How To Pay Your Bills… and Not Worry About Living Paycheck to Paycheck
I see so many peers of mine struggling with their finances, and after conducting a survey of top producing Millennials, I notice their finances is an often overlooked or ignored subject. It leaves people wondering where their paycheck was spent or depressed because they realize they can’t go out with friends or buy that new outfit they wanted. I’m far from perfect in this arena, and I’ve gotten overdrafts and bank fees because I didn’t pay attention to my finances. But I acknowledged how dumb I was in this area and devoted time to learning the proper mindset and system to effectively pay my bills and not living paycheck to paycheck.
I think the problem is two fold:
First, we usually weren’t taught how to manage our finances, pay our bills, or develop a simple budget.
Second, we don’t like doing things we don’t know how to do.
So that puts us in a really shitty situation when it comes to money, because money is not something that is going away. Money is a reality of our society and our ability to effectively manage our resources is fundamental to our prosperity and fulfillment in life.
Probably one of the most basic adult skills to learn is paying one’s bills. However, I don’t remember taking a class on that in school. So here’s what I’ve found has given me most clarity when it comes to paying my bills!
The first thing you need is: PRIORITIES
I think a big problem with Millennials is that it is too easy to spend money these days on things that we don’t really want trying to impress people we don’t really care about. There are so many influences that try and pry our hard-earned money away from us, but determining our real priorities will make it easy to decide whether or not an expense is really necessary.
The second thing you need is: a SYSTEM
Too many people just wing their finances or do it only when they have to. I feel like some people treat their finances like an overweight person treats the gym: They only think about it if things get really bad. However, I have realized that this habit is not conducive to someone growing financially. So a system is something that you do regularly such as weekly, bi-weekly, or at the very least monthly. But your finances play such a large role in our ability to live freely so it’s important to gain as much control over our finances as we can.
The last thing your need is: a PLAN
So take a look back on your last three month’s expenses. How much did you spend on a particular category? Are there any expenses that occur regularly? Make sure to note these and specifically the dates that these expenses will be charged. In our subscription-based economy, a big challenge young people have is not being aware of when their account is going to be charged. So list out the expenses chronologically so you will know when you need to have the money ready. Lastly, make sure to set aside money on a consistent basis. I move over money weekly into separate accounts so that expenses such as rent are ready and available when it is due.
I hope you found this short read helpful. If you are interested in learning more, watch the video below and subscribe to our channel to get more tips on how to grow your finances!
You can also download our Millennial Skills Spending Plan!