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Budget Your Money Right

Want to learn how to start a good spending plan?

The teenage years often involve a first job. Whether it’s babysitting, mowing lawns or working at a grocery store, they are all a source of income that requires responsible handling. A budget can ensure that your money is being spent in the most valuable way. Creating a budget and abiding to it, is not as easy as it looks , so here is some tips to help you nail that spending plan:

Establish a goal –
Setting a goal to reach either monthly, quarterly or yearly helps. Create a purpose for that goal (college, laptop, trip etc.). Don’t stop there, write it down too. Put the goal in a place that you can visually see it (like a goal setting thermometer.

Put some away –
Put away a percentage of each paycheck away in savings, putting it towards a big purchase or for future use. This is where the term “save for a raining day” comes into play. Having peace of mind that you are covered if need be.

Use cash –
Studies have shown that individuals consider their purchases more thoroughly when spending physical cash, compared to swiping a plastic card, meanwhile also preventing credit card debt.

Use a list –
Keeping a list allows you to visualize what you are spending your money on, while allowing you to analyze it and recognize if your money is being spent wisely.

Use money tracking APPs –
There are many different financial apps out there. Don’t be afraid to try one out. Budgeting and analyzing your cash flow can easily be done on your smart-phone.

Talk to an adult –
Don’t be afraid to talk financial matters with someone you trust. Getting tips and even some help can get you off on the right foot.

Avoid impulse spending –
Creating a budget allows minimal room for your money to be spent on unnecessary products. Having a reason for each dollar curbs the impulse spending.

Reward yourself –
It’s okay to reward yourself once in awhile when you’ve reached a financial goal. Just be mindful. Don’t go back to square one and do the above, impulse spending.

A budget is a framework for anticipated earnings and spendings, while recording cash flow and establishing financial goals, in result, allowing you to make sound financial decisions.

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