Show me the money.

Finances have been weighing on my mind extremely heavily since graduating with my Masters. There are so many things I want to save for, so many places I want to explore, so many things I want to give to my partner, but in wanting to do so with a part-time salary. But patience (don’t take this from me) is a virtue. If you’re in your twenties and thirties, and are in some kind of similar situation like me, here are the best tips I could give you- From one novice, to another.

  • Loans.
    • Figure out how much you make on a month to month basis, and then find out what 15-20% of that is. This is the MOST you should be paying back on your loans.
    • ex. If you make 40,000$ a year, monthly payments to loans should not exceed 600$ a month
    • You earn more interest saving on retirement in the long run, putting your money away now, then what the continual interest will be if you don’t pay your loans off fully in 10 years.
  • Emergency fund.
    • Find out the very smallest amount of money you’d need to live off of in the event you lost your job and you couldn’t afford to live where you are living. Open up another savings account where you can store this money away so you don’t touch it.
    • Your emergency fund should be separate from your checking and savings
    • There should be enough in here to make you live for at least 1-2 months (Although, eventually it should be enough to live without a job for 6 months.
  • Your checking account.
    • The sole amount of money that should be in there is just the same amount you would make on a month’s worth of income. If you see your checking overflowing to an amount that’s more than that, then transfer the excess amount to your savings account
    • If your checking account doesn’t have the amount of one-month’s rent, stop spending money until it goes back up.
  • Stop spending money out on frivolous things.
    • If you feel the need to drink, do so at home, and not on a 12$ margarita in SoHo.
    • Convenience does not outweigh the cost of spending money out.
    • Screw material things. They’ll be outdated in a few months, anyway.

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