world works could make the difference between an extremely successful and financially independent future and financial shackles.
I don’t mean to be dramatic but financial literacy is seriously lacking in America, even among well-educated people like yourself. It’s surprisingly simple to become savvy with money. It just takes a little bit of time and a lot of discipline.
Here’s how you get started:
1. Pick a Method
With budgets in particular, you can either go old school with spreadsheets or use an online tool. My guess is that an online tool would be easiest for on the go. Download an app like Mint or Budget Ease, and keep track of your spending. You can have it automatically sync with your bank account or you can send in that data yourself. This shows you that you might spend the majority of your cash on coke and pizza and maybe it’s time to cut back just a tad.
2. Make it a Habit
It’s one thing to download a money tracking app and use it for a few days, but the really successful and financially savvy people make it a habit. Becoming financially independent is a long, long road, and unfortunately no one can make it happen for you. Set reminders on your phone or computer to check your accounts and your spending every day. It’ll only take a few minutes, and eventually it will feel like second nature. Trust me, you’ll be glad you did.
3. Read About Successes
It might feel sort of lame to make a budget when all your friends around you are spending their parents’ money like it’s going out of style. So, in order to counteract that peer pressure, start reading stories about successful people.
Read the story about the college senior who built an app and sold it for several thousand dollars. Read about the young guy who has been saving money and investing it since he was a teenager. Read about others who created successful businesses out of their dorm room and handled the profits and their money with a careful eye.
Reading about people who have done great things with their budgets and their money techniques will help you to stay away from the trendy clothes and keep your eye on the prize. You should also make it a habit to read financial blogs and keep track of the latest trends in the stock market. Reading about the economy doesn’t have to be boring, especially if you follow companies who create products you like.
Ultimately, it’s relatively simple to get started on the track to financial freedom, and there is truly no better time to start than when you are young. It might be a long road and might be hard to resist some temptations now, but it will definitely be worth it in the long run, I can promise you that.