How to balance a checkbook
why is this on my dash. what the fuck im not 40
Honestly you should start doing this when you start working.
^ Truth. Especially when you get your own place, a job and a personal bank account.
This is the best powerpoint I’ve seen on Tumblr.
people just dont appreciate quality shit nowadays
You’ll also want to remember which companies you have autopay service with and what ones you don’t. Things like sewage, trash, and some utilities don’t have autopay options, so it’s still a good idea to know how to write a good, old fashioned check. It’s also very easy to forget that you have autopay set up for certain bills, and when you move or change your service you’ll need to remember to uncouple that charge from your bank account or they will continue to charge you, even if you don’t live in the area or use the service anymore. I’ve had friends who have accidentally been paying for utilities to places they no longer live at because they forgot to terminate their autopay service.
Another good habit to have is checking your bank account online frequently - at least once a pay period (every 2 weeks).
Also, don’t forget to start putting money into your 401k/403b retirement plans early. While I was still living with my parents, I would toss about $300 out of each paycheck into my retirement plan, toss about $150 into my emergency/vacation savings account (I’ve since split these into two separate accounts), and making sure to estimate how much I needed to pay for my bills/loans (it totaled about $500+ every month at that time). Now that I’m on my own, this is split in many more ways, but I still contribute enough money to my retirement plan that I should be able to live fairly comfortably by the time I retire. Never forget about putting money into retirement. You don’t want to have to work instead of retire.
Another big thing to remember is how much money you need to buy groceries. This is REALLY IMPORTANT. If you are living on your own, you will need to buy food in order to live, as well as toothpaste and toilet paper and all of that. So budget out how much you need for rent/mortgage, utilities, other bills, loans, etc., then figure out how much you tend to consume and calculate how much dinero that equals. INCLUDE MEALS OUT. Which means, even though this fake Power Point is nice, it’s not entirely realistic.
So, using myself as an example: I live alone with a small dog. The dog runs out of food every month. That’s $12 for dog food. In total, I spend $80 biweekly on groceries (this includes toiletries and random other things I may need). That’s, what, about $180? Add in the amount of gas your damn car uses, mine uses about $30 of gas biweekly, so that brings my personal consumption up to less than $250. However, because I like rounding up to make myself believe I’m poorer than I am, I would call that $250 gone from my monthly money allowance. Add in the fact that I tend to eat out every week, which is about $20, so we’re to $300 now. Next up, all my bills. If I add my mortgage, my internet/cable/phone, electricity, sewage/trash, home association fees, and other random bills, I get a grand total of $1500. That’s how much it costs every month for me to survive as a single woman living alone with a dog.
Now, don’t forget that you’re also going to want to pay for insurance. I send off about $90 biweekly for health/vision/dental insurance on top of the $250 going to my 403b and the $150 going to my vacation/emergency savings accounts. Everything’s biweekly. Add that to my $1500 and I get (rounding up again to make myself feel poor) $2500 that will never hit my checking account. Ever. This is all based on an income that is considered “good.” I make a very good amount of money. Every year, $30000 of that rather good income is spent on me surviving and planning for my future. This makes me look poor when I’m really not. And you know what? I still manage to buy the things that I want to buy. Being negative $30k is meaningless to me because I’ve been cautious with my funds, I’ve planned for my future early, and I’m doing everything that’s mentioned above.
I know for you younger people (I’m barely older than you guys, seriously), saving for the future and budgeting seems like something only an adult should do, but it’s really not. The earlier you start doing it, the earlier you can reap the benefits of having extra cash on hand. I’m not exactly swimming in dough, but I have enough that I can buy my expensive clothes and toys from Japan without being in absolute debt. Sometimes, I do struggle if something unexpected happens, but sometimes even the money you’ve put aside won’t be enough for something huge and disastrous (like your car deciding to have issues for 3 straight weeks, which was a thing that happened and it was a struggle, but I got through it). It’s called life, but if you’re prepared for it, it’ll help tremendously. I recently learned that my heater is about to die just as polar vortex insanity was beginning, so I started preparing to spend upwards of $1500 for a new unit. That’s what being an adult means: preparing for when terrible things happen so you can get over that hurdle and prepare to jump the next one.
SAVE EARLY; SAVE OFTEN.
Okay, I’ll stop ranting like an old person now.