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The best way to avoid financial stress is not to live beyond your
means. As a college graduate, you may be tempted to
celebrate your accomplishment by purchasing a car or
making a large purchase on your credit card. This is never a
good idea. The enjoyment of “things” that you purchase on
credit will be short-lived and lead to long-term
financial instability. Instead, evaluate your
financial health and then develop a plan for the
future.
Evaluate your financial condition.
Determine what
spending habits resulted in your current situation. Do
not dwell on past mistakes; rather learn from your
previous behaviors so that you can make more responsible
choices in the future.
Honestly evaluate your relationship with money.
Buying things
could satisfy your need for control, comfort, power, love, security
or something else. Do you buy gifts as a way to garner love from
your children? Perhaps you purchase items to fill a void in your life.
Knowing the root causes of your spending and what triggers you
to get off budget is the first step to having a healthy financial
relationship.
Seek Guidance.
There is plenty of free help available online and
in-person for people that want to learn how to set up and follow a
budget. Many churches, community resource centers, and
financial institutions have seminars or one-on-one sessions
available. Don’t be embarrassed if you don’t know how to
create a budget. The sooner you learn, the better off you will be!
Follow a budget.
Once you learn to make a budget, the next
step is to follow it. Using a budget can feel both constraining and
empowering. Think about budgeting as if it were a game. To win
the game each month, you must come in within the budget.
Reward yourself (within budget, of course), for a job well done)!
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Section 18 – Planning For Your Future