Maybe your parents support you financially, maybe you have a part-time job or maybe it’s a combination of the two but chances are you’re not managing your income – I’m willing to bet any amount on it….wait….never mind. Whether it’s because you don’t care to or because you don’t know how to, this series of posts will help you learn why you should start managing your money and how to make your funds stretch a little further.

Not setting a budget. Identify what your monthly income is, how much money you need to cover your expenses and how much you want to save. What’s left over is your spending money. Staying within this simple framework will allow you to track of your cash flow.

Not keeping track of bank account balances. Does your chequing account have overdraft protection? BEWARE. Although overdraft protection keeps cheques from bouncing and allowing the occasional overdrawing of money from your account, you are likely to get hit with hefty charges for utilizing this feature. Make sure you track the funds in your account so that you don’t go below your balance. Think of your overdraft as a “just in case” feature – try not to use it and definitely don’t rely on it because what you end up paying in fees just isn’t worth it.

Letting friends pressure you into spending money. “Let’s go to this concert.” “We have to get a limo for prom.” “Let’s go to Montreal for the weekend.” Sound familiar? We spend the majority of our time with friends and they are always things going on that cost money. We’re not saying don’t have fun, but it’s important to learn to exercise restraint on spending. If your spending money for the week is all gone, you should probably pass on getting those concert tickets.

How do you manage your money? Share with us in the comments section below and don’t forget to check back soon for Part II where we reveal how you can save some $$$ with a little research!

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