Last year I got my first job, and it's only part-time, but the very little money I made seemed a lot to me. I would only get money on holidays and on my birthday, but receiving my own paychecks made me happy. I bought many things on impulse with the money I earned.
Now, I am over that phase and discovered the power of budgeting, investing, and tracking. I know there are different ways to allocate your money, but so far budgeting has been working well for me. I tested out budgeting one month and then not budgeting another.
In the month I budgeted I actually had a lot of money than I would have. I am a frequent shopper in Ulta and it was nice going in the store with the money I had budgeted than just spending all the money I had in my checking account.
The month I did not have any money was the month I would spend all my money the week I got it on random things I wanted but didn't need. Essentially, budgeting stopped my big buying impulse.
Another habit I am incorporating is waiting to buy something right away. For example, I am a frequent browser on Amazon and when I find something I want or need then I add it to a wish list. I wait a week or two. If the item I added is still on my mind I then further decided if it's actually a need or a want. From there, I trust my judgment. I also still live with my parents, and so they fulfill what I need like food or hygiene products.
Recently, I have not been putting money in my "emergency fund" since it's depreciating, instead, I invest with it on stocks or crypto. Don't get me wrong, I still have money in there, but I don't withdraw or deposit anything in it.
Thank you for sharing your growth in financial management ^_^
ReplyDeleteYes, getting one's own very first paycheck is a momentous milestone!
Excellent practice of having an emergency fund :-)
Restraining impulse purchasing is definitely a challenge these days...our whole environment is practically set up to encourage impulse buys in a myriad of ways, both subtle and not.
ReplyDeleteIt takes vigilance to exercise self-control in that respect, when your surroundings are designed to convince you to do just the opposite.
It's really difficult trying to control self-indulgence! It can be so fun and rewarding to buy so many things, but as with most things balance is most important.
ReplyDeleteHaving an emergency fund is so important.
ReplyDeleteManaging your finances takes discipline. glad you are figuring this out early. This will be even more beneficial when you leave the nest.
ReplyDeleteBuilding credit is good, will help when buying a home. Just make sure you live within your means. In the United States it's easy to get caught up in debt.
ReplyDeleteAlways put money into savings. Even if it's $10-$50. It's okay. Just continue to try and save money and you'll be able to get it!
ReplyDeleteI wish I had a clue about managing money when I got my first job. I literally would spend every last dime. Though I am much better with my money now, I let my wife handle the budgeting and bills because I am pretty forgetful. Like many people above have said, it is always good to put something in your savings even if it is $10.
ReplyDeleteSmart move, crypto will be the future, once a decentralized market is invented of course and it's supposedly in the works now.
ReplyDeleteYour story bring back memories of when I got my first paycheck. I couldn't stop smiling so I know the feeling. I admire the way you go about managing your money also. Keep it up.
ReplyDeleteI remember when I got my first job, I felt so independant after that.
ReplyDeleteYou should also start looking into a Roth IRA.
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