If you’re having trouble setting and sticking to a budget, you’re certainly not alone. In fact, according to a 2017 online survey commissioned by NerdWallet and conducted by Harris Poll, 32% of Americans say they just make ends meet. Of course, depending on where you’re at in your career, this issue can grow worse and worse until you can properly manage your budget. Here are just a few effective strategies for managing your budget after getting your first job.
Minimize Unnecessary Expenses
After getting your first job, it can be tempting to blow that first big paycheck on a new wardrobe, a security deposit for an apartment that’s a bit too expensive, or even a down payment for a new vehicle. Instead, keep all of these expenses as low as possible until you start to build your savings up a bit more. If you can, live with roommates to reduce rent costs, look into income-based student loan repayment plans, and try to avoid the temptation of major purchases. Talk to a financial credit advisor for specific ways to reduce unnecessary expenses.
Consider The 50-30-20 Plan
If you’re still unsure about how much money you’re able to comfortably spend and/or save, consider the 50-30-20 approach. Allot 50% of your income to necessary bills and expenses like rent and groceries, 30% is spendable income designated to social activities and other forms of enjoyment, and the remaining 20% goes toward a long-term savings account as a way to invest in your future. This formula is a tried-and-true method that allows you to live comfortably while saving for your future as well.
Take Advantage Of Company Benefits
After you land a full time job, make sure to take the time you need to look over the benefits that come with it. Some companies offer a significant number of benefits that, when combined, can help you save serious cash flow in the long term. For example, some companies have health plans that reimburse subscribers for gym memberships. Leave no stone unturned in your search for company benefits and take full advantage of each and every one that applies to you.
Ultimately, being aware of these budgeting tips can help you slowly build your savings while living comfortably at the same time. Of course, for a more customized budgeting plan, financial counseling is a great resource to take advantage of as well. For more information about womens financial counseling, contact Own Your Destiny Coaching.