This is the first of a series of articles to help you be a saver not a “week by week-er”.

 Budgeting for many people is hard to do and not very exciting.  Yet living from week to week financially is very stressful and can be easily avoided.

 Simply put, everyone needs to live with-in their means and have a budget. It can be simple and is really just habit.

As I write this, I am working out what to pay my 16 y o daughter for washing the cars on the weekend. She knows the rules, when she gets paid- save half and spend half. The spend half she also needs permission on what she can buy. Sounds tough you say, well she is a 16yo girl with $200 in her wallet and $300 in her piggy bank ready to be banked and a share portfolio (and yes a social life).

The world of Gen Y finances is unique. People of the minute, are a generation unsuited to thinking of the long-term and are definitely unused to the idea of saving for the long-term. Or at least half are. According to a survey conducted by the American Savings Education Council, 51% of American youth are saving for a long-term goal. I would assume the number is fairly similar in Australia¹.

There is no need to add yet another article to the pile of harping missives trying to frighten ‘young people these days’, talking about superannuation and recessions and financial security. Instead, let’s look at what you can do today so when tomorrow arrives (and yes, I know we’re all immortal and there is no such thing as tomorrow and we’ll never get old. Noted), when tomorrow arrives, you will be financially prepared for it.

Some basic tips:

Overestimate your spending when you budget

• MSN Money suggests this is a great place to start. Taking into account a youthful proclivity to forgetting the true cost of living, the article suggests that you set your expenses high and you will end up with cash left over, as opposed to having to use your credit card to cover the unexpected costs incurred month to month.
• In your financial journal or budget have two columns. One for expected spending, one for actual costs. You’re aiming to have the actual costs smaller than the amount you budgeted for. That way you’ve got a bit of emergency financial fat, and an amount you can add into your savings account on a regular basis.

Pay yourself first (this mean save first)

• Out of sight, out of mind. Gen Y is constantly confronted with a new distraction and thinking of the next thing, so why not use that mindset to your financial benefit? Don’t just save whatever is leftover at the end of every week, as recommended above, but also put aside some savings straight up. As soon as your income comes in, set up a direct debit into a savings account.
• Don’t do it manually as, while you might be disciplined today, it may desert you tomorrow. Do it first, and you won’t even miss the money.

Spend cash – avoid the plastic credit card.