
Image via Carly Jane1 @ Flickr
In preparation for today’s post I made a simple Google search for “Gen Y Money”. You know, to get a feel for what people are writing about us.
Boy, are we a popular topic of discussion! Headlines like Why Gen Y is Broke, Why Gen Y Might Never Retire, and Gen Y’s Money Woes are all over the web!
And yes, I must agree with the fact that many of us are completely irresponsible with our money. Hell, it wasn’t until recently when I stopped running up bar tabs and actually started putting money into savings accounts.
However, our financial woes are not solely rooted in our inability to save money. Sure, our wasteful habits and dire need to have the coolest new gadgets play a major role in our financial turmoil, but we also happen to be coming into adulthood during a major recession.
Non-paying internships have taken the place of entry-level jobs, people are drowning themselves in debt over school more than ever before, part-times and self-employed endeavors are the new ways to stay afloat, there is no longer job security, and employers are cutting back on benefits left and right.
Mix this with our general abhorrence toward corporate jobs and cubicles and you’ve got a generation that is going to be seeing a slew of problems that our predecessors didn’t. Or, as I prefer to think of it, you’re going to have a generation of people who get creative because they have no choice.
Not all is lost though, there are steps that you can take this year in order to start getting your finances in order.
1. Learn about your taxes.
I had a near heart attack yesterday when my 1099s started coming in from my freelance work. It was at that moment when I realized I know almost nothing about taxes for self-employed individuals (Although now I have learned that we get screwed more than the average person, more on that some other time). Even worse, I know nothing about taxes when you actually have a job in addition to being a self-employed individual. Alas, the things they don’t teach you in school.
This year, take some time to sit down well before April 15th and learn about your tax situation. Ask your parents how to sort out the numbers mess; after all, they’ve (hopefully) been paying taxes for years. Or, if you must, find yourself a good accountant. Whoever you decide to ask, make it a priority to find out how much you may owe Uncle Sam and why.
2. Take a look at your bills.
I know that many of you probably cringe every time you see that credit card bill in your mailbox; although, you probably don’t cringe as much as you do when those student loan payments come around. Add that to car payments, rent, groceries, cell phones, insurance, and whatever else you may have and you probably avoid looking at those bills for as long as you possibly can. As much as it may pain you to open those envelopes, I urge you not to wait until the last minute to pay your bills.
Take an afternoon to organize your bills and see exactly where your money is going. The Simple Dollar has a great guide you can follow to help get organized, 31 Days to Fixing Your Finances.
3. Make a budget.
I remember the first time someone told me to make a budget. I looked at them quizzically and said, “Oh yeah? And how the hell do I do that, slick?”
Making a budget is another one of those things they aren’t going to teach you in school and you basically have to figure out on your own. You can use a myriad of free online tools, catch up with Suze Orman, or use some good old fashioned pen and paper.
The point is that you have to make a budget that works with your particular situation. After you have gotten all your bills in order, you can start allocating your money appropriately.
I know this can all be somewhat overwhelming, so here are some resources from across the web to get you started.
Grad Meets World:
5 Tools for the First Time Budget
Young, Fabulous, and Broke (and my ode to Suze Orman)
The Book Every Freelancer, Part-Timer, and Self-Employed Individual Should Read
5 Money Saving Tactics for Gen Y
10 Tips to Live Debt Free On a 25k Salary
Across The Web:
Life After College – 4 Step Budget
Budgets Are Sexy – Best Free Online Budget Templates (Goldmine!!!)
Gen Y Wealth – Financial Freedom Blueprint
Gen Y Wealth – 20 Financial Milestones You Want to Reach in Your 20s
The Simple Dollar – 31 Days to Fixing Your Finances
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Thanks so much for the shout-out, Amanda! Hope you’re having a great weekend. By the way — I’d love to send you an advance copy of my book…please fill out this form when you get a chance! http://bit.ly/frIuFT
JENNY BLAKE YOU JUST MADE MY DAY AND IT’S NOT EVEN NOON YET!
I can’t wait to see what awesomeness and pearls of wisdom are in your book!
Hey! I found your blog on 20sb! Can’t wait to connect. LOVE this post- great tips on how to save money, I definitely like to think I’m only in debt because of student loans although I know many of my peers are in debt due to iPads and smart phones
. Good luck with your taxes, I will definitely be trying to understand mine a little better this year as well.
I’m glad you liked the post!!!!
Thanks for the mention Amanda.
I’ll have to check out those other resources on Gen Y as well.
And btw, the more you learn about taxes for self-employed, the more you’ll start to like them. (:
I hope so! I just got a lesson on April 15