Kelly: For some reason, money has been on my mind today. I've watched friends and family struggle with balancing and managing it, myself included. What this post is about is some things that I have learned about money management. Warning: I am harshly true in some of these tips. Just wanted to let you all know. Now I am not a money expert or a financial professional. These are just some tricks, tips and advice that me who is amongst the 99% and a recent renter and caretaker of my own finances.
Use common sense: This came to mind when I first switched over cell phone companies. I used to pay $45 a month for unlimited everything. I then figured out I didn't NEED the unlimited everything. So I calculated how many minutes I used and how many texts I sent/received. Instead of continuing to pay $45 a month for my cell phone, I changed over to the $30 plan, which is 1000 everything. Boom. Simple as that. Now I save $15 a month!
If you're feeling tempted to spend extra, figure out why: Guilty a LOT! After I get off work, I hang out at a local coffee shop and wait for Holly to pick me up. It's tempting to grab that cup of the flavor of the day, that chai latte, or your no-foam triple cappucino hold the coffee and extra chocolate with 2 shots of espresso, especially when the flavor of the day is your absolute favorite!!! (I fancy hazelnut personally). Are you tempted because you're stressed out? Bored? Tired? Most of time I'm just bored and have the money to spend. Something that I do if I know I'm tempted to spend is just leave my debit card at home if I don't need to pick up anything after I get off work. Just...leave it at home. Don't need it today. Trust me...this isn't as easy as it sounds.
Set a limit: For me, I try not to go less than $100 in my bank. Again, not as easy as it sounds. I try to set this limit for a few reasons. Number 1, it gives me a good cushion to hold me over for when the next pay period comes. Number 2, I have something to use in case of an unforseen circumstance or an emergency. That way, I have coverage to go home or anywhere I need to go. But...your limit doesn't have to be $100. It can be $50, $200, $5, whatever you feel comfortable with.
Be careful and pay attention to your bank account!!! This sort of falls on the being tempted to spend. I know many of times it is extra tempting for me to spend a little bit more, but this has put me in hot water MANY times. Before I opened my bank account, my paychecks were all given to me. Well...when you have lots of extra cash just laying around, there it goes! WEEEEEE!!! 2 weeks until you next get paid and you have no money. Oops. What then? You're stuck. Dangerous cycle. Happened to me on more than one occasion. I established the set a limit rule once I opened my bank account. Also, watch for checks. For my bank sometimes it takes a few days or a few weeks to clear. Just be careful with your spending if you're waiting for a big check to clear.
You're going to have to make sacrifices. Sad truth. If you know you're short on cash, bummer. Better luck next time. This truth caused me to miss many dinner parties with my friends simply because I couldn't afford to eat out or chip in for the meal. It sucks. Big time. But there are worse things in life, and it won't last long. :)
Don't beat yourself up if you slip. It's going to happen. Another truth. Also remember, if you accidentally go over your set limit or whatever, just remember. It's ok. Often though if I went over I put myself on a self-proclaimed spending freeze until I felt I could spend money again. It was a self-punishment. And that was ok...for a little bit. Spending freezes are ok, but I've learned to not use them too often. It causes a lot of frustration and tension that is just unnecessary. But if they work for you have at it. :D I also find praying and LOTS of patience keeps me sane.
NEVER be afraid to ask for help. Another truth. Even as an apartment owner I have still had to sometimes call for mommy and daddy to help me out if I'm struggling. And again, it's ok. Ask for help before you get yourself in money troubles. If you're parents can't help, ask a friend, neighbor, or folks from church. If you don't have any friends, neighbors or a church, ask me. I'll find someone who can help you.
One last thing. Managing money is HARD. It takes time and a lot of patience. It involves sacrifices and there will be times when you will want to scream and cry. But remember, financial struggles do not have to last forever. With just a little bit of careful planning and discipline, you can make $20 go a long way. :]
Holly: Wow...ok. I was going to add a whole bunch but after reading this, I really don't have anything to add. Kelly said it all right on the money (sorry...I couldn't resist the pun). For me, I feel that sometimes I have to monitor my spending extra carefully because of an added expense I've since come to know: gas money. With the up and down prices I have to purposely budget gas money, which averages about $50 a week. When it's all said and done that's A LOT. I mean, thank God my car gets decent gas mileage.
Managing money IS hard. It's something I struggle with and I think it's something I'm going to keep struggling with. What Kelly and I have discussed doing is keeping each other accountable; admitting our slip-ups and not getting all bent out of shape over it. If you don't make a big deal about it, chances are you aren't as likely to slip up again...at least I'm speaking from personal experience. Accountability is so key here, and I think that's why so many 20-somethings just squander their money: no longer living with Mommy and Daddy and maintaining a somewhat steady income. The whole mindset of "it's my money and I can do what I want with it". That is such a DANGEROUS mindset, and it's one I used to hold to frequently.
One thing I have learned is to simply STOP worrying about money. Worrying does not solve anything and it just drives me crazy. If you stick to your discipline and keep track of your spending, then you will be fine. From a Christian perspective, God does not want us to live in financial bondage. His word says you cannot serve both God and money. How's that for perspective?
Any readers out there: if you have any money-saving tips, strategies, etc, please feel free to share them! $$
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