Well, after taking a 2 month hiatus from doing this post series due to a chaotic October and my Thanksgiving post series in November, it's time for my final financial-themed post! So I thought I'd close with some final thoughts in bullet point form.
I'm happy that...
- I made my goal of not purchasing any books in 2012. This goal ended up being way easier than I thought it would be. Yes, it required discipline and there have been books I've wanted to read this year that I haven't been able to due to a 1,233,523 person wait at the libary. Ok, I may be exaggerating but you get the idea! I am looking forward to having the flexibility to buy books again in 2013 and I actually have a stockpile of gift cards to use to buy them!
- I paid for all of my medical bills associated with my sinus surgery promptly. There was a time in my life when I would not have had the saving to do this, so I am proud of the fact that I have gotten to the point where I was able to pay them off right away. Did it totally and completely suck to pay $4,000 worth of medical bills in the first couple of months of the year? ABSO-FREAKING-LUTELY. Am I glad I got the surgery? Yes. Being healthy is worth every dime I spent.
I'm disappointed that...
- I didn't pay off my undergraduate student loans. I didn't proclaim this as an official goal for the year, but it was something I wanted to work on in 2012. But it just didn't happen. This WILL be happening in 2013. Mark my words. I feel sheepish over the fact that I am 31 and still have undergraduate student loans, but it's something I will work to remedy in the coming year.
- I didn't build up as much of a balance in my savings account as I would have liked. Part of this has to do with the whole sinus surgery thing, plus it was an expensive year with some out-of-town weddings (which were awesome and so much fun and so worth the money spent). I really struggle with knowing how much to put in savings as I still have student loan debt from undergrad and graduate school. Part of me wants to put every extra cent towards those dang loans, but another part of me knows that it's healthy and necessary to have a savings account. After all, there are unexpected events, like surgeries, car repairs, etc, that require savings, so I will continue to save. I haven't decided on a goal for 2013, but I will be aggressive at putting more aside each month.
So there you have it. All in all, I am more happy with how I did financially this year than I am disappointed, which is a good way to end the year! I am dating pretty much THE MOST financially responsible 30-something ever, so I am sure some of his frugal ways will rub off on me in 2013. :)
Did you have any financial goals this year? If so, do you feel good about your progress towards those goals?
Showing posts with label Mid-month money manifesto. Show all posts
Showing posts with label Mid-month money manifesto. Show all posts
Friday, December 14, 2012
Friday, September 14, 2012
Mid-Month Money Manifesto
And just like that, it's September. We are done with nearly 3/4 of the year! How is that possible? I know, I know, it's rhetorical question that most of us are asking ourselves.
Last month, I tweeted something about how the ability to walk to the grocery store was one of my favorite aspects of living downtown - which resulted in a flurry of responses. Some said they had lived walking distance from a grocery store and loved it, some said they absolutely hated it and loved the convenience of driving to the grocery store. This conversation then prompted other conversations about how much we each drive and whether each person was a one car family.
I am single, so obviously, I am a one car "family". But I rarely drive the car that I own (which I own free and clear, boy I don't miss the car payment). Most weeks, the only time I drive is to drive to run club (which is ironic, no?). The rest of the time, I get around by walking or taking a nice ride bike. I HATE DRIVING so I love that I can get most places on foot, be it church, the grocery store, target, or work. Granted, shopping on foot has it's pros and cons. I have to really think hard about whether I want to take advantage of the 2-for-1 deal on pickles as that might make my grocery bags too heavy, making for a miserable bike ride/walk home. I also take more of a "European" approach to grocery shopping which means I shop more frequently and buy less during each shopping trip.
Besides the summer months when I drive up to my parents cabin, I usually get by with only filling my car with gas once a month. The decrease in the amount of driving I do has been a significant source of saving since moving downtown. In fast, last fall I went 1.5 months without buying gas, and I expect that to happen again this fall! Besides the savings in gas, my car *should* last longer, and I only need about 1 oil change a year instead of multiple oil changes.
My car has been payed for now for a couple of years and I do not have any plans to replace it anytime soon. Given the low number of miles I put on each month, I expect my 2003 Honda Accord to last me for years upon years to come. I have absolutely no plans of replacing my car anytime soon. For me, I'd rather have a paid-in-full "older" car than take on a car payment to drive something nicer. And really, I don't think of my car as being old, but know that many would since it has ~145,000 miles on it and is 10 years old. I have never subscribed to the view of cars being a status symbol, so I have problem driving my practical paid-in-full car.
