Managing money in your twenties can feel like a constant balancing act. When you first become financially independent, you have to learn how to juggle paying for bills, saving for future goals and spending on the things you want and the activities you love!
By the time the month is over, you may find yourself wondering where your money went. We've all been there!
The key to getting your finances on track is to create a budget and stick to it. Budgeting is easier than you might think, and it definitely doesn't have to limit your fun. A budget is simply a spending plan that gives you more flexibility to enjoy your money — and less to worry about!
What's the best way to budget in your twenties? We have a few tips to help you get started:
First things first: it's important to know where you stand with your finances.
Now that you know how your money is coming in and going out each month, you can create a spending plan to fit your lifestyle and goals.
The 50/30/20 budget works for many twenty-year old's because it's not too strict or structured. Plus, you can always adjust the percentages for your needs and goals.
Once you have a budget in place, make it easier to manage your money by automating as much as possible.
Remember, the purpose of a budget isn't to drain all fun from your lifestyle. While you may need to cut back in certain areas to reach a savings or debt payoff goal, restricting your spending too much can actually do more harm than good!
Including some guilt-free “fun money" in your budget lets you stick to your goals without feeling deprived. It will give you the flexibility you need to stay motivated and keep up the great work!
Whether you're new to budgeting or just want to feel more confident in your money management skills, WPCU is here for you!
We make it easy with resources to help you spend and manage your money wisely every day, including budgeting worksheets and spreadsheets, spending tips, and digital tools like Money Management. We also offer financial education workshops and seminars throughout the year — be sure to check out our upcoming events.
Get started today! Visit our online Education Center or stop by your local Member Center and talk to a Financial Coach about how to create or fine-tune your budget.