Millennials are typically those who are born between 1982-2004 and are said to be the generation with the most consumer debt. Student loans and credit card balances lead the categories of debts owed. Ironically, many of these millennials have great jobs and own successful businesses but are having problems with their personal finances and paying off debt.
Budgets are thought to be hard to start and maintain but in reality, if they are executed properly, they can positively change your financial condition. The purpose of budgeting is to simply plan, coordinate, and dictate how your money and other resources will be used. Utilizing this tool can motivate one to cut unnecessary spending, pay down debt and increase saving. With proper budgeting, limited resources can be managed efficiently.
Before starting a budget, a daily spending tracker should be in effect for 30 days.This tracker will accurately portray your spending habits and will assist you in the future with any cutbacks that need to be made. Finding a tracker designed by a graphic designer or an app may be ideal. Each individual can determine if they prefer the pen and paper or app method. One app that I recommend is Wally because it can be used for a spending tracker and a budget. It invites users to input purchases and income and keeps track on a lively graphic interface. Printable daily spending trackers and budgets can also be found by conducting a simple Google or Pinterest search.
Below are some realistic tips to get you started:
- Start today
- Utilize a spending tracker for 30 days before implementing the budget
- Work on your budget consistently
- Make cuts accordingly
- Create a debt payoff plan
- Automate your bills and savings