continued from Part 1: Five Financial Habits You Need to Master Before 30!
3. DO NOT “live like there’s no tomorrow”
People say this all the time and it causes many financial issues. Living like there’s no tomorrow often causes overspending and an excess of unnecessary debt. This concept is most often associated with travel. For example, college students often want to go on trips with friends while they’re young and looking for adventure. This may lead to the misuse of student loans or credit card debt.
We all know banks give out credit cards to students way too easily. The truth is that for the majority of people, there is a tomorrow. Make plans to travel and actually execute them when the time is right. Do research to find the right prices and commit to a trip when you are able to save the money and pay for it without causing debt.
4. Do more fun things by building a budget
This is talked about so much, but people rarely do it, and an even smaller amount of people stick to it. The word budget can be cringe worthy, just like the word diet. People don’t associate positive things with the word. It seems constricting and people think it limits your fun. This is the opposite of true! Being on a budget actually allows you to do more!
For example, making a weekly budget where you withdraw cash for groceries, gas, spending money, etc, actually prevents you from running out of money before your next payday. If you segment your money by week, you will guarantee yourself money in week two. Therefore, if your friends want to go see a movie in week two, you’ll still have money because you segmented it. As you can see, you’re not restricted; you’re just being smart.
5. Don’t be ashamed to live within your means
There are always going to be people who make more money. They could be colleagues and even close friends. These people may want to do more, spend more, etc, but you have to make sure you live within your means. There is no shame in understanding that you make a certain amount and therefore only spend within said amount.
One good thing to remember is, the people who make more money than you, they had to start somewhere too. They didn’t just magically come into a lot of money. Many of them had to earn it. They did so by working hard, being smart, and living within their mean.
At the end of the day, developing strong financial habits early on will set you up for success in the future. These habits will serve as the building blocks for other financial decisions going forward. As you get into your 30s you’ll have more financial responsibilities, and you’ll need to be prepared for said responsibilities.
To help you adopt these habits and really stick to them, share this article with your friends. As a group, you can develop strong habits and therefore get to take those amazing group trips you’ve always talked about taking, but you’ll do it the smart way!
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