How to Budget for the Single Girl
- 1). Outline a budget. Budgeting does not have to include buying fancy software while pouring over receipts with an accountant. Simply grab a piece of paper, a pen and a calculator. List how much you earn a month, and how much you spend on necessary items like bills, rent and other mandatory expenses. Subtract your expenses from your income, and this dollar amount will give you an overview of your extra cash available.
Budgeting also includes tracking daily expenses. USAToday recommends writing down expenditures. Though tedious, writing can illuminate unknown costly habits like a penchant for buying premium orange juice when a generic brand could suffice. Keep a diary of purchases over the course of a month and identify ways to improve spending. - 2). Place money into savings. This concept, as explained in getrichslowly.org, is known as "paying yourself first." This method emphasizes savings as a priority. Use your savings account as an emergency fund, tapping into it only when absolutely necessary. Unemployment or medical disasters are good examples of emergencies.
From your budget, determine the amount of savings you wish to set aside. If you have $200 left over after all mandatory expenses, consider placing $100 of it into savings.
Or, determine a percent of your paycheck to place into savings. If you earn $800 every paycheck then save 20 percent or, $160.
Free savings accounts are available from the same financial institution as your checking account. Such banks include Wells Fargo and Bank of America. Investopedia suggests other high-interest savings accounts, like those from ING which add 3 percent interest to your money, allowing it to grow over time. - 3). Determine needs vs wants. Needs (like books for school), should always come before wants (like that beautiful ring). Wanting nice, expensive things is perfectly understandable. After you pay all bills, buy necessary items and put money into savings, allocate the additional money however you wish. If you stick with your budget, do not feel guilty about purchases.
Do not sacrifice; prioritize instead. If drinking Starbucks every day is enjoyable, then budgeting does not require ceasing this activity. Instead, be willing to give up outings to restaurants and movies. - 4). Look for discounts. Young people, especially students, are frequently offered coupons and discounts. Grab publications and look for coupons from restaurants or grocery stores. Hold off on purchasing basic items like shampoo, and check the Sunday paper for coupons. Local magazines frequently advertise free sneak peaks of movies, which could save you movie admissions in addition to being the first among your friends to see the latest blockbusters.
Scavenge dollar stores and thrift stores. Finding a $4 Banana Republic skirt is not uncommon when shopping at thrift stores. Scour discount stores for gift items like wrapping paper, cards, bows and holiday decorations. - 5). Do not be afraid to admit when you are broke. Offer equally fun, yet cheaper, alternatives to expensive outings with friends. If a friend volunteers a fun (yet expensive) activity like pedicures, suggest a movie and beauty night at home instead.
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