Now that you are earning money you need to learn how to spend it wisely.
Everyone, whether you live at home with parents, share a place with others, or have your own apartment, need to plan how to use their money wisely and stay out of financial trouble.
Your first expenses are the necessities,
things that you must buy each month to live and stay safe. Your
necessities will include things like food, medicine, rent,
utilities like electric and water, telephone, and any other required
services that you need to be safe and well. Some people consider
their donation to their church in this category too. List out
how much each of these costs for each in a month, one at a time.
Don't forget any costs you have for lunches at work, and things
you buy cash each week. Try to include 10% of your income to put
into savings each week.
Next list out the things that are nice to have,
and are regular monthly bills, like cable TV, internet service,
cell phones, magazine subscriptions, etc. Anything that you pay
monthly, but do not absolutely need to survive goes in this list.
Finally, list out the fun things you like to
do that come up each month, things like shows, special dinners
out, movies, etc.
Add up the amounts for each column separately. The first column is the things you MUST pay on time, every month. While you could cancel television service, everyone must eat, have a place to sleep, and keep the water and electricity on to be safe and comfortable.
The second list is items that could be expendable if your money was not sufficient to cover their costs.
The third list is items which you do not need, and could eliminate completely.
Compare the total amount of all three columns to your income for a month. If you make more than this list you are in pretty good shape, and the remainder should be saved!
IF you want to know more go to the LINKS page, and to the section titled "MONEY"
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 Saving
& Using Money |
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