It does not matter if you are a broke college student or a CEO of a company–you need to be money smart. Learning how to control your cash flow is one of the most central lessons in life. No matter what major you intend to pursue or what career you choose, becoming wise with money is vital. It is a good time to start learning and familiarizing yourself with the basics while you are in that time of being both independent and still holding on the family for support. I have consulted Bloomberg and The New York Times to have establish what the average person should know when it concerns money.
All anyone needs to know is a basic understanding of the importance of balancing money to spend and save. Here are some tips to help you manage your money on any type of budget:
Put your money in the bank. Whether you have a part time job on campus, a side-job of babysitting for a neighbor or a paid internship, any time is a good time for a checking account. Having one will help you be aware of where your earnings are going. Checking accounts allow you to put money into one account from which you can write checks or withdraw cash at any time, making it convenient to pay for items according to Bloomberg.
Stash most of your cash and paychecks away for safekeeping. A good rule of thumb is to keep out about ten percent of your income. The New York Times reported a savings account is different from a checking account because it earns interest over time and cannot be used directly as money; a savings account’s goal is to help individuals to save money.
In addition, savings accounts are a great place to hold money that you want to have to save up for that new car, a future apartment or a summer vacation. Shop smarter. Bloomberg suggest that the next time you are browsing at the mall or going to the grocery store, remember that studies have proven that if you hold something in your possession for thirty seconds or longer, you have more likely to buy it. Avoid lugging around every single thing you want; instead, get the items that you need and then if you have a bit of extra money, you can either buying something you usually do not get or save it for another day of groceries or errands.
Also, make sure to look for deals, sales, and coupons to save enough more money; by doing so, more money can end up staying in your wallet and account than expected. For all those who are tech-savvy, the New York Times has found some apps that you can download on your smartphones that can help with money basics.
For everything from checking accounts to withdrawing money, Mint can keep track of your spending and even set up alerts so you know when you have to repay the money borrowed from your best friend last weekend, according to The New York Times.
For savings, Daily Budget allows you to put in how much money you expect each week and it tells you exactly how you should be saving. This app also lets you to create tabs that will help you save for expensive purchases. Another app that The New York Times reported as being a money-smart app is for the social life called Splitwise; it calculates exactly how much each person owes when you split a check to your favorite restaurant or for an Uber ride to go visit downtown.