Saving and Budgeting Tips for Young Women Karan Jain October 10, 2022 Money 319 Most women have a lot of expenses that men do not have, such as makeup, clothing, sanitary products, and so much more. Even if these items aren’t a huge part of your monthly expenses, it is still very important to understand how to save each month. Saving is a great way to ensure you’ll be able to buy things you really need or want in the future, and budgeting helps you keep track of how much you are spending versus saving. In the days of online shopping, spending has become incredibly easy. Even when you are out at the store, a simple trip can turn into a hundred-dollar bill pretty quickly. If you are looking to start saving and budgeting, but aren’t sure where to begin, here are some helpful tips and tricks for budgeting like a pro. Wait Before Clicking “Buy” Online shopping can be extremely convenient, but that’s also what makes it dangerous for your bank account. Spending hours scrolling through endless amounts of shoes, kitchen supplies, beauty products, and anything else your heart desires can be difficult to resist. Many women enjoy the activity of browsing and adding things to their cart, but it’s important to know when you need to buy and when you should wait it out. If you are just browsing, and stumble upon an item that you think you absolutely have to have, put it on a wishlist, close the computer, and come back to it in a week. If you still think you cannot live without this item a week later, then maybe consider fitting it into your budget. However, chances are most of the time when you return to the item, you aren’t going to be as in love with it as you were the first time. Over time you’ll find yourself saving a ton of money just by putting more consideration into your online purchases. Be Smart About Credit A commonly overlooked aspect of budgeting and saving money is creating a good credit score. Building good credit is going to save you a lot of headaches, and money, in the long run, so you want to be sure you are paying attention to how you spend. If you have a credit card, you’ll want to make sure you can pay the amount you owe each month, so make sure to plan it in your overall budget. Although you can pay the minimum amount without it hurting your credit, the debt can add up quicker than you think, so it’s best to try to pay the full amount as often as you can. You also want to make sure that you make your payments on time. One aspect of your credit score most people don’t realize is how much money you are spending in comparison to your limit each month. In general, it’s best to keep the amount you are spending around 30 percent of your total limit. For example, if your limit is $1,000, you should try to keep the amount you borrow below 300 each month. Don’t Loan Money You Can’t Afford to Lose We all want to help out our friends and family, especially when we know what it’s like to need a little extra help now and then. However, if you are working towards a goal or trying to save more in general, giving money to people even if they say they’ll pay you back can be risky. You might feel bad saying no, but if you couldn’t afford to never see that money again you should think twice about letting someone borrow it. Look Over Your Subscriptions If you have a habit of signing up for subscriptions, whether it’s streaming services, magazines, or monthly products, go through each one to determine how much you really need it. We often sign up for things and lose interest in them quickly, or don’t use them as much as we thought and then forget that we’re still paying for them each month. Check your monthly statement to see what you’re paying for each month and decide whether or not you could afford to let some of them go. For example, if you have Hulu, but spend almost all of your time watching Netflix, maybe consider getting rid of Hulu. Create a Budget, and Follow It Creating a budget is one thing, but actually sticking to it can be a lot harder than it seems, even if you’re saving for something you really want. When you are creating your budget, you want to set realistic goals for yourself, and leave some room for things you enjoy. Start by making a list of all of the things you spend money on and how much you value each one. Then determine your saving goals, and come up with a timeline you think you could get it done in. Once you have determined these factors, you can begin allocating money to each part of your budget. Start with the things you absolutely need to pay for like rent, car payments, groceries, etc. Then decide how much money you want to save each month and how much you want to have leftover for leisure spending. After you have created a budget you think you’ll be able to follow, be strict with yourself about it. Always pay your “needs” first, then what you want to save, and finally anything you want that month. Everything can’t always be perfect, so if you need to spend more one month try to make it up by saving extra the next month. The important thing about budgeting is that you meet your goals by the end. Don’t Spend Money You Don’t Have Letting your credit card carry over for a month until you get paid again can seem simple enough, but once you start it can easily snowball into debt you cannot repay. The last thing you want is to feel trapped in your debt, or forced to file for bankruptcy at a young age. Unless you have an emergency and spending some money you don’t have is absolutely necessary, it is best to only spend the money you have at the moment. You should only be using your credit card when you know you’ll be able to pay it off. Conclusion Having a sufficient amount of savings is an important part of only spending money that you have. This way, if an emergency happens, you have other spending options besides running up your credit card bill. Once you are in a place where you have extra income, you want to be sure you’re setting aside money each paycheck for the future. The purpose of budgeting and saving money is to be able to afford more expensive purchases, but it is also about having a cushion of funding that you can fall back on anytime life doesn’t go exactly as you planned. SHARE THIS POST