Posted on July 12, 2023

Being young and living on your own can be both thrilling and scary all at the same time. It’s exciting to finally have your own place, but it’s also worrying because of all the bills that you need to pay. The key to staying on top of your finances is to start budgeting. This means making a plan on how to spend your money so that you can still pay for the things you need while also getting what you want. In this blog post, we’ll explore the importance of budgeting and the things you need to know to get started.

1. Determine Your Income and Expenses

The first thing you need to do when creating a budget is to determine how much money you earn and how much you spend in a month. Write down all your sources of income, including your salary, allowances, and any financial assistance you receive. Next, list down all your bills and expenses, such as rent, utilities, groceries, and transportation. Once you have these numbers, you can see how much money you have left over for non-essential purchases.

2. Create a Spending Plan

The next step is to create a spending plan based on your income and expenses. Allocate your funds according to what you need to pay for first, such as rent, utilities, and other bills. Then, set aside money for your savings and emergency fund. Finally, assign money for your leisure activities such as hobbies, entertainment, and dining out. It’s important to stick to this plan to avoid overspending.

3. Track Your Spending

It’s easy to lose track of your spending, especially when you use credit cards or mobile wallets in your purchases. Make sure to record your expenses daily so you can see where your money is going. There are many apps and spreadsheets available online that you can use to track your spending. Once you see that you’re spending too much in a certain area, you can adjust your budget accordingly.

4. Make Adjustments

Your budget isn’t set in stone. You can always adjust it whenever you need to. For instance, you can lower your electricity bill by conserving energy or downgrading your cable subscription. Additionally, you can find ways to increase your income, such as working part-time or freelancing. By making these adjustments, you can stay on top of your finances and avoid money problems.

5. Reap the Benefits

The benefits of budgeting are numerous. By being in control of your finances, you can avoid overdraft fees, interest charges, and debt. Additionally, you’ll feel more confident and empowered knowing you have a handle on your money. And once you’ve achieved your savings goals, you can enjoy the fruits of your labor, travel, or invest in yourself.

Budgeting is a skill that takes time and effort to master. But once you get the hang of it, you’ll be able to enjoy the benefits that come with financial freedom. By determining your income and expenses, creating a spending plan, tracking your spending, making adjustments, and reaping the benefits, you can stay on top of your finances and achieve your financial goals. Remember, budgeting isn’t just about saving money, it’s about using your resources wisely to live the life you want. So, what are you waiting for? Start budgeting today! If you are an eligible former or current foster youth between the ages of 15 -23 your can get these budgeting services for free! Just use the contact form to reach out!