Hey guys! I'm 16 and got a job a few weeks ago, I make around $400/month after tax (I get paid weekly) and what I do is first I take out any mandatory expenses I have (aka just my phone bill once a month, I don't drive) and split the rest in half. 1 half goes into my savings for college and the other half is spending money I use to have fun throughout the week and/or save up for things I want. I was wondering if there were any more efficient ways to budget. I use Microsoft Money to track everything and looking at the pre-made budgets, mine looks really simple in comparison. I want to strike a good balance between being able to enjoy my HS experience and getting some cushion for college. Is my current budget fine or should I adopt a different one?

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[deleted] t1_jeg7x74 wrote on March 31, 2023 at 7:58 PM

#2,547,418

Fact that you’re 16 and already mindful of finances and savings is more than enough. Nothing wrong with your current approach as you’re not earning huge amounts. Use the learnings and discipline to your benefit and adjust as your earnings increase. Good luck

Meewol t1_jega1sa wrote on March 31, 2023 at 8:12 PM

#2,548,107

I’m 28 and that’s exactly how I still budget and I use excel to track things (inefficient tbh, I know I could find something better).

Imo you’ve made an amazing start with how you prioritise things:

Bills first
Savings
Then your day-to-day money

I think this would be good to live with for a few months and see how it suits you.

After this you’ll know about adjustments and how realistically you can stick to your budget.

Imo, your next step would be to find a saving scheme with some sort of interest. Don’t be put off by numbers, 1% is still more than 0% and is free money at the end of the day.

I have three save schemes: an ISA, a savers account that’s limited in how much you can deposit but the interest is 6% and I also keep some cold hard cash (because I get tips in work).

I do this because I want a savings account that I don’t touch, a savings account for surviving for 3 months if suddenly stopped being paid and an account to save for fun stuff.

Admirable_Ad1947 OP t1_jegb41b wrote on March 31, 2023 at 8:19 PM

#2,548,453

Replying to Meewol (#2,548,107)

Thanks! Currently all my money is in cash because I don't have a bank account and for some reason my work pays me via paper check like it's 1992. My current plan is to get a savings account as soon as possible so I don't have loads of cash in a random envelope in my closet. I feel pretty confident about being able to stick to my budget though. I had a $20/month allowance for a long time so ~$50/week is still a huge improvement to me.

Meewol t1_jegf7ug wrote on March 31, 2023 at 8:47 PM

#2,549,909

Replying to Admirable_Ad1947 (#2,548,453)

That’s great!

A bank account will definitely be a big help. Not just practically but long term you’ll be able to have a base line to start your credit history with. Eg you can start paying for your phone via direct debit which will start adding to your credit score.