Take inventory – and set goals
How much money are you making (after taxes)? What are your expenses? Is there anything unnecessary in those expenses? How do your expenses compare to how much money you have coming in every month? You need to ask yourself these questions — and more — to truly get started on the road to managing your money like an adult.
Use this information to set up a realistic spending plan. But don’t stop there. Set goals. Setting goals helps you to stay focused on saving and gives meaning to the dollars you put away (or to the luxuries you skip) to make your goal a reality.
Some goals will take longer to achieve than others, which is why it’s good to set some short-term goals. If you are only focusing on saving for events far in the future, like retirement, your long-term goals can begin to feel overwhelming. Your short-term goals can help you stay on track toward achieving goals that are further down the road.
