I think the best thing you could do is start budgeting! Budgeting is the foundation to a solid financial future, and when you have a solid budget, that’s how you know you can start investing, saving, and spending on various things with confidence. I think you made a good point that having the 10 grand in your bank as just a large number without a purpose can allow you to look at it as money to be spent. If you created a budget, in particular, one that uses the envelope method, then you would assign every dollar in your bank account to a specific category that you’ve created. You might name them after your expenses, and then you’ll also make some savings ones (such as new car fund, emergency savings, vacation fund, etc). Doing this gives the dollars a purpose and helps you see that they are not available for spending. I’d really recommend you take a look at YNAB, or “You Need A Budget”. They are a budgeting software that does what I just described really well, and their method of having “Four Rules” is an awesome budgeting foundation to live by. You should check it out!
mko087 t1_iuhgqpu wrote
Reply to Im 18 and would love some advice. by AccomplishedTotal741
I think the best thing you could do is start budgeting! Budgeting is the foundation to a solid financial future, and when you have a solid budget, that’s how you know you can start investing, saving, and spending on various things with confidence. I think you made a good point that having the 10 grand in your bank as just a large number without a purpose can allow you to look at it as money to be spent. If you created a budget, in particular, one that uses the envelope method, then you would assign every dollar in your bank account to a specific category that you’ve created. You might name them after your expenses, and then you’ll also make some savings ones (such as new car fund, emergency savings, vacation fund, etc). Doing this gives the dollars a purpose and helps you see that they are not available for spending. I’d really recommend you take a look at YNAB, or “You Need A Budget”. They are a budgeting software that does what I just described really well, and their method of having “Four Rules” is an awesome budgeting foundation to live by. You should check it out!