Financial Literacy
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Thread Starter
Join Date: Sep 2004
Location: Second star to the right....
Posts: 845
Financial Literacy
Hey, need your help on how you handle money. I find im struggling to stick to a budget with my finances and save. ive had a full time job for a while now (thanks be to god) and the income is still feeling new to me, i feel like when I have money, I just have to spend it. ill spend it on music or junk food and if its in savings account, well i just withdraw it....i dont respect it do it?.....any tips or whatever on how you handle money and finances?? any help appreciated. cheers.
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Join Date: Sep 2008
Location: Anywhere but the mainstream.
Posts: 402
I've been VERY lucky to have a mom who was very frugal. She counted everything, and so for a long time so did I. I wrote down everything I was spending - groceries, take-out, clothes, bills, you name it. I put it in a daily planner, then at the end of the month tallied everything up. It gave me a really good idea of how much of my paycheck was already spoken for by necessities (hydro, electricity, groceries). I don't need to keep crazy records anymore, cause I already have an idea of how much I'll have left over after bills each month. The rest usually gets moderately splurged, then put away.
One thing you need to absolutely figure out is what is "necessities" and what isn't. Bills, rent, and groceries are my necessities. I can't live for a month without those paid for. Everything else is bonus. Take-out, CDs, clothes are not necessities.
If you absolutely want to save money, add an amount to your "necessities". Or set up a savings account with your bank so that it automatically takes $100 out of your main account each month. That way you don't even miss the cash you'd be prone to spending. Plus the set aside savings account let's you see how much you're saving. Pick an account with no monthly or annual fee. Usually you can get one sort of complimentary with your chequing account.
Something else you can try is setting limits. Say your goal is to spend only $100 on junk a week (includes all take-out, clothes, toys, etc.). Take $100 out of the machine and make it last the week. The beauty of this is that you can see the cash going and where it's disappearing. I've found this the most helpful in taming my spending. If you can't hold to a rule like this, then you've got a *serious* spending problem.
Anyhow, whatever your budget, stick to it. If you've only got $300 left to blow on junk, save your receipts and add them up. If you've already spent $200, then watch to make sure you don't go over the next $100. It's not easy, but believe me it's a very attractive life skill - especially to a prospective partner. Good luck!
One thing you need to absolutely figure out is what is "necessities" and what isn't. Bills, rent, and groceries are my necessities. I can't live for a month without those paid for. Everything else is bonus. Take-out, CDs, clothes are not necessities.
If you absolutely want to save money, add an amount to your "necessities". Or set up a savings account with your bank so that it automatically takes $100 out of your main account each month. That way you don't even miss the cash you'd be prone to spending. Plus the set aside savings account let's you see how much you're saving. Pick an account with no monthly or annual fee. Usually you can get one sort of complimentary with your chequing account.
Something else you can try is setting limits. Say your goal is to spend only $100 on junk a week (includes all take-out, clothes, toys, etc.). Take $100 out of the machine and make it last the week. The beauty of this is that you can see the cash going and where it's disappearing. I've found this the most helpful in taming my spending. If you can't hold to a rule like this, then you've got a *serious* spending problem.
Anyhow, whatever your budget, stick to it. If you've only got $300 left to blow on junk, save your receipts and add them up. If you've already spent $200, then watch to make sure you don't go over the next $100. It's not easy, but believe me it's a very attractive life skill - especially to a prospective partner. Good luck!
Member
Join Date: Apr 2006
Location: Under the Rainbow
Posts: 1,086
While it didn't stem from an emotional issue, I went through a period in my life where I was flat broke. I found the way to live within my budget was to never ever use credit cards, and to write checks anytime I planned on buying something (assuming I could, some places won't take checks, those places I simply didn't go to).
By forcing myself to write out a check, I forced myself to *think* about what I was buying each and every time. I kept my credit card and ATM card in a block of ice in the freezer - if I really needed it for an emergency, I could unthaw it, but otherwise I couldn't just splurge.
I also made sure that my savings account was NOT tied in to my ATM card. It's hard to get banks to do this, but if you grouse enough, you can get them to.
And I never ever carried my checkbook with me unless I was specifically going shopping. I also never carried more than $10 in cash on me.
In other words, I made shopping a real pain for myself. I had to think about what I wanted to buy, make sure I brought my checkbook with me, if I wanted to withdraw cash, I had to unthaw the card, if it was something more than what I had in my checking account, I had to unthaw the credit card, and the places which tend not to take checks are places I shouldn't have been spending money anyway (fast food, convenience stores etc).
I really had to need to spend money to do so. It made me think about what I was going to buy. It made me question whether it was worth the effort. It also meant that I tended to make one long shopping trip per week, which also saved on gas expenses.
Recently, hubby and I are trying to track our expenses better. We've gone to putting absolutely everything on our credit card so we can do a financial analysis - no more cash spending that can't be accounted for.
I would recommend you get a program like Quicken and set up categories. There's nothing like seeing a report that shows 43% of your income going to "dining out" to make you take stock in your actions.
By forcing myself to write out a check, I forced myself to *think* about what I was buying each and every time. I kept my credit card and ATM card in a block of ice in the freezer - if I really needed it for an emergency, I could unthaw it, but otherwise I couldn't just splurge.
