It feels challenging to tackle the world for the first time, but those challenges can feel more difficult if you are forced to confront the world on your own. A 22-year-old college student's mother recently passed away from cancer. A co-worker graciously let the 22-year-old move in, and the original poster wants to make the most of the co-worker's helping hand.
The 22-year-old spends $450 per month. That includes school, phone bills, car payments, and car insurance. The 22-year-old currently earns around $600 to $700 every two weeks from working two jobs and turned to Reddit for advice on making more money and building up their finances.
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Do Not Get A Credit Card
Multiple Redditors told the 22-year-old to avoid taking out any credit cards. These cards can offer immediate financial relief, but the interest and fees can put the young college student into a deeper financial hole.
"Do not get a credit card. Do not use debt to cover expenses at all," one commenter said.
"Do not pile debt on a credit card unless you pay it off every month, on time, before the due date, so you have no interest accrued on the card. Interest on cards is outrageous and will quickly drown you," another commenter said.
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Create A Budget
Although the 22-year-old mentioned $450 in fixed monthly expenses, there are some variable costs like groceries and gas. These expenses come up each month but are more difficult to predict. Ultimately, these costs lead to the 22-year-old having to borrow money or incur overdraft fees.
One Redditor suggested creating a budget and knowing where your money goes. That way, the Redditor may discover ways that they are using money less effectively. For instance, it is possible to replace a streaming subscription with renting movies from your local library.
"Track every dollar. Write it down daily," the commenter suggested.
The commenter suggested dropping the phone plan if possible and looking for other ways to cut costs. Another Redditor suggested selling the car and using public transportation if it's cheaper. A budget and cutting costs can provide extra wiggle room. It's not life-changing, but it can put an end to overdraft fees and having to borrow money.
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Boost Your Income
While the other strategies build a financial base, boosting your income is ultimately the best route out of these financial obstacles. The same commenter who encouraged the 22-year-old to write down every expense also suggested working more hours, finding side work, or getting a campus job.
Online jobs and side hustles can provide extra income, and you can perform some of these tasks at more flexible hours. Pursuing these options can also develop your career skills so you can earn a higher income.
"The hard answer is that your income needs to be greater than expenses," one commenter said.
Costs will go up. The Redditor is expected to pay rent in the next month and may have to contend with student loans upon graduating. We don't know those details. It is a tough situation, but the 22-year-old has to focus on building their income in the long run. Reading a personal finance book each month from the library and watching finance videos can be helpful, as the Redditor can learn new things about money management and discover how wealthy people stay on top of their finances. You become the average of the five people who you spend the most time with, and what you choose to learn also plays a key role in your development.
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