Budgeting 202: Really getting into it

Now that you have the basics of budgeting down, let’s get into the nitty-gritty and really start saving.

So you are feeling more confident in your budgeting skills, let’s step it up then. 

Choosing to be content 

You don’t need to show off, it’s ok we’re all students here. I know you want to look cool on insta, but you don’t need to buy a Gucci belt to do that. Instead, understand that this is a stepping stone in the path of your life. Be content with what you have and don’t overstretch yourself financially.

It takes hard work to earn money, so split some pitchers or have the Wednesday night specials on margaritas. Just be smart about it, don’t spend more than you need to. This obviously is a difficult mindset to attain, but don’t worry about what others think and just focus on your own financial health and future. Easy right?

Don’t buy what you can’t afford

This is a similar vein of being content, do not over-extend yourself financially. Credit cards can be great assets to building credit scores or quick cash if you are really in a pinch. But, do not abuse this. The easiest way to pay off your debt is to not increase your debt load. Duh. If you don’t have the cash to buy what you are looking for, don’t substitute credit for that. Ideally, you should be using a credit card when you have the cash set aside to immediately pay it off. Credit card debt can easily start to stack up, but it’s not free money.

When you do need to buy things, payd can help you save while spending through the round-up program. So, when you do buy something it puts the spare change towards your debt. You are going to have to buy things anyway, why not save when you are making those essential purchases.

Investing

A great way to save is investing, obviously, this can be daunting but with some basics, you will be golden. You don’t need to go all Wolf of Wallstreet to make money in stocks, just put your extra cash in ETFs and Mutual Funds and wait. These are managed portfolios and funds that take the hard work out of investing. Investing in these managed stocks allows you to grow your money a little more than you might expect from a base savings account. Don’t forget, the long-term goals are your best friend in this scenario, so do not sell unless you have to. 

Socially responsible investing and giving

If you want to take it a step further, invest in socially responsible companies which are doing good for the environment, groups of people or anything along those lines. Electric vehicles and different types of solar-based companies exist, many of whom have great stocks as well. Do the research and invest in yourself and the world around you.

Lastly, if you are feeling extra generous with your leftover money, why not donate it? You are helping a good cause and if you can keep track of it all, it can go towards your tax refund when you file your yearly taxes.

 

Congratulations on graduating to the next level in budgeting. You are just getting closer and closer to your goals.