Monthly Insights
A quick hitting financial insight to build better financial habits.
by Daniel Heidel on December 2nd, 2024
Basic Budgeting Tips for Young Professionals
I know everyone is dying to read about better budgeting habits but your parents have been nagging you for months now and you know that it is actually something you need to be doing deep down. That’s ok, even I don’t enjoy the practice of budgeting but it is a necessary step in the financial planning process to set your foundation for savings. Don’t worry, I’m not going to harp on your spending at Zara or your coffee addiction. If you are able to cover your financial responsibilities and have a good savings rate, then spend as your conscience will allow you.
Starting your career is exciting, but it also means it’s time to get serious about budgeting. With a new salary comes new responsibilities, so let’s set a solid financial foundation.
Begin by tracking your income and expenses. Use apps or spreadsheets to get a clear picture of where your money goes. Break it down into categories: essentials (rent, utilities, groceries), savings, and discretionary spending. Aim for the 50/30/20 rule—50% on needs, 30% on wants, and 20% for savings.
Now tracking your expenses can be painful for many. So if you’re not an engineer, no offense engineers - you are just incredibly analytical and love these types of things, consider using the “pay yourself” system. Many people can go into their payment portals and automate savings to different places. This means that you can have a set contribution percentage going to your 401(k), money going straight to your emergency fund, and money going to your investment account. If you set your paycheck to first flow to your savings accounts before it hits your checking account, then you will be less likely to have a budgeting issue.
Don’t forget about setting aside funds for irregular expenses like car maintenance or medical bills. Creating an “emergency fund” can also help cover unexpected costs without derailing your budget. As a young professional starting out, you should aim to save 3-6 months of your living expenses. Find a high yield savings account to earn some interest while also having liquid accessibility to these funds.
If your salary increases, consider if you need to increase your lifestyle. It would be wise to increase your savings rates rather than level up your living expenses, but sometimes early on in your career it makes sense to get rid of the old beat up car that needs a jump every cold morning or get out of the noisy apartment where you are hardly sleeping and into a better place where you can focus and get your beauty rest.
Remember, budgeting isn’t restrictive; it empowers you to make informed decisions. You’ve got this! Use the link below to schedule a brief meeting with me or explore the free planning software on my website.
Click here to book a free consultation
Integritas Wealth Strategies, LLC
iw-strategies.com
This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.
The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of Integritas Wealth Strategies, LLC providing such comments, and should not be regarded the views of Integritas Wealth Strategies, LLC or its respective affiliates or as a description of advisory services provided by Integritas Wealth Strategies, LLC or performance returns of any Integritas Wealth Strategies, LLC client.
References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.
Any opinions expressed herein do not constitute or imply endorsement, sponsorship, or recommendation by Integritas Wealth Strategies, LLC. Integritas Wealth Strategies, LLC and its affiliates may invest in any technology company discussed. The views reflected in the commentary are subject to change at any time without notice.
Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. It also should not be construed as an offer soliciting the purchase or sale of any security mentioned. Nor should it be construed as an offer to provide investment advisory services by Integritas Wealth Strategies, LLC.
Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Integritas Wealth Strategies, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
Any charts provided here or on any related Integritas Wealth Strategies, LLC personnel content outlets are for informational purposes only, and should also not be relied upon when making any investment decision. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Information in charts have been obtained from third-party sources and data, and may include those from portfolio securities of funds managed by Integritas Wealth Strategies, LLC. While taken from sources believed to be reliable, Integritas Wealth Strategies, LLC has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, posts may include third-party advertisements; Integritas Wealth Strategies, LLC has not reviewed such advertisements and does not endorse any advertising content contained therein. All content speaks only as of the date indicated.
Integritas Wealth Strategies, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Integritas Wealth Strategies, LLC and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Integritas Wealth Strategies, LLC unless a client service agreement is in place. Integritas Wealth Strategies, LLC its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.