A multitude of people can come to the conclusion that the saying is true: money does make the world go ‘round. Therefore, imagine the possibilities when weaponizing your smart spending and saving techniques to benefit your wallet and your overall lifestyle. 

 The majority of children, college students, and adults alike seem to have money problems and inconsistencies in some form or fashion. While some individuals excel at saving money, others are the complete opposite and the moment that they obtain any sum of income, it burns a hole in their pocket. 

 Regardless of whether someone is a smart or senseless spender, it would be in many people’s best interest to thoroughly analyze their habits to form a financial system that is optimal for their personal wellbeing. 

“If you want good financial habits, you must start developing them while you are in college. College is a time of exploration, learning, and growth,” staff writer for the Forbes website, Jim Wang, urged. “It is also a time when most of your financial life is still in training wheels. If you live in campus housing and are on the meal plan, two of your biggest financial line items are settled – room and board. This means you are managing a budget that is far easier than it will be once you graduate. These are the times you can set in stone those good financial habits that will serve you well after graduation.”

 While many individuals who take classes through the Tarleton State University system are residential students, there is also an equally – if not larger – population of students who are commuters who do not have the luxury or convenience of a provided meal plan and board. For these commuter students, it is of the utmost importance to obtain control over damaging spending behaviors, or they run the risk of falling into severe financial duress. 

 Though it is intimidating to break off bad habits and substitute them with more desirable ones, there are three main hallmarks of a commendable financial lifestyle: understand yourself and your economic motivations, start and maintain a budget, and avoid debt while building credit. 

These three trademarks are the starting points of a prosperous and healthy relationship with your finances. 

To start, it is important to understand yourself and your financial motivations, which might sound like an easy task to most people. However, when dealing with wealth, individuals must analyze spending behaviors and money habits on a much more physiological and psychological level than what may seem. 

“Every single day, you have the power to make decisions that will move you forward financially or set you back. Knowing your strengths, trouble spots, and tendencies is key to using them to your advantage,” contributor for the Ramsey Solutions website, Rachel Cruze, explained. 

While some people indulge in retail therapy – which is an extremely bad habit in need of reconciling – others may be chronic impulse shoppers who spend large sums of money spontaneously. 

Early on in a person’s journey to fostering better financial conduct, it is crucial to understand where they fall on the spectrum of spending, and how they can alter their current methods to create a more ideal economic situation for themselves. 

While discovering the truth about an individual’s money management, they are most likely to unveil facets with regards to themselves that they were completely oblivious to beforehand, which is a worthwhile concept for much more than the idea of personal financial competence.

 Budgeting has long since been a helpful method of money management, but nonetheless, it has evolved into an activity that some people actually enjoy despite its daunting nature. 

 “A budget is a plan that helps you manage your money. It shows you how much money you have, how much money you need to spend on different things, and how much money you can save or use for other goals. A budget can help you make smart decisions with your money and avoid problems like overspending, debt, or running out of money,” the Khan Academy website clarified. 

 As expected, money is a finite, varying resource that comes and goes. When you are able to plan out and visually comprehend where  and what  your paycheck is going to, it can cultivate peace-of-mind relative to where every cent of your hard-earned money goes. So whether your budget is assembled on paper, through an app, or on a spreadsheet, it is vital to refer to it frequently and attempt to abide by its rules. 

 The last – but perhaps the most important – aspect of smart financial oversight is delivered in the form of an incredibly simple yet intimidating concept: stay out of debt. 

 Debt is typically known as the act of owing money to another party; in some cases the debt owed might be other tangible items that are owed to another as well.

Knowingly, there are several ways people accumulate debt, such as student loans, credit cards, impulsivity, a lack of money management skills, inadequate savings, or even unforeseen emergencies. 

“As you have probably already figured out, debt plays a big part in your financial life. Not only does it affect your spending ability, but it also has a direct impact on your credit score and a direct impact on your ability to borrow money or pay a low insurance rate,” writer for The Balance Money website, LaToya Irby expressed. “The amount of debt you have is one of the biggest factors that go into your credit score. Carrying a lot of debt, especially high credit card debt, hurts your credit score and your ability to get approved for new credit cards, loans, and an increased credit limit.” 

Without a doubt, it is going to take an incredible amount of learning, discipline, and labor to break free of any unacceptable financial behaviors and replace them with more beneficial and virtuous habits. 

“Many people mistakenly attribute their bad habits to character flaws such as laziness or lack of self-discipline,” contributor for the Psychology Today website, Dr. Thomas Rutledge, explained. “The real reason that bad habits thrive is because they produce immediate reinforcement. Most good habits do not naturally provide immediate reinforcement. However, people can learn to create their own sources of reinforcement.” 

Rather than attempting to solve every economic obstacle simultaneously, it is important to take a gradual approach; taking one step at a time, while highlighting newfound positive practices with gratifying reinforcement when the occasion arises.

 For information regarding smarter spending habits and how to start budgeting, please visit www.forbes.com/sites/jimwang/2019/10/09/6-crucial-money-tips-for-college-students/?sh=b6044f43aaf0 and www.cnbc.com/2021/02/01/heres-what-college-students-need-to-know-about-making-a-budget.html#:~:text=Here%E2%80%99s%20what%20college%20students%20need%20to%20know%20about,5.%20Stop%20comparing%20yourself%20to%20other%20people.%20.