1. Create a Savings Account

It is important to create a savings account. This will allow you to slowly build up a financial foundation that will help you begin your journey of becoming independent. This savings could be toward anything: college, a house, a car, or a general goal of saving for your entire future if you don't have a specific goal in mind. A savings account could also help you if your checking account is running low! A savings account will teach you how to save money and how much money to save. There are different things and ways that people save and to be a successful saver, categories should be created.

2. Create categories

Categories are a simple, yet efficient way to organize a way to save. Create different categories in which you need and want to spend and save on. These categories could include school, car, rent, insurance, food, outings with friends, etc. This will allow you to have a consistent plan in how you are going to achieve your end goal. Figure out the amount that you need to save for what is necessary then trickle down to your wants. This way of listing can help you prioritize and not make a financial mistake that cane hurt you even more in the end.

3. 50 30 20 Rule

Finances can be confusing, stressful, and straight up annoying. If you haven't heard of the 50 30 20 rule, it is just a simplistic way of dividing your finances through percentages. 50% of your finances go toward your main necessities such as your housing, insurance, food, etc. 30% of that money can go toward your wants like any entertainment or outings with your friends. Finally, at least 20% should go into your savings.

Of course, if you would want to save more and spend less, you can switch and spend 20% of your finances on your wants and save 30%. Regardless, it is so important to save what you make. As you get older, your priorities will switch, and you will learn that saving for that house or car is way more important than that hamburger. I am not saying don't go out with your friends, but make sure that you don't blow all your money out the window. the 50 30 20 rule will really help and relieve a lot of stress.

4. Pay off credit card

If you have a credit card, you know how stressful and anxious the time is when there is a huge amount on your credit card. It is important to pay it off in a timely manner, so interest does not build up AND YOU DON'T GO BANKRUPT. Do not spend more then what you have in your checking account. Do it if you must, but that also comes with huge risk. You do not ever want to overspend and by the time the bill is due, there is not enough money in your checking account to pay it off. You might be thinking, "What about the savings account?" It is important not to touch that unless you absolutely must pull out money. Keep in mind, whatever is pulled out of savings, you will have to make that up to reach your goal.