Whether you just graduated from college or you're still in school, it's never too early to learn budgeting tips. As you're working to become financially independent, starting early can benefit you in the long run. Financial advisor Daren Katayama CPA LLC in Kailua Kona, HI, shares some suggestions to get started with budgeting.

How to Budget as a Young Adult

1. Determine Your Goals

Set some financial goals now so you can start working toward them. Some people want to purchase a house in five years, while others plan to retire early. With a clear and realistic goal in mind, you’ll be able to plan out your progress.

2. Look Where Your Money Goes

This can be the hardest but most rewarding task. Take a look at your bank statements from the past few months and see where funds have gone. Is most of your money going to eating out? Does your rent cost more than 30% of your income? Consider where you can make cuts to start saving a bit more. 

3. Build an Emergency Fund

Unexpected expenses will come up. Maybe you're unable to secure a job after graduation, or you have to repair your car. Instead of depleting your accounts, you should have an emergency fund dedicated to situations like these. Ideally, try to save about three to six months’ worth of your normal expenses.

4. Set Savings On Automatic

Saving money can be difficult for some, so set up automatic drafts from your bank account that send funds directly to your savings. This way, you know what's left over in your account is what you're able to spend. 

5. Speak to a Financial Consultant

If you're unsure how to budget or what accounts to open up, it can be helpful to speak to a professional. A financial advisor can set up realistic goals for you based on your income and help you plan ahead for the future. 

If you're interested in preparing for your future now and learning how to budget better, speak with a financial advisor today. Daren Katayama CPA LLA has been serving the Kailua Kona community for years as a financial consultant and accountant. Offering a variety of services, his team is ready to help you become more financially savvy from the very first meeting. To learn more about their services, visit their website or call (808) 329-6635 to set up your first consultation with a financial advisor today.