We’ve all heard this saying before, but its true! From my college years and now in post-grad life, I’ve realized just how essential it is to save. You just never know what might happen that could end up being a significant expense. Maybe your computer crashes and is beyond repair. Maybe you have an unexpected ER visit. Whatever the case may be, its never a good feeling to be strapped for cash. Always live within your means is one lesson my father always told me. Some of my friends and classmates may have nice things, but you just never know who is drowning in credit card debt.
My tips? They are simple, but effective:
- Write down everything and anything you spend money on. From rent and utilities to that $4 coffee (note: especially that coffee as that can turn out to be a huge expense over time).
- Categorize your expenses and set a budget for each category, e.g., set a $150 budget for groceries each month. You can adjust your budgets over time once you see where you can spend less or may need to spend more.
- At the end of each month, highlight all of your unnecessary expenses, and note where you can avoid these in the coming month.
- Live by the 1/3 rule: spend 1/3 of your income on necessary living expenses like rent and utilities, put 1/3 in your savings account and then use the last 1/3 for more flexible expenses such as groceries, restaurants, shopping and entertainment.
- Keep the change! Seriously! During a particularly financially tight time in college, I counted up all the change I had been saving in a jar in my apartment and it turned out to be around $50. This may seem small, but it really adds up. Don’t leave that money on the table.
When looking to splurge or thinking about a bigger ticket item, make sure it is premeditated for at least a couple of weeks. Whenever I really want to buy something, I try to wait to see if I still really want/need (however defined for the particular item) in another week. I’ve been in the market for a new wallet for a few months now. I bought a gold metallic Michael Kors wallet about 4 years ago during my first real internship and have been using it ever since. Its definitely been through the ringer, and I know its time for a new one. Here are a few I’ve had my eye on recently. I particularly like the Kate Spade Cobble Hill – Stacy Wallet in Mint Mojito (7) for its slim and sleek design. I tend to throw all kinds of things in my wallet: to do lists, lots of receipts, a checkbook, key fobs, who knows…but it can end up being pretty heavy to lug around! I’m thinking a slimmer wallet will help me avoid all the clutter (and extra weight!) that is in my wallet now!
1 Veau Continental Wallet // 2 Robinson Metallic Zip Continental Wallet // 3 Robinson Printed Zip Continental Wallet // 4 York Zip Passport Continental Wallet // 5 Southside Clutch // 6 Cobble Hill – Stacy Wallet // 7 Branton Square – Lacey Zip Around Wallet // 8 Jet Set Continental Wallet
xoxo
