If you make decent money and aren’t sure where it’s all going, you may need some help with managing your money. This is a useful skill that will come in handy as you grow older and have (hopefully) more money to manage. Get into these practices now so they become second nature to you.
Make a Budget
Create a budget and stick to it. Write down all of your expenses either on a weekly or a monthly basis, and how much each item or area costs. Don’t forget to include cell phone plans, eating out, clothing purchases, gas (if you drive), entertainment, and pocket money for incidentals. If the totals don’t add up to your weekly or monthly income, you may need to cut back in a few areas. If you have more money coming in, you may be able to spend more in a few areas. Make sure it’s a budget you can live with, and make sure something is “in the budget” before you buy it.
Keep Track of Purchases
This is perhaps the single most important step one can take in getting spending under control. Often, people spend more money than they realize throughout the course of a day. A few dollars here and a few dollars there can really add up. Carry a small notebook with you and record all of your purchases for a week. Be sure to write down the date, what you bought, and the amount spent. At the end of the week, review your purchases. You might be surprised to find that you spent thirty dollars on coffee or convenience store food.