Budgeting at 22!

So I graduated college in May and got my first real job. I moved out and took responsibility for so many more things than I had before. I feel like for this post to make sense you need to know a little bit about me.

Meet Me 

Like I said I am 22, but I am also a planner. I am constantly thinking about things in the future, which I know is not always good. Starting my senior year of college I started watching videos and researching budgeting and money management. I never wanted to wonder where the money for my rent or gas would come from. I also never wanted to worry if an emergency came up. I wanted to be financially stable.

As far as planning for the more distant future, I would like to stay home with my future children if that is at all possible. I do not want them to feel worried about anything financial when they are young (this does not mean getting whatever they want). With all of this in mind, I knew for my own peace of mind I needed to make a budget.

My Budget

I am not going to give any actual numbers, but I can tell you that I do not make a crazy amount of money. The goal of my budget was to cover all my needs, plan for the future, and be debt free. The debt I have right now is my student loans and there is definitely more than I wish I had.

With all that in mind and being a "new" adult, I decided using a cash-based system would be the best for me.

I started off with a written budget on paper and pencil. I looked at how much I would make (I get paid twice a month). Then I looked at when bills were due and the things that I needed to pay. I started by making two groups, what would come out of my middle of the month paycheck and what would come out of the end of the month paycheck.

Personally, I decided it was important for me to tithe, so that is the first thing that I took out of both of my paychecks. Then I made sure my rent (water included), electric, student loans, internet, car insurance, renters insurance, and life insurance were taken out. I also started setting money aside for retirement right away.

Next, I moved onto things that were also needs. I budgeted for my groceries and gas. I also made sure that I had money going into savings.

Finally, I took the rest of my money and divided it up into categories. You could make a general spending category, but it made me feel better to split it up. I put money in entertainment, home decor, clothes, gifts, personal hygiene, classroom and a fund for spending time with friends. Now, these budget categories are more fluid. I like having money set aside for these things because then it is not a huge expense. These categories can borrow money from one another. Let's say I want to buy craft supplies I do not have a specific craft area but I take it from these categories.

Let Me See the Money 

Every time I get paid I go to the bank with my check (my job does not direct deposit) and get out the amount of cash I need for my cash items. Things like rent, utilities, and student loans are kept in my account. I stuff the cash into my wallet (I made myself little dividers). Some of the things like insurances that are not monthly, I still take the amount I need per month and move it into my savings account.

So far this method has worked very well for me. My main goal is to get my student loans paid off. My two biggest tips which make this easier are budget money for you to be able to have little things (hobbies, clothes, coffee) and if the cash is not there you do not need to purchase it.

If you have any tips, questions, or need clarification leave a comment below.