Life: The Sequel - Step 2

Learn Who You are - Money-Wise

Now that you have figured out where you’re headed (at least for the short-term) it’s time to figure out who you really are – from a money perspective. For example:

• Do you pay a premium to get the latest and greatest electronics?
• Do you shop when you’re bored or blue?
• OR do you save every penny and forego all fun and luxury?

You may have guessed it, but falling somewhere in between “super spender” and “stingy saver” is a good way to go (because while saving money is important, life experience and overall happiness is also kind of critical too). So as you begin your new life, take 5 minutes to figure out your money-related strengths and weaknesses – because as you begin to earn more money, you’ll ultimately start to spend more money. Now is the time to tap into your inner financial self and make sure you have a healthy perspective and good habits that can keep you in strong financial shape now and down the road.

How to connect with your inner financial self:

• Track your spending. We recommend doing this for about a month. Use a notepad, the memo feature on your phone, or a marker on your forearm. There are even some great apps and software, including myFinanceTracker that make it easy and painless.
• Don’t leave anything out! Even that fancy shmancy coffee you don’t think about every day. It might seem small, but it’s those kinds of things that can really add up.
• Check your closet. Are there a bunch of items in there that you’ve barely worn? Or never? This might be a sign that you buy things you don’t really need. Next time you’re out, try to resist the urge to make an unnecessary purchase.
• Look at your gadget collection. Do you have a bunch of games or devices you’ve hardly used? Sure, you may like being on the cutting edge of technology, but right now you may need to adopt a “wait and see” approach to see what you can actually use before you buy.