Budgeting 101 - Part 1

$ Hey there, money pros! $

Let’s talk about budgeting—yes, it might not sound as exciting as a music festival, but trust me, it’s a game-changer. But hold up! Before you roll your eyes and swipe left, let me tell you why budgeting is the secret sauce to taking control of your cash, crushing financial goals, and still having enough dough for tacos on Tuesdays.

Budgeting: It’s Not a Four-Letter Word

Budgeting isn’t about restriction; it’s about direction. Think of it as a game plan for your money, so you’re not left staring at your bank account like, “Wait, where did it all go?” A solid budget helps you stress less, spend smarter, and build financial freedom. It’s like giving your money a purpose instead of letting it vanish into the abyss of impulse buys and forgotten subscriptions.

Why Budgeting is a Game-Changer for Young Adults

Let’s be real: life is expensive. Between student loans, rent, and that bottomless brunch you had to attend, your wallet can feel like it’s on life support. But here’s the thing—budgeting isn’t just about balance; it’s about choices. Sometimes, you won’t have enough for everything, but you can decide where your money goes. 

Alright, so that limited edition player skin has been giving you the look for weeks now, huh? You know, the one that whispers, “Buy me, and your K/D ratio will skyrocket (and so will your confidence).” Go for it, my dude—treat yourself! But, uh, maybe double-check your bank account first. Rent and ramen noodles come before glowing neon armor, no matter how sick it makes your character look.

And ladies, the same goes for you—if that perfect oversized hoodie or those cult-favorite skincare drops are calling your name, you do you. Just remember: electricity bills and ice cream tubs are the real MVPs in your budget. Priorities, people! Glow up responsibly, whether it’s in-game or IRL. 💅🎮

Prioritizing your spending means you can still enjoy what you love without constantly stressing over money. It’s that simple.

Debunking Common Budgeting Myths

Because Lies Are Bad

❌ "I'm broke—I don’t make enough to budget."

✅ Truth: Budgeting is especially helpful when money is tight. It helps you stretch every dollar and avoid overspending. Broke or not, you’ve got this.

❌ "Budgeting means no more fun."

✅ Truth: Nope, nope, nope. A budget is about balance, not deprivation. You can still enjoy nights out, hobbies, and the occasional splurge—just plan for it!

❌ "Budgets are too complicated."

✅ Truth: Budgeting can be as simple as the 50/30/20 rule (more on that in a second) or tracking your spending in an app. Start small, adjust as you go, and don’t overthink it.

❌ "I’ll start budgeting when I make more money."

✅ Truth: The sooner you start, the better habits you’ll build. Plus, budgeting now sets you up to crush it when that bigger paycheck rolls in.

Budgeting Basics Every Young Adult Should Know

1. The 50/30/20 Rule:

   • 50% Needs/Fixed Expenses: Rent, groceries, utilities—the essentials.

     These are the predictable, steady costs in your life—think rent, car payments, or your phone bill. They’re the same every month, so they’re easy to plan for.
     

   • 30% Wants/Variable Expenses: Netflix, sushi, concert tickets—the fun stuff.

     The part of your budget you can tweak—spend more on what matters, cut back when it doesn’t. These expenses fluctuate month-to-month because your priorities change over time. Groceries, dining out, entertainment, and that random Amazon purchase you made at 2 a.m. (we’ve all been there). Tracking these helps you spot spending patterns and adjust as needed.

   • 20% Savings/Debt: Emergency fund, student loans, or that dream vacation fund.
     

2. Emergency Fund 101:

   • Why It’s Essential: Life loves throwing curveballs—car repairs, medical bills, or sudden job changes. An emergency fund is your financial safety net, so you’re not scrambling when things go sideways.

   • How to Start: Aim to save 3-6 months of living expenses. Start small—even $10 a week adds up over time. Pro tip: Automate your savings so you don’t even have to think about it.

Budgeting = Less Stress, More Life

Luci allows you to track spending and pick the best credit to make the best out of your budget

💻 Want to Master Budgeting?? 💵

Learn how to budget like a pro in Budgeting 101 - Part 2! We break it down with simple tools—spoiler: it’s easier than you think.