Alright, it’s time to lock down those bank accounts for the rest of the year. With only a few weeks left of 2016, you should take this time to get your finances in check and organised so the rest of your life can fall in place.
And your thinking: “But I’m just a teenager disguised an adult, a sheep in wolf’s clothing” and we don’t buy it. Everyone has it in them to be a responsible and diligent saver. We believe in you, even if you don’t.
We’ve discussed previously the importance of setting up a savings account as well living alternatives if the rent prices are too gouging. If neither of those took your fancy, here’s the simple and effective way to manage your money (after tax). It’s called the 20-30-50 rule.
20% – Your Savings
If you owe as much debt to the student finance crooks as me, you’ll realise the importance of tucking away a little a month for the inevitable rainy day. The best advice we can give is to put it in a separate fixed rate savings account. This way you won’t feel tempted to touch it in a moment of weakness.
30% – Your Wants
Life would be miserable if not for this 30%. You work hard and deserve to spend your earnings on things you want. Eating out, holidays, Netflix subscription, your hobbies – you need to spend money on these things to keep yourself sane. The trick is to manage this percentage. The less money you spend, the more special these treats will be.
50% – You Needs
This is the boring part. Half of your money goes on the essential things you need in your life. Whether it’s transport or food, you’ll be much happier paying more for these essentials than you will be living in squalor but with lots of things from the ‘Wants’ sections.