The average person between ages 20 and 24 make only $28,000 a YEAR. That’s a hard budget to live off if you have major student loans, a car payment, and rent. Its easily understandable why so many people move back in with their parents after college when you think of that fact.
I make less than $30,000 a year. That means my budget is pretty tight; however I am able to go through my life without stressing over money. The way that I can do this is a few different ways.
- I have cut out all unnecessary expenses. I don’t have Spotify, hulu or even netflix. I don’t even pay for wifi because its cheaper to have an unlimited data plan and use the hotspot than pay for wifi AND a phone. Be creative and ask yourself before you get all those subscriptions. Do I NEED Spotify or could I just listen to that music on YouTube? You’d be surprised at how much you can cut down.
- I pay all my bills as soon as I’M paid. I don’t wait until the due date, I have the money now, why wait? Then when you hit the movies and want to get some snacks, you can buy guilt free because your bills are already handled, and the money that is still in your account is playing money!
- I write out all my expenses at the start of each month. I also do this whenever I get a paycheck. I add my paycheck to the remaining balance in my checking account and get a total. Then I add up all the bills I’m planning on paying with this paycheck. First paycheck typically pays my car payment, car insurance, student loan, electric, credit card minimum payment at least, and my health insurance. Second paycheck pays for rent, savings, and if I have extra, I’m currently throwing it towards my credit card. Once I have those two totals, I subtract my bills from my back account and the number I have is account balance I have to do with as I please. I don’t budget gas into this so this ‘play money’ pays for my gas.
This system may seem crazy, and I suppose it counts as living pay check to paycheck, however it really cuts down on my stress because I prioritize my bills so I know I never am going to get a late fee, or lose something like my car or have my electric shut off.
These are my three tips that I use to make sure I stay under budget and make all my bills. Would you want me to do an example with my own income? Let me know!