To avoid getting bogged down in the financial problems at the dawn of your adult life, you will need to take certain steps.
If you are planning to go to an apartment while studying, be prepared and make a budget before you even move in.
- Statistics show that young people are often heavily indebted, partly due to the fact that they have to pay for their studies with part-time and often minimum wage work.
Tips to Practice Today
- Start putting money into your savings account one year before you go into an apartment. This will avoid going with the rope around your neck.
- Record your basic needs and income.
- Make a budget for the next six months and stick to it to the letter by updating it regularly.
- Use budget templates that you find on the internet, or if you are comfortable with Excel, create one that suits you.
- Make sure your income will be bigger than your expenses while keeping an amount for a savings account.
- Touch your savings account only in case of absolute necessity and bail it out as soon as possible.
- Include in your budget all unanticipated expenses you have incurred. This will allow you to readjust your budget for the next few months.
- Reduce your expenses by keeping only the essentials. Avoid extra, luxury goods and unnecessary expenses.
- Do not accept cards or lines of credit. Only your savings account should be used to troubleshoot.
- To build a good credit history, pay your accounts on time and keep a good amount in your savings account. No need to take a credit card for that.
- Find yourself a full-time summer job to help you pay for your tuition.
- Take an apartment that fits your budget and, if necessary, take a roommate.
- Make yourself a list before you do your grocery shopping and stick to it.
- Whenever are you about to make an expense, ask yourself, “Do I really need it?
- Use public transportation and biking instead of buying a car, and carpooling when traveling long distances.
- Use your tax returns to increase your savings account.
- If you have an out-of-pocket amount, remove it from your account and put it in your wallet. You will see it decrease and you will know when you stop.
- To avoid delays, make pre-authorized payments for your current accounts.
- Do not hesitate to ask your family for help in case of a blow.
- Be tenacious and think about your future. If you yield to the temptation of luxury and credit, you will begin your life indebted and it is very difficult to get out.