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i wanna learn how to be independent
i wanna own something. #accounting
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Lourdes’s Answer
I also agree with Matthew, budgeting is very important when beginning to become independent. There are many apps, such as Mint, that focuses on budgeting and they help see how much discretionary income is left over after living expenses are taken out. If you prefer to not use an app, a simple spreadsheet is a great tool as well to get the same results. As others have mentioned, at least 10% of every paycheck should go into savings and if you can afford to save more than 10%, the better.
Another thing I'll add is building credit early on, especially when you just turn 18. If you plan to buy a new car, a house, or rent an apartment, your credit score is essential. If you're barely starting, I would highly recommend Discover secured credit card to begin. If you're a college student, you can apply for the student credit card which will help you increase your credit score and earn rewards for good grades.
Goodluck!
Another thing I'll add is building credit early on, especially when you just turn 18. If you plan to buy a new car, a house, or rent an apartment, your credit score is essential. If you're barely starting, I would highly recommend Discover secured credit card to begin. If you're a college student, you can apply for the student credit card which will help you increase your credit score and earn rewards for good grades.
Goodluck!
Updated
Kristina’s Answer
Financial independence is a huge factor in overall independence. As Matthew described, budgeting is key. If your goal is to own something, you will need to start saving for it. I personally budget in a spreadsheet. I calculate my expenses vs my income, then I use some of the remaining money for spending money, and I put the rest into savings. If your goal is to own something, whether it is a car, house, business, or anything else, I recommend looking into how much it will cost as well as how much you can realistically save per month. From there you can set a goal date of when you might be able to make that purchase. I find that having those goals helps me stay on track and actually stick to my savings plan. If you have a really big goal that will take a long time to achieve, it might be helpful to break it up into smaller goals along the way so that it does not seem so distant. I also recommend doing research before choosing to pursue a specific goal. This may help you learn more of what it entails and help you prepare for what is to come. By researching your goals and having a clear plan, you will be on a great path towards achievement.
Updated
Matthew’s Answer
Build a budget that lists how much money you earn from your work. Create a list of your monthly expenses and at the TOP of the list and the FIRST thing you pay every month is SAVINGS. Try to make this 10% of your earnings. This is very, very hard to do. NEVER use this savings for living expenses. Only use your SAVINGS for investment in other assets that will create value or generate more income for you.
Your biggest asset when you are young is your time and you will trade your time for money when you get a job. The amount you are paid is based on your talent and skills. These can be improved through practice and education. That is why it is so important to continue to to learn and get formal education throughout your life. It is directly connected to how much your time is worth and therefore how much you will be paid when you sell your time to your employer.
Wealth is built through discipline and self-control and most people are not very good at it. But it is a skill to be learned and practiced. It can be mastered if you want it bad enough.
MY BUDGET
Income
Take home pay check $1,000
Expenses
SAVINGS @ 10% ($100)
Budget to live on $900
If you can do this starting at 18 years old, you will be a millionaire by the time that you are 40.
Try it. You have nothing to lose and EVERYTHING to gain.
Your biggest asset when you are young is your time and you will trade your time for money when you get a job. The amount you are paid is based on your talent and skills. These can be improved through practice and education. That is why it is so important to continue to to learn and get formal education throughout your life. It is directly connected to how much your time is worth and therefore how much you will be paid when you sell your time to your employer.
Wealth is built through discipline and self-control and most people are not very good at it. But it is a skill to be learned and practiced. It can be mastered if you want it bad enough.
MY BUDGET
Income
Take home pay check $1,000
Expenses
SAVINGS @ 10% ($100)
Budget to live on $900
If you can do this starting at 18 years old, you will be a millionaire by the time that you are 40.
Try it. You have nothing to lose and EVERYTHING to gain.
Updated
Dina’s Answer
Hi,
Coming from a woman that moved to different countries after collage for education and work, I can give you few advices that might be helpful:
1. Review what you're spending money on each month (e.g., dining out, movies, even that daily cup of coffee can add up.). Ask yourself, "Where can I cut back?" Reducing expenses helps free up cash to pay off debts, save and invest. If reducing expenses isn't enough to break the cycle, consider finding an additional source of income – even for a short time. A part-time job, for example, can help get your finances back on track and may even help you get ahead.
2. Start saving immediately and set big financial goals
3. Get to know yourself better, check in with yourself. Take some alone time and reconnect with something that you love.
4. Focus on things you admire about yourself and Learn to give yourself emotional support
5. Set some career goal, Networking contributes to your social well-being, leads to the exchange of ideas and helps you meet people at all professional levels and boosts your professional confidence.
6. Don't by shy to ask for help, Steven Handel once said supportive and helpful friend can make you a better person at the end of the day. And that's something to embrace, not something to be ashamed about.
Best of luck,
Coming from a woman that moved to different countries after collage for education and work, I can give you few advices that might be helpful:
1. Review what you're spending money on each month (e.g., dining out, movies, even that daily cup of coffee can add up.). Ask yourself, "Where can I cut back?" Reducing expenses helps free up cash to pay off debts, save and invest. If reducing expenses isn't enough to break the cycle, consider finding an additional source of income – even for a short time. A part-time job, for example, can help get your finances back on track and may even help you get ahead.
2. Start saving immediately and set big financial goals
3. Get to know yourself better, check in with yourself. Take some alone time and reconnect with something that you love.
4. Focus on things you admire about yourself and Learn to give yourself emotional support
5. Set some career goal, Networking contributes to your social well-being, leads to the exchange of ideas and helps you meet people at all professional levels and boosts your professional confidence.
6. Don't by shy to ask for help, Steven Handel once said supportive and helpful friend can make you a better person at the end of the day. And that's something to embrace, not something to be ashamed about.
Best of luck,
Updated
Celeste’s Answer
Matthew gave a great answer. Discipline is the key. Know how much money you make; save 10% (at least); know where and what you are spending on. Meanwhile, do research on 'what to own'. Is it a home? Is it a business? While you are working and saving, start a plan for what you want to own and how you will afford it when you get it. Watch for opportunities. Talk to people about home-ownership or business-ownership.
Good luck!
Good luck!