It’s something they didn’t teach you in high school when you were busy taking Calculus 101. Applied math was all about triangles and geometric equations. If you had the pleasure of taking the “dumb” math, you might have skimmed over how to write a check. Yep, school is worth it, my friends.
Everything I have learnt about money has either been self-taught with the help of the internet, or learnt by making mistakes. Hopefully, this post will get you off your high horse thinking you can go paycheck to paycheck forever – because if there’s one thing I have learned, eventually – life will catch up to you and kick you in the butt.
Because while you make enough to cover your expenses now, that could very well change.
You might be a high school student in their first job – all you have to pay for is your cell phone and your car. Or, if you’re older and haven’t learnt yet – you may be thinking you always have enough leftover for your coffee, so you’re doing pretty good. Let me tell you this: you’re going to get kicked.
While your job may cover your bills, having a solid emergency fund just in case something DOES (and it will) go wrong is your first step to financial success. Aim for at least $1000 and keep it somewhere you can’t get to it easily, but it’s still accessible in case of emergency.
Peace of mind and less stress always wins.
Have you ever been in that spot where you’re $2 short on rent for the month? Better yet, didn’t have enough gas to fill up your car to go to work? Having a budget means always knowing where your money is going, planning for the unexpected, and having enough money to cover your expenses. If you’re not budgeting, I can imagine you’re extremely stressed out about money all the time.
Your Goals and aspirations in the future may change.
So you’re a 16 year old server at a local restaurant (let’s get real – it’s Mc Donald’s). You’ve decided not to go to college, but then 10 years later – you realize you’ve made a horrible mistake and now, at 26 you decide to get a degree in finance (or ethics, whatever.)
How can you afford to go to college? Did you save anything from your McDonalds career? I bet you didn’t. Life has a way of evolving when you least expect it, and that my friends, is why you need to start budgeting your money.