FAQs
What is an emergency fund, and how much should I save in it?
An emergency fund is money set aside to cover unexpected expenses, like medical bills or car repairs. It’s recommended to save 3 to 6 months’ worth of living expenses to ensure you’re fully prepared for emergencies.
What are some common financial mistakes to avoid when starting out?
Common financial mistakes to watch out for include not budgeting, relying on credit cards without repayment, not having an emergency fund, and delaying retirement savings. Avoiding these can help build a strong financial foundation early on.
Are there any good budgeting apps for beginners?
I recommend PocketGuard as a simple budgeting app that tracks income, bills, and spending. It allows you to set savings goals and receive alerts when you’re nearing budget limits. PocketGuard makes it easy for beginners to view all their finances in one place and budget accordingly.
Can I do this even with a low income?
Absolutely! Building financial stability on a low income is possible with proper budgeting and planning. Even small contributions to savings or an emergency fund add up over time. Financial health is achievable at any income level—it just takes consistency and planning.
Should I set paying off and reducing debt as a priority or saving and investing as a priority?
Well the short answer is to do both. Start with building a small emergency fund, around $500–$1,000, to avoid more debt during surprises. Then, focus on high-interest debt while continuing small contributions to savings. It’s all about balance. Though it may seem difficult planting your financial seed, even through times of debt, can make a huge impact on someone's financial success
What should I do RIGHT NOW as a college student to build financial stability?
Start by tracking your income and spending—awareness of your income is crucial. Open a savings account and aim to build a small emergency fund, even if it’s just $100 at first. Next, open up an investment account that you can contribute at least ten to twenty dollars weekly to to start investing. Avoid unnecessary debt, especially with credit cards, which you can't pay off monthly. Remember, money can compound if you manage it correctly.