If you're anything like me or the rest of my peers, maybe you like spending money. Maybe a little too much sometimes. Maybe you buy things and then immediately regret it. Maybe you fear getting a credit card. Maybe your savings account is beyond sad. Maybe you don't even have a savings account.
Fear not! I too once was/am financially challenged. Trying to balance school and activities and having a social life along with to add tons of work hours seems impossible sometimes. But after some trial and error, I have actually managed to find some successful ways that I don't need to work two billion hours to actually save some money.
I may be completely unqualified, but here are some of the tactics that worked best for me:
1. Use cash.
For some reason I remember learning in junior economics class that spending cash is more painful psychologically than using a card. Think about it: forking over that $7 for Wendy's is way harder than spending $40 using Amazon's "1-Click" feature. When you use cash, you'll never spend money you don't have. And you won't be shocked at the sight of your account balance after a shopping trip with your debit card.
2. Envelope budgeting.
Honestly, this was a game-changer for my finances. It's simple: decide what the things are in your life on which you spend money (ie. food, clothing, rent, etc.), divide how much of each paycheck you want/need to dedicate to each of these things (ie. 20% to food), then divide your cashed paycheck amongst envelopes for each. I have little decorated envelopes for food, gas, my phone bill, activity dues, and (of course) shopping. I only spend from the envelopes, which means I don't overspend. It's ridiculously easy.
3. Open a savings and a checking account.
If you're like me and have more than one job, two accounts is nice to split up direct deposits. If you only have one job, look into your bank's options as far as splitting up your paycheck amongst your two accounts. It makes saving much simpler. And if you don't have a bank account at all, get one. Seriously. It's the first step to adulting.
4. Save 50%.
My dad gave me this advice and it has held up. Save half of each paycheck. Put it away. Don't touch it. If you're looking into going to college in the future, this is great for making a dent in tuition or book costs. If you're in college, saving is super important for when you graduate and are hit by the bus of reality (and student loans... yikes).
5. Go grocery shopping instead of eating out.
For one week, keep track of how much you spend at restaurants and on fast food. It's honestly ridiculous. When I stopped ordering so much pizza after class and started doing a little grocery shopping instead, I had way more food and way more money to spend on it. Simply brewing your own coffee in the morning instead of buying it elsewhere will save you an insane amount of money.
6. Mason jar savings.
Been eyeing that new iPhone? Want to invest in a new TV? Don't drop hundreds of dollars on something out of the blue. Figure out how much you can set aside each paycheck, and put some money in a mason jar and hide it away. Before you know it, you'll have saved up enough money to make that big purchase without even trying to. And spending that money won't hurt nearly as much as wiping out your entire life-savings.
Side note: NEVER EVER EVER RENT-TO-OWN ANYTHING. You will spend twice as much as you would if you had just bought the thing in the first place. Put those payments in a mason jar instead. You're welcome.
7. Saving for nothing.
I have 5% of my paycheck dedicated to absolutely nothing. I put it in a bottle in my closet. If something pops up, like a spontaneous road trip (or trip to the mall...), I have a chunk of money to work with. This way, I don't have to dip into my savings to have a little fun. If nothing pops up, there's always Christmas shopping around the corner.
8. Reward yourself.
Have you ever tried to diet? You eat like a rabbit all week, then Friday rolls around and you eat an entire pizza by yourself. Budgeting is the same way. It's okay to let yourself use your money (it's yours, after all). You just have to remember your boundaries. Worked a few extra hours this week? Buy yourself that sweater that's not on sale! Got fired? Maybe retail therapy isn't a good option for you.
We're young! Life is confusing! Adulting is hard! But getting your money in order shouldn't be one of your worries.
