Budgeting!

Unless you're lucky, chances are you don't have a lot of extra money. You are the bottom wrung of your job, and your pay reflects this. You are on your own for the first time, and don't have your parents to bail you out. This blog will help you in your first years on your own, showing you how to make smart financial decisions, and how to save a few dollars here and there. 

• One of the most important things is for you to save your money from one month to spend in the next month. Basically, any money you bring in during January, put into a savings account and don't spend until February. This way you will know exactly how much you have to spend, rather than guesstimating, and possibly coming up short.
  
• Create a budget!  This will show you exactly how much of your money is necessary for bills, and how much you have to spend on groceries, clothing and entertainment. Your budget should include your set expenses such as rent and utilities first. Then you should add a guesstimation of the rest of your fluctuating expenses, such as gas and food. The remainder is what you have for entertainment: clothing, movies, bar tabs... The Internet is full of helpful websites with budgets. A great one is http://cgi.money.cnn.com/tools/instantbudget/instantbudget_101.jsp. This website has you fill out a 7 question analysis that allows you to see how your peers spend their money, and then has you fill out a column of your own spending. Another great website is http://financialplan.about.com/cs/budgeting/l/blbudget.htm. This one is simpler. It is n easy worksheet that can be printed and filled out. 
  
• Create a spending registrar for your checking account and write down every penny that goes in and out of that account. This is just a little booklet about the size of a check book. Your bank teller will be happy to give you a few registrars. Especially when you pay bills by check, some things may not go through for a week or two, enough time to forget that one bill in the five that you paid.
• Get a credit card! But before you go out and get a $20,000 credit card limit and max it out, read this paragraph. Unless you are one of those one in 100 very organized people, it is nearly impossible to record every transaction you make. This is how a credit card with a very small limit will help. The best way would be to get one through your bank. They usually have the lowest rates, but are also the hardest to get. A website that compares credit cards is www.creditcards.com. This is a website that allows you to search for a credit card by what benefits you want, your credit, the issuer... Once you get a card, adjust the limit so that it reflects the amount you would be able to pay off in a single month. You should put your groceries, entertainment, clothing, and other various items on this card. Then every few days pay it off. If you get one through your bank, you should be able to transfer funds online from your checking account to your credit card at no additional charge. Record this amount that you transfer in your registrar. It is much easier to record a few large payments a week than dozens of small transactions. 
• Clip coupons! There are dozens of coupons and sales advertised in the Sunday paper every week. Most newspapers will have an option that involves only Sunday delivery, or you can always buy one. You could also borrow a friends paper once they are done using it. Before you go shopping always look through your coupons and pull the ones you may use. There are also some websites that will give you coupons online: www.coupons.com, www.valpak.com, www.couponcabin.com. 
• Speak with your superiors at you job about discount benefits. Many companies have partnered with other companies to offer each other discounts. You may be able to save money on eye exams, cell phone plans, or vacations. All of these are very expensive items that could blow through your budget, but if you get a discount you may be able to save a lot of money.
• Shop at discount stores! Many stores, such as Marshall's and TJ Maxx are able to buy items at a discounted price and pass these savings on to you. Their stock isn't steady, but they constantly have very pricey and luxurious items at greatly discounted prices. I once found a nice Coach bag for about $150 at TJ Maxx. Plato's Closet (www.platoscloset.com) is a great second hand store for young people. Basically, you drop off your gently used clothes and get money back for them, and then you can buy gently used clothes at a discounted price. Just be sure to wash your items before you wear them. 

Budgeting is one of the most important things of living on your own. It is very easy to get in trouble with money because you want to buy certain things. But you have to understand that anything you buy on a credit card, you have to pay back with interest. You should only spend money that you have, and record every penny. Pay your bills as soon as you get them so that you know what you have left. Shop at discount stores, it's the same item, just a better price.