Hello, lovelies. Now that we’re nearing the end of the year, I’ve been spending time reviewing my 2018 goals. One of the biggest goals I accomplished this year was financial stability.
Keep in mind, I’m using the term “financial stability” very lightly here. I’m a college student, so my definition of financial stability is a bit more lax. When I set this goal back in January, I wanted to have the means and stability to move out in 2019. I ended up fulfilling that goal and moved out in August, so needless to say, there has been progress.
Everyone’s definition of financial stability is different. For me, it was to stop stressing about money. I knew that I didn’t have to worry about money because my parents would provide for me, but I didn’t want them to. If my parents were to ever cut me off (which they would never do), I wanted to be able to fend for myself without too many hiccups.
Now that it’s December, I’m happy to say that I don’t stress about money anymore. I know what’s coming in and what’s going out and how to live within my means. I’ve always been frugal, but I’ve never been as on top of my money as I am now. There are plenty of little things I did this year to improve my financial life, but here are the top five things that stand out.
//I Started Building My Credit
This was one of the first things I did. Prior to this year, I had zero credit to my name. I never had a credit card, taken out a student loan, or taken out a car loan. As far as creditors were concerned, I didn’t exist.
This is actually pretty common. Many college students graduate without any credit to their name. This is better than having bad credit, which is something the previous generation of college students had to deal with. Many people my age avoid credit cards like the plague because they’ve heard so many horror stories.
I knew that it was important to start building credit because it would be checked regularly after I graduate, whether it was for renting an apartment or buying a car. In fact, prospective employers may end up checking my credit when hiring me in the future.
The first thing I did was apply for a credit card. This was one of the most nerve-wracking things on this list because I, like many others, had been warned against getting a credit card. I got approved immediately and started using it about a month after. I paid my credit card bill in full on time every month, so my credit fell into the “good” range very quickly.
In August, I took out a student loan to pay for my dorm and have been slowly paying it off. My credit score went up by 10 points. This is because I had multiple lines of credit. In the next few weeks, I plan on getting another credit card so that I’ll have another line of credit going. It will drop my credit score at first but will help build my credit in the long run.
I went more in depth in the post below. I suggest you give it a read.
Related – Why I Decided To Get A Credit Card In College
//I Opened My Own Bank Account
This actually took me a long time to do. I’ve had a bank account for years, but it’s the one my mom opened for me when I was seventeen. I didn’t have to pay any fees, which is why I kept my money there for so long. At the beginning of this year, I planned on opening my own bank account because I wanted to be in control of all my money.
This didn’t end up happening until October, (I was busy, okay) but I finally made time to go to the bank and meet with a banker to open an account. I opened one checking and two savings account. One of the savings accounts is my designated emergency fund. It contains about three months worth of monthly expenses. The other one is just general savings for things like travel and post-grad expenses.
//I Tracked My Income And Expenses
I’ve always been good at saving money. I just haven’t been very good at keeping track of it. Prior to this year, I didn’t keep track of my income or expenses, at all. This is because I lived at home and didn’t have any real expenses. I rarely spent money anyway, so anything I didn’t spend went straight into savings. Since I was already putting so much of my income into savings, the money that I did spend didn’t account for much.
My dad did my taxes in February because self-employment taxes are no joke, and I quickly recognized that I needed a better system when it came to tracking my income. I started tracking just my income in April, then started including my expenses in the same spreadsheet in May. It has been a LIFE CHANGER. I can easily notice deviations in income from month to month and I can guilt myself out of wasting money by reminding myself of the spreadsheet. It also helps me analyze whether an expense is worth it or not.
This habit had definitely helped me organize my finances this year and has played a hand in my lack of anxiety when it comes to money.
Related
//I Increased My Income
This is definitely the biggest factor in my financial stability. There were a few business goals that I didn’t share on my 2018 goals post at the beginning of this year, but I accomplished those, too. I have been making a much more consistent income, especially in the latter half of the year. I’ve been self-employed since starting college and my income has fluctuated a lot in the past two years. I work with special needs kids and have had a huge influx of students thanks to a lot of marketing, so this has helped a lot with my financial goals.
I don’t make an excessive amount of money. I am by no means rich, but I have enough money to live on my own and put money in savings without working 20+ hours a week as many college students have to do. At the beginning of this year, my goal was to save enough money to move out in 2019 and making a consistent liveable income has allowed me to do that six months early.
//I Created A Budget
Prior to moving out, I didn’t have a set budget. It wasn’t really necessary because I lived at home and commuted to college. This allowed me to focus on my studies and grow my business, while still being able to save money. After moving to a dorm, I created a very detailed budget to keep me on track. I’ll link that below:
Related – My College Budget Under $750
I think I’ll have to update that because, after a few months, I’ve managed to lower the amount of money I spend each month. Some of my expenses ended up being lower than I estimated, which has decreased my budgeted amount for certain categories. The leftover money goes towards saving.
Related – How To Budget In College When You Live At Home
I guess that’s it. Those are the top five things I did to become financially stable this year. I am very thankful to have accomplished this goal. It was a lot of work and I am very lucky to be in the position I am in. I hope this post has inspires you to take control of your finances in 2019. I’ll see you next time.
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What financial goals have you accomplished this year? What are your goals for next year?