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Adulting Responsively: Steps to Handling Money for Young Adults

 

As you graduate from college and begin life on your own as a working professional, you’ll quickly learn that life can be pretty challenging to manage. Rent, car notes, gas and groceries are important enough to set aside money for. Sure, it’d be nice to blow your whole paycheck at the mall, but being homeless isn’t a good enough trade-off. Thankfully, no matter what your income is, there is a way to enjoy the finer things in life and take care of your financial responsibilities.

Create a Budget and Stick to it

When people tell you to live within your means, they forget to say that you get to determine what your means are and what’s most important to spend money on. Creating a budget will help you navigate what you need to spend money on and what you’d like to include as well. After your financial responsibilities are taken care of, whatever is left over can be handled in a way that makes you happiest. Just make sure you stick to your budget so you’re not left at the end of the month in the red.

Use Cash

For many people, it’s really easy to needlessly pull out the debit card and swipe. When you swipe a card, it doesn’t really feel like you’re parting with money. In order to keep yourself more responsible, consider using cash more for daily purchases. It’ll help keep you accountable and informed.

Use Online and Mobile Banking Systems

Most banks have mobile apps and online banking systems to help you stay on track of how much money you have and where it’s going. Some banks, like TruPartner Credit Union, are entirely online. There are times when you’ll need to dispute a purchase or transaction. Staying informed of your banking history will help you remain accountable. It’s also good to use these systems so you can avoid unnecessary overdraft fees.

Pay Yourself First

Many young people make the mistake of putting off intentional saving habits for when they’re older. As a young person in your twenties, it’s imperative to begin the saving process now. With each paycheck, it’s a good idea to take a certain percentage out and set aside for savings. Many people practice the 10% savings rule. Put it in an account that you can’t easily access for everyday purchases. Building a strong savings account will greatly benefit your future and protect you from financial ruin.

Create Financial Goals

Having financial goals will help you stick to a budget during those times when you’d prefer to completely blow it. Whether it’s saving for early retirement, buying a house, or saving up for a dream vacation, having financial goals will help you maintain consistency in the long run.

Being an adult doesn’t have to be a never-ending cycle of debt and poverty. Handle your money well and you’ll be able to enjoy more of it.

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