Managing your money can be challenging. The key is learning what to do with the money you already have, and the money you earn.
Set Up a Budget
** List your income sources; always use after-tax income in your calculations.
** Figure your expenses.
** Set aside 5 percent of your income for savings.
** Subtract your expenses from your income and savings to see how much spending money you have.
Know Your Responsibilities
** Learn the difference between gross vs. net income and budget to the latter.
** Calculate expenses you'll have to pay when you're out on your own (rent, car, groceries, utilities, insurance, etc.).
** Get renters insurance, and protect yourself and the things you own for as little as $5 a month.
** Use credit wisely! Bad credit will stick with you for a long time, impacting you when making large purchases, such as a car.
Manage Your Checking Account
** Determine how much cash you need weekly and limit your ATM trips to once a week or less.
** Use your debit card whenever possible to avoid ATM fees.
** Use online bill pay and online money transfers where you can.
** Set up overdraft protection on your account.
Invest in Your Future
** Have money deducted directly from your paycheck or checking account through electronic funds transfer.
** Establish an emergency fund for car repairs and unexpected expenses.
** Learn how mutual funds can help you compound your earnings over your lifetime
** Invest a little each month with an automatic investment plan that takes funds directly from one of your accounts.
-- Courtesy of USAA
