Being only 20 I didn’t want anyone to feel annoyed by me giving financial advice. Although I truly disagree that age has ANYTHING to do with being good at something or being “allowed” to give advice. Heads up, this is all my personal advice that works for me. By no means is this the only way or the “right” way. I do have evidence that it works though haha
Okay let’s get into it! P.S. feel free to skip to what you need in this blog!
Your habits make you rich.
Let’s start with the hardest part…putting money away and not touching it. Ya feel me? It’s very important though.
Here’s the why
(EX: car repair, speeding ticket to pay, you get the flu and need to buy medicine)
Some banks like PNC will give you 2 savings accounts, a long-term and short-term. This would be more long-term savings
(EX: buying a place, down deposit on a new car, your wedding, etc.)
(EX: Setting aside money for Christmas, Birthdays, etc.)
How frequently do you want to save money?
Don’t stress yourself! If money is tight, save $5 a week, it really doesn’t matter. It’s what works for you best, any money saved is great! I have a day job other than my businesses so I try to save $50 a week from that income!
I budget ahead 3 months! This means that I am able to look at a spreadsheet (Excel, but a lot of different systems work including a paper system) and see 3 months ahead from present time…
exactly how much…
I update my spreadsheet every. day. I keep my receipts from the day and plug in how much I spent or made so that my spreadsheet matches my bank account total. (It can get overwhelming if you forget to update it) Don’t think that what is plugged in is all you can spend. Things happen and it’s okay to spend money! This budget only SHOWS me what’s going on, it doesn’t tell me what to spend, that’s my choice. But by seeing “okay in 1 month if I were to buy this now then I’ll have X amount in the bank.”
I have 2 bank accounts, business and personal. If I want to spend money on extra things, I either have my business write me a check or I take out cash.
(EX: Let’s say I want to buy a camera that’s 2k. By having my spreadsheet I am able to plug that in, and see how it effects the budget even 3 months ahead! Sometimes we THINK we can’t afford something…but this spreadsheet allows you to see “oh wow this is totally doable.”
Here is my take on this. If you can afford to treat your self a lot? Do it! If money is tight then do it once/twice a month until you can more. I don’t save money for shopping/etc. If I see my spreadsheet and there’s wiggle-room for spending money then I use it 🙂 There is no limit to how much relaxing you deserve. You can’t be successful if you aren’t taking care of yourself!
EX: nails, massages, new clothes, take-out, movies, makeup, hair appointment, etc.
If you’ve paid your bills and saved some money aside like I discussed earlier, then treat ya self!
If you are just starting obviously you need to use money from your personal to get it started! But as you grow and your business grows, there will be months where you aren’t making profit because the money you make should go BACK into the business to help it grow!
EX: When Chicka & Co. started, my first sales weren’t profit. I had to make back the money I spent on many things! Like: printer ($350) website ($110) employees packing ($100-150) etc! But now that I have fed the business, I’m profiting!
EX: 1 Session = $50.00 into savings OR every 5 sessions = $100.00 into savings
the best part? As you see in the example there is no “right way” heck if you wanted to not put away for taxes and just pay whatever you owe when the time comes then so be it! Do what works for YOU. (I just pay whatever I owe, I’m not a big saver lol)
AH! SCARY! right? actually no! I LOVE credit cards! If you hate them, you may be using them wrong. Here’s what I do!
-Just because you don’t need one doesn’t mean you shouldn’t have one.
And some of you might think right now “Don’t need one?? YES you do!” I’m saying this because I know 20 year olds with no credit card. Let’s face it, high school failed us lol
You need credit to buy a house, get a job, get a phone service, renting a place, financing a car, qualify for insurance, get loans, and ironically… to get a credit card!
Great ways to use your credit card without being overwhelmed by it:
(I 100% encourage this, fill up your tank all the way every time you need to and just pay it off monthly)
(If you need a new computer for your business but can’t afford it)
(If you want to build your credit in an easy/safe way, just use a credit card for EX: your phone bill)
-Don’t miss a payment & don’t pay the minimum option
Ready to start fresh and budget like a boss? Here’s a spreadsheet! (for video keep scrolling)
Easy ways to save money (drag and drop to desktop)