Entering the world after school as a young adult is a big, exciting chapter! What makes it even more exciting? Not going broke in your first week:
South Africa (23 January 2024) — Last week, we celebrated so many South Africans officially ending their high school days. The results had us pretty damn proud of the South African youth as we indulged in hope and excitement for the future ahead. But, as much as it pains us to write, it can’t all be champagne-popping and motivational quotes. As anyone who has ever been a young adult before knows, reality can hit like a ton of bricks—especially if the word ‘budgeting’ makes you roll your eyes and having your own money is a foreign concept.
First, let’s debunk some of the less-inviting parts of budgeting’s reputation because there are many:
No, it isn’t only for people with a lot of responsibilities and endless bills. Or people who are cash-strapped. Budgeting also doesn’t mean that ‘money rules your life’. Nor does it restrict your freedom—in fact, more often than not, in the long run, it’s the converse!
What it does do, is give you a grip on something that can very quickly wriggle out of control.
As a young adult who may never have had control of your own money before, getting a head start on budgeting is actually a big act of love for yourself. And taking care of yourself is something you’re going to have to get used to, so you best act with love.
Whether you’re about to start work, go to university, follow your passion by working part-time, or take a gap year on an allowance, this is the one lesson that no matter which part of your life you’re in or get to, will always stay relevant.
How to Make Your Budget Work Wonders: Young Adult Edition
1. Make Sure Your Budget is in Your Face
Your budget needs to be front of mind. Borderline annoyingly accessible. This not only helps you get comfortable with budgeting in general but will help you commit to your budget like South Africa commits to biltong during a rugby match.
Whether it’s an app (there are a dime a dozen to choose from), your phone’s notes, an Excel sheet if that speaks to you or an actual, physical notebook for the old-school lovers among us— don’t let it be something you need to go on a quest to find. Because you’ll probably avoid it for a lot longer that way.
2. Diligence is Your New Best Friend
You’re going to need to set reminders for when you create your budget and when you check in on it. Diligence is your new best friend now.
Depending on when you get paid (weekly, monthly, bi-monthly) set up a little reminder to make your budget for the period ahead. Food, miscellaneous items, entertainment, transport, self-love treats—everything you suspect you’ll spend on until you get paid again, needs to take up space in your budget.
Only you will know which expenses apply to your lifestyle, and it’ll take a few times before you get the projected figures on the nose. Still, plan for all the things. And don’t forget to leave room for your dreams. And savings. And investments.
But, the golden rule here is to be ruthlessly diligent. You are going to be the entire Springbok squad-level of diligence.
This means tracking your expenses like it’ll win the World Cup. And being very transparent with yourself; making necessary adjustments when you need to.
3. Don’t Be Boring
Give your expense categories fun names. Who needs a transport fund when you have an ‘Adventure Expenses’ fund? If you set an alarm for budget time, make the sound of the alarm a song that always gets you fired up. And if you’re working with a notebook, go to town with highlighters. Get yourself some gold stars if you need to. The world is your budget’s oyster.
4. Shift Your Energy
The biggest way to make your budget work wonders as a young adult (or any age for that matter) is to understand why you need one. Shift your energy and perspective to understand that when you’ve got your money straight, everything else becomes a lot easier. When you know what you’re in for until you get paid again, you’re actually paying yourself with freedom of mind.
You get to manage your expectations without a million surprises, and actively work your dreams into reality because you’ll understand the concept of holding yourself accountable a lot better—a life skill that will always, always serve you.
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