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This is the advice I gave my kids:
Always have a budget, regardless if you make lots of money or only a little. It can be simple or detailed depending on your time and needs.
One goal is to never spend more than you make. But the real goal is to save part of your income. This is very important for emergencies and retirement. You will probably need to save at least 15% of your income for retirement. However, there are many variables. Consider saving 20% or even more if you started late.
At a minimum, you should save 3 months of expenses in a rainy day fund. Consider saving 6 months of expenses, if you are in a higher risk situation. Some people consider saving based off of income instead of expenses but that may not be necessary if you accurately calculate all expenses including regular healthcare.
Be proactive instead of reactive. Some tools record your transactions and tell you what you have been spending your money on. These tools are good but it is even better to have an idea of how you want to spend your money.
Trim your budget. Look at where you are spending money and see if you can save. Life changes and so should your plan.
On the other hand, you don't want to be too hard on yourself. Balance and happiness are important, as long as it fits your budget. Don't be afraid to spend money on things you want. The point of a budget is to spend money on the things you want and be financially healthy.
If you cannot fit everything in your budget, then its time to prioritize and trim.
I like to look at my daily expenses such as coffee and multiply by 365. A $3 coffee turns out to be $1,000 a year. You may not think about it if you only see it as a small daily expense. I decided to start making my own coffee at home.
Good luck! I hope we all get rich. In the meantime, let me know your favorite tips of how to save or earn money. Feel free to check out https://invitation.codes/@j_wowza in case there is a referral that can save you a few dollars.
