If you’re a student, then you know how difficult it can be to save money on campus. However, it doesn’t have to be so nightmarish. Not if you, know what you’re doing. And if you don’t, no worries. These personal financial tips from Desmond Bredu are going to turn your personal finances around.
Follow The 80/20 Rule
When it comes to getting into the habit of saving, a lot of us struggle with questions like ‘how much of my already small allowance should I actually put away?’ And that’s an important question. Save too much, and you might go broke early and end up having to dig back into your savings. Save too little and you might feel like it’s pointless. According to Desmond Bredu, following the 80/20, which is saving 20% of your allowance and using the rest (the remaining 80%) to cover your expenses and wants is the way to get started with taking control of your personal finances.
Learn What Your Expenses Are
Not understanding what your expenses are is an easy way to set yourself up for failing at taking control of your personal finances. In order to make a budget and be able to stick with it, you should know what things you can’t avoid spending on. A good general rule, according to Desmond is splitting the rest of your allowance into 50/30 of the original sum. 50% goes to the costs that you just can’t avoid (the constants), and the remaining 30% goes to the important things you choose to spend on like birthdays and gifts.
Make A Budget
Finally, the way that all the tips we’ve mentioned above come to play and work for personal finances is through a budget. When you draw a budget, you get a perspective of all your spending, and you already know where your money is going. According to Desmond Bredu, you don’t have to find a use for every single cedi. Leaving room in your budget for incidentals and emergencies will help you get through the month without going into your savings.