THE
MONEY BOOK
Okay. We get it. Everything to do with money is terrifying and it’s haunting your dreams. Let’s figure out how to get your finances under control. Take it a step at a time.
PAY OFF STUDENT LOANS OPEN A BANK ACCOUNT GO OUT ON A BUDGET TIP PROPERLY BUILD A BUDGET SYSTEM WRITE A CHECK PAY BILLS ON TIME DO YOUR TAXES KEEP UTILITIES LOW GROCERY SHOP ON A BUDGET
HOW-TO
PAY OFF STUDENT LOANS Don’t panic. This might take a while to pay back. It’s okay.
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Understand your debt, find out how much you owe. Search “student loan repayment calculator” to see your federal loans broken down.
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2 Figure out who you owe money to (federal/ private/both) and know which company is servicing your student loans.
3 Learn when payments need to start being made. Usually, there is a 6 month grace period on most federal loans.
4 Explore your options. Standard, graduated, and pay-as-you-go are the most popular options.
5 Realize you’re paying for interest no matter how long it takes.
6 Making smaller payments will increase overall cost so pay off as much as you can at once.
7 In standard plan, you will pay off loans in 10 years if you can afford it.
8 Understand that private loans will likely offer you fewer options.
9 Pay more than stated on your bill, it will help you stay ahead.
10 Budget carefully. You’ll survive.
HOW-TO
OPEN A BANK ACCOUNT Finally cutting the cord? You’ve got some great options.
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2 Note that some banks have a required minimum balance, sadly.
Examine your financial situation.
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3 Choose the right bank. Big banks are convenient & have online tools.
4 Pick a type of account (savings or checking).
5 Open an account over the phone, Internet, or in person at a bank.
6 Ask questions about monthly fees, interest rates, and transaction limits.
7 Debit cards are great. Make sure you get one.
8 Deposit your money and wait for the balance to grow!
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HOW-TO
GO OUT ON A BUDGET Are you broke? Still want to have fun with your friends?
Do your research. Look to see where the deals are ahead of time.
2 Look for specials on sites like Groupon or other online promotional coupon sites.
3 See if there’s any special events local in your town or nearby.
4 Take advantage of daily specials at restaurants, shops, and bars.
5 Pay per drink; don’t start up a tab! You’ll be able to track what you’re spending better singularly.
6 Catch happy hour for cheap alcoholic drinks and appetizers.
7 Split meals with friends; it’ll be cheaper and you won’t eat as much.
8 Drink some beverages and eat a snack before you go.
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HOW-TO
TIP PROPERLY This should be common knowledge but just as a refresher...
Waiter/Waitress < 15% Judge based on service
Delivery $2-3 Tip more in bad weather
Bartender
Barista
$1 / beer $2 / cocktail
Loose change is acceptable
Taxi Driver
Valet
10-18% of your fare
$2-4 is pretty standard
Hotel Bellman
Hair/Nails
$2 / bag $5 minimum
15-25% of bill $2-5 if you get a shampoo
HOW-TO
BUILD A BUDGET SYSTEM This way you’ll be on top of your money and know where it goes.
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Create a spreadsheet to keep track of your expenses.
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2 Add your overall income after taxes to sheet.
3 Identify all bill amounts and add to your spreadsheet.
4 Break down what youâ&#x20AC;&#x2122;re spending into categories like home, auto, food, travel and personal.
5 Identify your essential expenses like rent and food. See whatâ&#x20AC;&#x2122;s left for spending.
6 Stick to your budget and do not overspend.
HOW-TO
WRITE A CHECK One mistake might cost you money. Letâ&#x20AC;&#x2122;s get this right.
amount
date
recipient
01/14/15 Pay to
Mr. John Doe III
$ 20.50
Twenty dollars and 50/100
For
May Rent
signature
amount in word form with line until the end description
HOW-TO
PAY YOUR BILLS The due dates are given to you. Keep organized.
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Open your bills immediately when you receive them. Place together in same location.
3 Mark these due dates on your calendar so you wonâ&#x20AC;&#x2122;t forget.
5 Schedule when youâ&#x20AC;&#x2122;re going to sit down and pay your bills.
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2 Divide your bills into 2 categories (due at the beginning of the month & due mid-month)
4 Decide your payment method (autopay, online, mail, or phone)
6 If paying by mail, give your payment time to arrive by paying days in advance.
HOW-TO
DO YOUR TAXES Breathe. It’s not so scary. Let’s get you those dollars.
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2 Organize your paperwork in a pile.
You’re young. Doing taxes will be easier; your finances aren’t as complicated.
3 Make sure you have your W-2s and 1098-E forms if you started paying off student loans.
4 Keep a folder and label it. Don’t lose it!
5 Decide if you want to file manually or online using a service.
6 Fill out all information the form requires.
7 If you’re not sure if it applies, it’s okay. Just research it and try to breathe.
8 If too much for you, go to a tax consultant and have them do it for a fee.
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HOW-TO
KEEP UTILITIES LOW You’re actually paying for your heat and water.
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Keep your air conditioning/heat vents open and clear. Double check that they’re open. It’s a common mistake.
2 Wash your laundry on the cold setting to save heat. Plus it’s better for your clothes.
3 Do laundry after 8:00 pm. Power companies have lower rates at this time.
4 Always unplug small electronics when you’re done using them.
5 For larger electronics, connect all to a power strip and turn off the strip when done. These require the most power.
6 Shorten your showers to cut hot water costs.
HOW-TO
GROCERY SHOP ON A BUDGET No need for coupons, just plan accordingly.
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Determine your budget per month on what you realistically can spend.
• mil k • eggs • bread
2 Decide what you need with a grocery list.
3 Look what’s on sale and stick to most of those for the most savings.
4 Plan your weekly meals based on what’s on sale.
5 Purchase only items that are on your list!
6 Buy store brand or generic groceries, they’re just as good.
7 Learn which stores have regular specials.
8 Buy in bulk on items you regularly use.
9 Stock when there’s a sale, but don’t overstock.
10 Budget per month, but plan per week.
One Step at a Time