"Money" and "Relax" never really show up together in the same sentence. Things can get tense, especially if you've taken out student loans. With the right combination of grit, organization, and prioritization, anyone can become relaxed about their money - just take these folks for example.
5 Habits of Financially Successful People
August 7, 2017
#1 THE BUDGETER
It's important to build, analyze, and tweak your budget regularly.
Build: Look at your expenses, recurring costs, and potential new investments. Download an application (here are our favorites) and make sure to check it regularly.
Analyze: Right off the bat, you'll realize what items you spend too much (or too little) on. Adjust your shopping accordingly!
Tweak: If you find yourself needing to put more into a rainy-day fund, or are looking towards making a large purchase in the future, tweak your budget.
#2 THE INVESTOR
You should be best friends with your money - but also know when to store it away. If your company offers you a 401k as part of your benefits package, take it, make the maximum contribution to it (if possible), and don't touch it! Explore other options as well, like a Roth IRA.
#3 THE FRUGAL FRIEND
This one almost goes without saying, but spend wisely. Kick your $20-a-week latte habit to the curb - you can probably make better coffee at home anyway. Don't go out to eat for every meal; spend more time cooking and meal-prepping.
If you already have student loans, pay them off in a SMART way. Pay off the loan with the highest interest rate FIRST, no matter how much the balance is. (This is called the Debt Avalanche, rather than the Debt Snowball approach.)
#4 NO JUDGEMENT HERE
Let's face it: everyone's spending habits and priorities are different, so don't waste time comparing your financial facts with others. Not only will it distract you, it might also cause you to spend frivolously. Focus on your own goals, and stay within your lines. Don't hop on the bandwagon of buying a new item just because everyone else is!
#5 KEEP LEARNING
Just because you have a new source of income and are currently stable doesn't mean you can stop paying attention to new trends and opportunities. Subscribe to newsletters and podcasts and stay informed. Personal finance is sometimes a tough concept to grasp, but if you stay as informed as possible, you'll be able to make better decisions in the future.
The Skills Fund Financing 101 blog is a great place to learn about investing, budgeting, and student loan repayment strategies. We're glad you're here.
Skills Fund knows that financing knowledge is important, so we've created a collection of resources to help educate students and graduates alike.