Alright baby birds, prepare for a regurgitation of stone cold reality: You need to plan for the future. I’m not here to play nice — I’m here to make you successful financially, and we’re going to start your 2016 financial journey with some basic budgeting and money tips.
Back in August, we had an article titled “How to Spend Smart with your Next Paycheck.” In this article, we’ll be going over the first two recommendations we made: Making a budget and roughly estimating your bills.
But before the actual budgeting, there’s always the excuses.
We do realize that many people have trouble saving money for a multitude of reasons. If you live in most major metro areas, especially NYC or San Fran, the average rent is almost definitely “too damn high.” This article is geared towards people who have the capacity to put money towards savings, but find it more convenient to make excuses than to just buckle down and save.
Here’s some common millennial/20something saving excuses:
“I’m so young/there’s plenty of time.”
Warren Buffett made 99 percent of his wealth after his 50th birthday. He was able to become one of the world’s richest by understanding the theory of compound interest, or in other words, that investing what you earn combined with what your money earns through interest can make you very wealthy over time. Investing early pays off in the long run.
“If you have savings in your twenties, you’re doing something wrong”
This excuse might as well be called “Why I will never get married because I don’t respect myself enough to plan for the future.” That article has 73,000 shares. These 73,000 people (assuming they weren’t bashing the article) should be given their own financially-irresponsible-island where they can all go live away from the rest of us — I vote Antarctica.
So let’s be clear: If you have savings in your twenties, you’re doing something right. If you haven’t start yet, today is the perfect day to do so.
“I’ll start tomorrow…just need to buy X, Y, or Z first”
I get it — we all procrastinate. Sign up for Mint right now. It’s literally so simple and it will track all of your income/expenses for you. I go over this advice later, but this is so simple and so important that even procrastinators could set it up in the next 10 minutes. Download the app for your phone. If you’re spending too much in certain areas, (e.g. $100+/month on brunch) it’ll tell you!
In part two of this article, you’ll get a tips and tricks on how to properly budget to kick the excuses to the side.