We all want to live on the hill with a perfect view, but not all of us can afford a road ninja travel app. Many of us have to settle for a more affordable home and live paycheck-to-paycheck. To make matters worse, we often get off track by spending more than what we can afford or by underestimating our needs.

1. Think about your finances

From the moment we are born, we start earning money. When you were a kid, you got an allowance. When you became a teenager and started working part-time jobs, your income went up. Before you reach the age of 18 years old, most people have spent thousands of dollars. The key question we have to ask ourselves is “Are these expenses essential or can I live without them?” Life gets more complex when you are driving a car, going to school and spending even more money on entertainment.

2. Create a budget

A budget is basically a list of expenses in relation to the income you get in order to pay for the necessities first and then some more that will make up for the extras.

3. Create a realistic budget

You can’t ever hope to make your expenses match your income if you don’t know what you are spending money on. A good way to start is to sit down and write down everything you spend money on. Next, put the list away for a few days then pull it out again and see where you can cut down the expenses without sacrificing your needs. You should be able to easily spot things such as:

A) Eating out too often,

B) Your cell phone bill is too high or

C) The amount of money you spend on entertainment or things that will never have value in the future, like gambling or pornography.  

4. Evaluate your initial budget

After you have a good idea about how much money you can realistically save each month, check your budget and make adjustments and amendments. Is there anything that you have cut down on without knowing? Are there any expenses that will never change? Also, think about the things that stop you from saving more. Can you adjust your lifestyle to fit into your budgeted expenses?

5. Start saving with an emergency fund

Once you get comfortable with your bills and savings, it’s time to think of our long-term goals. In order to reach these goals, we need an emergency fund coupled with a long-term goal to achieve.

A) Emergency fund

An emergency fund is a safety net that will help you keep afloat if you are ever faced with an unforeseen and unexpected expense. Every month, you should put aside a specific amount of money that will go towards this fund. Once the fund has accumulated enough money, it becomes easier to save the rest of your income.

6. Set up your long-term goal(s)

When we set our goals, it’s at one point in the future. For example, I want to be a millionaire by the time I’m 40 years old and move somewhere else when I turn 65 years old. These are very long-term goals. Long-term goals can be broken into several categories such as:

A) Get a better job,

B) Study for a degree,

C) Start my own business and/or

D) Move to another country or continent.  For example, if you have been driving the same car for 3 years, change it up. Upgrade to something new and pay off the car in full. This is an important step because you will immediately save more money on gas and maintenance costs. If you want to invest in the stock market or start your own business, make sure they are legal in your country of choice before taking any step forward.

7. Start saving on the essential things

Once you have built up enough money to invest in another hobby or your business, start saving on the things that make up for daily expenses such as insurance and basic needs.

8. Keep on saving

It’s very easy to get stuck at this stage and forget about our long-term goals. It’s important to finish saving your income so it can be invested elsewhere but it is also wise to save some of it so you will always have a safety net when unexpected expenses come along. As long as we are smart with our finances, the future becomes brighter and brighter every day.


The article was simply the introduction to your new financial life. Don’t forget to save money and invest your money on a monthly basis. Do not make the mistake of making a huge purchase and investing in risky businesses and start-ups. Be wise and continue being wise from now on by maintaining a budget and sticking to it at every step! Go ahead and take this advice for what it’s worth, and remember that things change, so adjust accordingly. If you are successful in your first attempts at making money, you might want to buy yourself a book that goes into more detail about investing (even if you didn’t read this one!) Good luck with your finances!


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