"No money mo problems"- Me

If you're an 18 year old on your own financially for the first time, you are most likely going to make some really stupid and painful mistakes before you decide to be disciplined and manage your money. This is an attempt to help you skip the painful part and go straight into being responsible. Some of you may be interested in this section because you already did stupid things and are broke. Hey, we've all been there. The important thing is that we own our mistakes, learn the lessons and correct them. So here are some ways to win with money, no matter how big or small your bank account.

A. DON'T FALL INTO THE DEBT TRAP. Yea. I know all your classmates are maxed out on student loans. I know they all say they are going to have a sweet gig after graduation and they'll just pay it off.

Dude. Have you heard of the "Student Debt Crisis?"

And while I advise you to stay away from gambling too, if I were a betting man, I'd bet that the government is not covering these loans now or anytime in the future. So if you can avoid getting student loans, don't do it! If you already did it, start planning now on how you are going to pay off those loans ASAP. Which means you may be opening a savings account and doing some work during the school year or summer breaks and throwing all of it in the bank so you can pay that sucker off!

But this section isn't really about student loans, it's about the nice, smiley guy giving out free t-shirts or gift cards if you fill out this credit card application.

Walk away.

Throwing stuff on a credit card is NOT managing your money, it's borrowing from your future. Even if you intend to pay if off every month. Even if you get reward points. Don't listen to the Tik Tokers. The majority of young adults with credit cards DO NOT pay it off at the end of each month, and it has been proven that people who use credit cards (as opposed to cash or debit cards) will spend 12-18% more than peers using a debit card or cash. And if college is all about setting you up to have a great career and a promising life, then don't mess that up by having to give your first hard-earned (and much less than you were expecting) paychecks to Chase or Amex.

B. MAKE A BUDGET AND STICK TO IT! It's simple. At the top of a piece of paper, napkin, spreadsheet, pizza box...whatevs...write down how much money you have each month at your disposal (from work, parents, trust fund (lucky you!), etc).

Under that deduct your monthly bills/expenses such as gas, phone, insurance, food, and don't forget entertainment! I didn't say you couldn't have a life! Just put it in the budget and stick to it. Don't forget those Netflix and Spotify subscriptions or gym memberships. It's helpful to pull up your bank statements from the past 3 months to get an idea of what you actually spent.

Next, subtract your expenses from your income (the number on top) If you have any money left over, throw it into savings (you ever hear of compounding interest? Look it up if you want to be a millionaire one day) or tack it onto your gas or food budget. Those numbers are almost always too little when you start budgeting. When you do this you are giving every dollar in your budget a "name" or a "job." You are taking control of your money and not the other way around.

"But I tried to budget and it didn't work!" Most budgets will take about 3 months to get right. If you never made a budget before you probably have no idea just how much you are spending on food and gas or fun. So simply make adjustments to the numbers, as needed, until you have an accurate budget.

There are many budget sheets you can find online or you can find one each month in our planner The Game Plan: College Student Planner.

C. CONSIDER YOUR EXPENSES AND YOUR GOALS. Once you have a working, accurate budget ask yourself, "Do I need to be spending this much on these subscriptions?" " Do I need that gym membership when my college or neighborhood has a gym I can use for free?" "Man, I'm keeping the local Taco Bell open. Maybe I should buy some groceries and make my own tacos." Find ways you can save money and then set a goal with it. Maybe you perked up when you read the word "Millionaire" in the last paragraph. Could you shave $50-100 a month from your budget and start investing it in something legit and safe (Not Bitcoin or day trading). Or maybe you don't want to be shackled by that student loan you took out or maybe you have plans to get a master's or advanced degree. Maybe you want to study abroad in the summer. Make it happen! Give each dollar a job, and get it paid! And hey, I got a 4 year college degree in three years, taking 18 hours a semester while working a 40 hours a week job. Ain't nobody died working their way through college. How bad you want to reach that goal? Dreams don't work unless you do!

D. USE CASH OR DEBIT ONLY. Now this will require you to keep up with what is in your bank account. But as you are sticking on a budget, and staying away from evil credit cards, pay for things with cash or your debit card and keep track of how much you have left. Keeping a certain amount of cash in your wallet for say "fun money" is an easy way to keep track of it. When the money runs out, you stop having fun.

Just kidding.

When the money runs out, you find ways to have fun for free! But you don't put "fun" on a credit card. If you are going to stick to a budget you have to be aware of how much is left in the grocery budget and how much gas money is left for the month. This awareness will help you make decisions on what to do and when to say no. And yes, saying no sucks but welcome to adulthood.

How can you keep track of spending? Here are a few suggestions: 1. Make a spreadsheet. Put the amount you budget for each item and deduct it when you spend so you can keep track of how much you have left. 2. Save every receipt. Divide them into categories and staple them. When you add a new receipt, you deduct it from the total and write your new total on the top receipt. 3. Use the Everydollar app by Ramsey Solutions. It's an easy and great way to both budget and track expenses, and it's FREE!

Plan now for future financial success

These tips will help you win at money this year and next. If you are unmarried, living at home or on campus, still under your parent's insurance, etc etc, this is a great opportunity for you to throw some money into the bank! Before you have normal adult expenses (like a mortgage and insurance), the more you save and the less you are in debt, the better prepared you will be for future success. In fact, decisions you make today may drastically affect your financial makeup many years into the future (no pressure!!)

Here's an example

A young couple both graduated from college. They took out student loans to cover their expenses, just like all their college friends. They didn't work while in school so they could focus on school. They got married and combined their very low bank accounts. When they created their budget, they realized they owed about $30k in student loans (which is actually pretty low). They figured they would just pay it off quickly when they got real jobs. But the real jobs were entry level positions and they didn't pay as much as they expected. Also, when they took on all of the expenses of living themselves, they realized how easily car loans, gas, doctors bills, insurances and groceries took away from the budget. And by the time they got to the end of the month, they could really only afford to make minimum payments on their student loans.

Still, determined to not have this debt hanging over their heads for the next 15-20 years (like all their college friends) they hustled, lived on a budget, picked up more work and paid as much as they could on the debt. They spent the first 5 years of their marriage just paying off their loans. So yay! They did it. But then they imagined what they could have done with that $30k. It could have been a down payment on a house, or a great start to their investment portfolio. It could have been used for higher education to get an even better-paying job. Or it would have just relieved a lot of the early years of marriage by just not having to worry about a student loan payment! Consider the implications of any of those uses and how it would have affected their futures financially and emotionally! But, they didn't have that $30k at their disposal. Instead of putting it in their pockets, they got to give it to a bank.

In conclusion, don't waste your college years thinking you will be financially responsible later. Set yourself up for success by making wise choices and learning how to budget and manage your money now! Your future self will thank you!

Money, like emotions, is something you must control to keep your life on the right track.” -Natasha Munson