Maybe you get an allowance or earn a paycheck from an after-school job. Or maybe you rely on your parents for spending money. However you get your money, just about everybody wants more of it.
Most of us could do a better job managing what we do have. So if you’re short of cash just a day or two after payday, check out these tips for becoming money smart.
Where Did It Go?
For a couple of weeks or even a month, save your receipts and jot down what you buy and how
much you spend. The results may surprise you. You can see where all your money is going and then make changes in your spending habits. Cutting back on things you don’t need can help you save for the things you do need and really want.
Goal-setting
Think about a big-ticket item you want. Is it a car? A dress or tuxedo rental for prom? Or what about a big end-of-the-year trip? Setting a goal can help you make it happen. It can also help you resist spending on unnecessary things like fast-food lunches or caramel-mocha lattes.
Saving
It doesn’t have to be a lot, but the point is to save something. How hard would it be to save just $5 from every paycheck? Or if you get $50 for your birthday, maybe you could save $15 and spend $35. While it may be easy just to stash your cash in your piggy bank, a bank account is a safer place. It won’t be as easy to get to because you’ll have to go to an ATM or inside the bank to make a withdrawal. Most banks offer savings accounts for teens that don’t require a minimum balance, and some even pay interest to help you increase your money.
Budgeting Basics
Once you’ve set aside something for savings, think about how you’ll use the rest of your money. A great way to do this is to create a budget — a plan for the money you take in (income) and items you expect to pay out (expenses) for a specific period of time. Record your budget in a notebook.
Try creating a monthly budget first. Write your total income for the month at the top of your budget. Next, list your fixed expenses — what you pay regularly or see as necessities, such as your car payment, insurance or cell phone bill.
Then, list your variable expenses — the expenses that “vary” or that you have more control over such as the clothes you buy or what you eat for lunch. Next add fixed and variable expenses together to get your total expenses.
Subtract your total expenses from your income. What’s left over is your spending money. You can use your spending money for fun things like going to concerts or going out to eat with friends.
Smart Spending
Want to know how to stretch your spending money as far as possible?
1) Plan ahead. Set aside a little money each week for car repairs, yearbook purchases or school trips.
2) Avoid buying on impulse. When you’re tempted to buy something, give yourself at least a day to think it over.
3) Comparison-shop to find the best prices. But don’t always go with the cheapest item; sometimes it pays to spend a little more on a better quality item that will last longer.
4) Take your lunch to school along with snacks to munch on in between classes and during your break at work. This will help you stay clear of vending machines.
5) Find free and cheap things to do for entertainment.
6) Keep track of your spending habits and compare them to your budget to see where you need to make changes.
http://www.floridanext.com/money/article_view.asp?id=615
–Ashley Cisneros
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Ashley Cisneros is a co-founder of Chatter Buzz Media, an Orlando Internet marketing firm that helps companies and organizations engage with their target markets through inbound marketing via the Internet. Chatter Buzz Media, which won the Social Madness competition for the Orlando small business market, is a full-service digital marketing firm specializing in website design, search engine optimization (SEO), social media marketing and content creation. Prior to founding Chatter Buzz, Ashley worked as a newspaper reporter, magazine editor, technical writer, marketing manager, public relations practitioner and freelance journalist. To see Ashley’s content writing, visit www.ashleycisneros.com. You can also reach Ashley on her Google profile.
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