I also made sure that my savings account was NOT tied in to my ATM card. It's hard to get banks to do this, but if you grouse enough, you can get them to.
And I never ever carried my checkbook with me unless I was specifically going shopping. I also never carried more than $10 in cash on me.
In other words, I made shopping a real pain for myself. I had to think about what I wanted to buy, make sure I brought my checkbook with me, if I wanted to withdraw cash, I had to unthaw the card, if it was something more than what I had in my checking account, I had to unthaw the credit card, and the places which tend not to take checks are places I shouldn't have been spending money anyway (fast food, convenience stores etc).
I really had to need to spend money to do so. It made me think about what I was going to buy. It made me question whether it was worth the effort. It also meant that I tended to make one long shopping trip per week, which also saved on gas expenses.
Recently, hubby and I are trying to track our expenses better. We've gone to putting absolutely everything on our credit card so we can do a financial analysis - no more cash spending that can't be accounted for.
I would recommend you get a program like Quicken and set up categories. There's nothing like seeing a report that shows 43% of your income going to "dining out" to make you take stock in your actions.
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Join Date: Jul 2008
Posts: 66
hi utopia,
you should always pay yourself first in the way of a savings account. sometimes people spend because they are lonely, angry, etc. Figure out what your triggers are, so you will not repeat this behavior. you cannot deprive yourself either or you will swing back to spending it all. allow yourself a little treat each pay...movie, cd, etc but give yourself a limit of the amount. ask for your god to help you and he/she/it will help you. reach out and talk to others about what company they use for their car insurance, etc. you would be surprised to learn how others save money. my friend needed to have surgery for carpal tunnel and schedule her surgery after school let out for the summer, so she would not have to pay for daycare for her daughter. she saved $700.00. if you need something tell God what you need and it will be provided. It is very odd how this happens, but it always works....just be patient and it will come. Also, what are your financial goals, short and long term goals? If you feel like shopping, sit with that feeling until it passes. It will take away the spending habits you are used to. Keep a journal to write down how you are feeling when the feelings of spending come to you. Get yourself a box and write down what it is you want and give it to God. God will make it happen for you.
you should always pay yourself first in the way of a savings account. sometimes people spend because they are lonely, angry, etc. Figure out what your triggers are, so you will not repeat this behavior. you cannot deprive yourself either or you will swing back to spending it all. allow yourself a little treat each pay...movie, cd, etc but give yourself a limit of the amount. ask for your god to help you and he/she/it will help you. reach out and talk to others about what company they use for their car insurance, etc. you would be surprised to learn how others save money. my friend needed to have surgery for carpal tunnel and schedule her surgery after school let out for the summer, so she would not have to pay for daycare for her daughter. she saved $700.00. if you need something tell God what you need and it will be provided. It is very odd how this happens, but it always works....just be patient and it will come. Also, what are your financial goals, short and long term goals? If you feel like shopping, sit with that feeling until it passes. It will take away the spending habits you are used to. Keep a journal to write down how you are feeling when the feelings of spending come to you. Get yourself a box and write down what it is you want and give it to God. God will make it happen for you.
Member
Join Date: Dec 2006
Location: Stumbling toward happiness
Posts: 4,706
Hi utopia,
I read a slim little book called "Your Money Or Your Life" in the last ten years, and finally all the stuff bouncing about in my head about money started to make sense.
When you think about it, money in itself is completely worthless....little slips of paper that you hand to someone, and they hand you something back that may be gone in an hour or a day.
But I liked that book because it got me started thinking about what money REALLY is, what kind of life it can get me, and what the physical day-to-day (tiny!) things are I'd have to do to have a life that I actually liked. if you can find a cheap copy of it at the library or on New & Used Books, Textbooks, Rare & Out of Print Books: AbeBooks you might find it interesting. it's not dry at all, actually very kind and thoughtful.
Good luck!
I read a slim little book called "Your Money Or Your Life" in the last ten years, and finally all the stuff bouncing about in my head about money started to make sense.
When you think about it, money in itself is completely worthless....little slips of paper that you hand to someone, and they hand you something back that may be gone in an hour or a day.
But I liked that book because it got me started thinking about what money REALLY is, what kind of life it can get me, and what the physical day-to-day (tiny!) things are I'd have to do to have a life that I actually liked. if you can find a cheap copy of it at the library or on New & Used Books, Textbooks, Rare & Out of Print Books: AbeBooks you might find it interesting. it's not dry at all, actually very kind and thoughtful.
Good luck!
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Join Date: Sep 2008
Posts: 4,151
Is there something leaving a big hole inside of you? Years ago I used to "fix my feelings" by spending money on things I didn't really need or want. My income is today is quite small so I have to be careful and that has been a good discipline
Have you tried writing down what your essential outgoings are and their amounts) and then seeing what is left over to spend on CDs etc. Don't know if you have any "spiritual"/metaphysical beliefs but even if you don't, but may want to read this affirmation about increasing prosperity. Good Luck
Ask Lousie - by Louse L. Hay
Have you tried writing down what your essential outgoings are and their amounts) and then seeing what is left over to spend on CDs etc. Don't know if you have any "spiritual"/metaphysical beliefs but even if you don't, but may want to read this affirmation about increasing prosperity. Good Luck
Ask Lousie - by Louse L. Hay
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