So here is hoping that my trusty Honda Accord stays reliable, as right now, it's a huge source of savings for me to not have a car payment!
Do you grocery shop on foot or do you drive to the grocery store? Are you a 1 car family? If not, have you or would you ever consider being a 1 car family? If I was to get married and continue to live downtown, it would definitely be feasible to be a one car family since I drive so little.
Last month, I tweeted something about how the ability to walk to the grocery store was one of my favorite aspects of living downtown - which resulted in a flurry of responses. Some said they had lived walking distance from a grocery store and loved it, some said they absolutely hated it and loved the convenience of driving to the grocery store. This conversation then prompted other conversations about how much we each drive and whether each person was a one car family.
I am single, so obviously, I am a one car "family". But I rarely drive the car that I own (which I own free and clear, boy I don't miss the car payment). Most weeks, the only time I drive is to drive to run club (which is ironic, no?). The rest of the time, I get around by walking or taking a nice ride bike. I HATE DRIVING so I love that I can get most places on foot, be it church, the grocery store, target, or work. Granted, shopping on foot has it's pros and cons. I have to really think hard about whether I want to take advantage of the 2-for-1 deal on pickles as that might make my grocery bags too heavy, making for a miserable bike ride/walk home. I also take more of a "European" approach to grocery shopping which means I shop more frequently and buy less during each shopping trip.
Besides the summer months when I drive up to my parents cabin, I usually get by with only filling my car with gas once a month. The decrease in the amount of driving I do has been a significant source of saving since moving downtown. In fast, last fall I went 1.5 months without buying gas, and I expect that to happen again this fall! Besides the savings in gas, my car *should* last longer, and I only need about 1 oil change a year instead of multiple oil changes.
My car has been payed for now for a couple of years and I do not have any plans to replace it anytime soon. Given the low number of miles I put on each month, I expect my 2003 Honda Accord to last me for years upon years to come. I have absolutely no plans of replacing my car anytime soon. For me, I'd rather have a paid-in-full "older" car than take on a car payment to drive something nicer. And really, I don't think of my car as being old, but know that many would since it has ~145,000 miles on it and is 10 years old. I have never subscribed to the view of cars being a status symbol, so I have problem driving my practical paid-in-full car.
So here is hoping that my trusty Honda Accord stays reliable, as right now, it's a huge source of savings for me to not have a car payment!
Do you grocery shop on foot or do you drive to the grocery store? Are you a 1 car family? If not, have you or would you ever consider being a 1 car family? If I was to get married and continue to live downtown, it would definitely be feasible to be a one car family since I drive so little.
Wednesday, August 15, 2012
Midmonth Money Manifesto
Greetings and happy Wednesday! July was such a busy month, I ended up skipping my monthly money post, but now I am back on track!
This month I thought I'd talk about the concept of saving versus splurging. I really try to strike a balance between these two approaches to spending, but of course try to lean towards saving instead of splurging. I think it's important to make a delineation between what you will approach with an air of frugality versus what you are willing and able to splurge on. Here is how it breaks out for me for some items...
I splurge on...
- a latte each Friday
- daily contact (my eyes say thank you!)
- staple items for work, such as business suits, dress pants, and classic dresses
- produce - it seems like produce from the nicer grocery stores is more expensive, but does not spoil as quickly!
- eating out for lunch once a week
- my Erin Condren planner. $50 is a lot to spend on a planner, but I use it every day, so it's worth the money spent
- Udi's gluten free bread. It pains me to spend $6 on a loaf that is 1/2 the size of a normal loaf of bread, but it's the only thing my stomach tolerates before long runs!
I save by...
- making coffee at home 6 days of the week
- buying my summer dresses at Target
- purchasing store-brand canned goods (they seem to taste the same as the name brand ones do!)
- packing my lunch 4 of the 5 days of my work week
- buying my running shirts and sports bras at Target where they are fairly inexpensive
- using the basic gym in my condo building instead of having a membership to a club (I miss having access to classes, though!)
- using the library! I have not bought a single book this year!!
What items fall under your splurge/save categories?
This month I thought I'd talk about the concept of saving versus splurging. I really try to strike a balance between these two approaches to spending, but of course try to lean towards saving instead of splurging. I think it's important to make a delineation between what you will approach with an air of frugality versus what you are willing and able to splurge on. Here is how it breaks out for me for some items...
I splurge on...
