How can I keep my finances realistic?

Best Answer

Keep a journal of your purchases. A very good way of managing finances that many neglect.

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Other Answers (4)

always know what you can afford, and never leave yourself living paycheck to paycheck. i know it%26#039;s hard being a materialistic student who lives on her own and supports herself. but that%26#039;s where responsibility and financial planning comes into play. keep a notebook of your financial plan and break it down. you can do it, i do and i have two jobs because i know that%26#039;s what it takes to support me comfortably. and it works im not up to my neck in debt even with one job just get organized, responsible and plan it out/ break down the numbers.
A realistic budget comes from being honest with yourself. You cannot have money and spend it all. Look at your existing income and expenses. Are you truly getting value from everything you buy? Do you have goals and what are you doing to achieve them? Live within your means. Set priorities. It is very important to know the difference between wants and needs. Do you have a long term savings vehicle like 401K or IRA? Get one. Do you have a method of saving for short term savings like an emergency fund? Get one. Being realistic comes from being practical. A pen and a piece of paper will help you get started TODAY. What do you want to accomplish and when do you want to accomplish it and what can you do to get there??? Take baby steps instead of looking at getting wealthy overnight. Get rid of (or cut back on) the expenses that aren%26#039;t helping you achieve your needs or helping you make money.
If you really have no clue as to where are you standing financially, then open a savings account. (Note: Online savings account give good interest) Put 10% of your paycheck on the savings and see how you manage. If you are doing quite well, then increase the percentage.

Also, You can grab a ledger and write all your monthly payments and your income. Then figure out how much you use on food, gas, etc (this number may vary so just use an average). If you really want to get scared, add on the side the balances you owe. I did that once....only once....never again lol. It was okay to see the payments, but when I listed my actually balances, I was quite shocked I spent so much!

Good luck!

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