How To: Manage your Finances
Even though we are in college, there isn’t a course on how to manage your money.
Learning how to manage your expenses can be challenging, but cnbc.com came up with six financial moves everyone in their 20s should know. However, this will only cover three of the six. For more information, the link will be listed below.
Move 1, create and stick to a budget.
“Creating a budget is an important financial step that can help you get your finances in order and track how much money comes in and out of your bank account every month,” stated CNBC.
They also stated that if you don’t know where to start, there are multiple apps and websites that offer help. After forming a budget, it is also important to use it every day. The more you stick with it, the easier it will become.
Move 2, build a good credit score.
“Establishing a good credit score is key to qualifying for the best financial products, like credit cards and loans,” they stated.
However, for this part to work, you must pay off your loan and/or credit cards each month. Otherwise, you go into debt and your credit score will go down. If you have one, work it into your monthly budget and set a limit for yourself on how much to spend.
Move 3, develop good money habits.
“While you’re in your 20s, consider ways you can build good money habits and be proactive with your finances. Get into the habit of regularly checking your different account balances,” they stated.
Creating a good habit with spending and saving money now will carry itself into your later years. Maybe think about what to spend money on, like buying groceries instead of going out to eat all the time.
The sooner these skills are developed, the more successful you will become.
