When your making money, no matter what you do it always very important to remember you want to build a savings. It is a good idea for parents to start their kids off early in the practice of building a savings account. The best part, most banks will pay you to keep an active savings account. These accounts will build a small percent of interest every month and over time it really adds up. The best thing you can do is never use the money you have set aside in a savings account.
My suggestion to you is to have two saving accounts. If you plan on saving just five percent of your income split it and put one half in one savings account and the other half in the other savings account. Designate one of these accounts as a rainy day account. So if you have a major home or auto repair or unexpected medical bill you can use those funds to help offset the cost. Leaving the other savings account for dire emergency funds. If you should lose your job this will help you keep your head above water for a while you find a new source of income.
Your monthly income limits what you can or can not purchase, and taking on debt seems like a good way to make these expenditures easy. You must keep in mind that you need to set aside a budget however. If you only make $1,000 a month try to keep your budget lower than %900. It doesn’t seem like much but in the long it really adds up. Never let your spending become more than your income.
There is a lot to remember when it comes to managing your financial success. It can be very frightening to not know where the money to make your next payment is going to come from. The worst things you could ever do though is to give up or panic. Never let your situation go from bad to worse because keeping a level head was to much.