Three Steps to Creating a Realistic Budget

As you transition from being a teenager to an adult you might find yourself focusing on your

relationships, exploring new things, having fun, and looking into different careers. Sometimes

you are involved in a “serious” relationship or don’t want to miss out on exciting things that your friends are doing so you make decide to spend money, put things on a credit card. At this age we tend to think we are young and have our entire lives to work and pay off credit cards. This mindset, however, prevents us from attaining financial freedom. While understandable to want to be a part of things and spend money to do things with our friends, we also need to begin working on our financial independence. Here a few steps to help you start creating a budget and thinking about your spending.

1. SET UP REALISTIC WEEKLY GOALS. Set up weekly spending goals that are realistic. Set a realistic goal by thinking, saying, and writing it out. For example, you can say: This week I am going to only spend $100 on “fun.” This will allow you to start training your brain to think about how much you are spending.

2. BE HONEST WITH YOURSELF. At the end of each week, (maybe after Sunday Funday), ask yourself, Did I reach my spending goal?

3. FORGIVE, ACCEPT, AND MOVE ON. Forgive yourself, accept yourself and move on to the next week. If you didn’t meet your goal—it’s ok. Try again the next week. Ask yourself, Was the goal realistic? Was I being too rigid?

Using these three steps will help you start thinking about where your money goes and how much you spend on a weekly basis. Remember, after doing something for twenty-one days—it becomes a habit.

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