This is another great question from a reader at Single Edition.
I am about to embark into the “real world” and am going on countless interviews. When I do have a job after graduation, how should I budget my money? I am known for spending all of my money.
Good for you for thinking about budgeting right out of college. This is the time to set your financial habits into place that will be with you for a long time. Once you know your salary, look at it on a monthly basis. Then, come up with the list of fixed expenses. This does NOT include food, beauty, clothing or entertainment. The next step is to put aside a fixed amount into a savings account. Try and set it up so it is taken out on an automatic basis. You won’t miss it and you will be glad its there. Finally, with the money left over, come up with a weekly amount. That is your spending money for the week for meals, groceries, clothing and entertainment. Go to the ATM once a week and spend only that amount for the week. Doing it this way will make it very easy to spend what you can afford and make financial decisions instantly.