Setting a budget means keeping track of each paycheck and how much of it goes towards your expenses, savings, and then fun things like happy hours, vacations, and shopping.
Your first priority when setting up your budget should be making sure your basic living expenses are covered. this includes things like food, shelter, and utilities.
Most graduates also need to budget for debt payments, most likely in the form of student loans. And some also need to take expenses like transportation and child expenses into consideration. Everyone’s situation is different so look at every aspect of your life. Look at how much the expense costs you and prioritize what is most important.
Any remaining money can then be viewed as excess funds to shop, watch movies, go on a date or take a trip.
When first starting out, excess funds might be minimal or nonexistent altogether. But stay disciplined and it will be worth it in the long-run.
If you are lucky enough to make big bucks right out of college, it’s incredibly important to set a budget to avoid lifestyle inflation and debt.
2. Pay yourself first
Start saving money from the very first paycheck, in addition to contributing towards retirement.
