What is your greatest challenge in managing your money now and in the future?
My greatest challenge in managing my money now is that I have to try to save money for facilities and bills and stuff, not just spend it on unnecessary supplies. It is crucial for me to help my parents with in providing them with income which they can use to. That is the same with the future.
what else can i add in?
Saving money and budgeting for paying bills, etc., are two different things. What you probably need to write about is budgeting your money well so that all bills are taken care of and so that you are putting some money aside, maybe in a savings account. Current recommendations are that a person should have enough saved to handle at least 3 months' (or 4 months' or 6 months') worth of bills and other needs.
The concept is the same, whether you are helping your parents with their expenses or living on your own. Budget your funds so that you 1) save/invest and 2) take care of needs (utilities, rent/mortgage, etc.) ... and then if there's anything left over, figure out how you'll spend that -- or maybe you'll decide to save it, too.
Needs and savings/investments come first; "wants" come later!
So for career as well, university, hve to try to save it for that?
Exactly.
Alright, thanks a lot:)
You're welcome.
In addition to your current challenges, you can consider mentioning the following:
1. Setting financial goals: Clearly defining your short-term and long-term financial goals can be a challenge. It’s important to identify what you want to achieve with your money, such as saving for a down payment on a house or planning for retirement.
2. Budgeting and tracking expenses: Managing your income and expenses can be difficult without a budget. Creating a budget allows you to plan your spending, prioritize your financial goals, and track your progress.
3. Dealing with unexpected expenses: Life is unpredictable, and unexpected expenses can arise, such as medical emergencies or car repairs. Finding ways to build an emergency fund can help you handle these situations without derailing your financial plans.
4. Balancing saving and investing: It can be challenging to determine how much of your income you should save and how much to invest. Understanding the basics of investing and finding the right balance between saving and investing can be crucial for your financial growth.
5. Managing debts: If you have debts, such as student loans or credit card balances, managing them effectively can be a challenge. Prioritizing debt repayment strategies and avoiding excessive borrowing can help you stay on track.
6. Staying disciplined and avoiding impulse purchases: Practicing self-control and avoiding unnecessary spending can be difficult, especially with the constant availability of online shopping and advertising. Developing good spending habits and resisting temptations can contribute to better financial management.
Remember, acknowledging your challenges is the first step towards finding solutions and improving your financial situation.