I have written many blogs on personal finance, today I am going to speak specifically about investing, but not investing from the standpoint of a 40-something somewhat wealthy person with savings in the bank, a house and a stable career he or she has been in for over a decade.
This blog is aimed towards Millennials. If you a person age 18 to 34 then listen close because applying the small techniques that I am going to share in this blog could mean the difference between your financial success and failure later on in life.
Before I get in to the Nitti gritty of this, I want you to know that if you feel like you are broke at the end of each month, living paycheck to paycheck or simply just not making enough to meet your monthly nut and save a little bit at the end of each month then this blog is for you.
You could also be one of the thousands of recently graduated college students on the job hunt drowning in school loan debt wondering how you are ever going to get ahead.
Or, maybe you are doing ok financially and you are just looking for more ways to become savvier with your money.
Whatever category you fit in, what I am about to share is going to help you tremendously! Enough said, lets jump in to it.
Step 1 Gauging where you are.
I have never met a wealthy person who did not know where they were at financially. People who have built real wealth have some type of formula they use to save, invest, pay taxes and to live. This has been one constant that I have experienced with every wealthy person I have met that didn’t inherit the money or get lucky.
What you need to do is figure out where all your money is going. I think you would be surprised to find out that you probably waste about $20 a day on bullshit. What I mean is you may have a daily Starbucks Frappuccino habit, or maybe you never cook at home and eat out 3 times a day. What ever it is everyone has their vices and they are costing you greatly.
So, first thing is first, write down all of your expenses. Everything. From monthly fixed expenses like Rent, mortgage payments, car payments utilities etc. right down to your varying miscellaneous expenses. This will allow you to see where all of your money is going.
Remember we cannot fix a problem until we can recognize there is one, and this is going to help you gauge where you are at financially.
In part 2, I am going to share with you the simplest budget you have ever seen that anyone can follow even if you think you are to broke to save. In fact, I am going to share with you my own personal excel document that you can use to do this exercise.