- a latte each Friday
- daily contact (my eyes say thank you!)
- staple items for work, such as business suits, dress pants, and classic dresses
- produce - it seems like produce from the nicer grocery stores is more expensive, but does not spoil as quickly!
- eating out for lunch once a week
- my Erin Condren planner. $50 is a lot to spend on a planner, but I use it every day, so it's worth the money spent
- Udi's gluten free bread. It pains me to spend $6 on a loaf that is 1/2 the size of a normal loaf of bread, but it's the only thing my stomach tolerates before long runs!
I save by...
- making coffee at home 6 days of the week
- buying my summer dresses at Target
- purchasing store-brand canned goods (they seem to taste the same as the name brand ones do!)
- packing my lunch 4 of the 5 days of my work week
- buying my running shirts and sports bras at Target where they are fairly inexpensive
- using the basic gym in my condo building instead of having a membership to a club (I miss having access to classes, though!)
- using the library! I have not bought a single book this year!!
What items fall under your splurge/save categories?
Friday, June 15, 2012
Mid-month Money Manifesto
First off, I can't believe it's almost the middle of the year. Second of all, I can't believe it's already the middle of June. This month is flying by! I am just weeks away from my big vacation of the year! I'm heading to British Columbia in early July for Amber's wedding. I am so excited as British Columbia is one of my favorite places in North America - this is actually the 3rd time I am visiting this region in 3 years (and I have plans to visit again next summer!). If you haven't been there, I highly recommend it - it's got something for everyone as they have the mountains and the ocean! What more could a girl ask for?
So with my vacation just around the corner, vacation budgeting is on my mind, so I thought I'd talk a little bit about vacation planning for this month's mid-month money manifesto post. Truth be told, up until the last 2 years, I really did not consciously think about how much I would spend on a vacation. I just sort of booked it, spent money while I was on the trip without really thinking about a budget for spending, and came home and never looked back on how much it cost me. That so doesn't happen anymore - especially now that I have some other big financial goals, like saving up for a down payment for a home...
Vacations are meant to be fun and enjoyable, and stressing about money on a vacation takes away from the fun of the experience. So here are a couple of things I do to keep the costs under control or help myself track my spending:
1. Rent an apartment. This isn't always possible - like during my BC trip I'll be in 3 different places (Seattle, Vancouver, and the island were Amber gets married) so I will stay in hotels. But if it's at all possible, I opt to rent an apartment over staying in a hotel. I find that the cost/night is on par with hotels - or even less. When I went to Paris for my 30th, renting an apartment was the best decision ever. I usually ate 1-2 (delicious) meals in my apartment each day, which freed up money for a couple of nicer meals and other excursions. Plus, it allowed me to live more like a local by shopping at markets, the local butcher shop, and the local produce stand!
2. Spread out your spending. I try to book things over a long period of time so that I am not paying for everything all at once. My flight usually gets booked 3-6 months in advance (which most people obviously do), and if I am staying in a hotel, I book and pay for it 1-3 months in advance. I really like having the hotel paid for ahead of time so that I am not shelling out money like crazy the week of the trip.
3. Put it all on one card. I use one specific credit card for all my vacation travel. I pay it off after the trip, of course, but I like using one specific card so it's easy to identify how much I spent on a trip. In the past I really had no clue how much a vacation cost me after the fact. Now I just add the amount of cash withdrawn to the balance on my travel credit card and I know exactly how much it cost (and how to budget for future trips).
Do you make a budget for yourself when traveling? Do you keep track of how much a trip costs you in total? I like to keep track of it as it helps me budget for future trips, or helps me when people ask how much to budget for their trip to a region I've visited.
So with my vacation just around the corner, vacation budgeting is on my mind, so I thought I'd talk a little bit about vacation planning for this month's mid-month money manifesto post. Truth be told, up until the last 2 years, I really did not consciously think about how much I would spend on a vacation. I just sort of booked it, spent money while I was on the trip without really thinking about a budget for spending, and came home and never looked back on how much it cost me. That so doesn't happen anymore - especially now that I have some other big financial goals, like saving up for a down payment for a home...
Vacations are meant to be fun and enjoyable, and stressing about money on a vacation takes away from the fun of the experience. So here are a couple of things I do to keep the costs under control or help myself track my spending:
1. Rent an apartment. This isn't always possible - like during my BC trip I'll be in 3 different places (Seattle, Vancouver, and the island were Amber gets married) so I will stay in hotels. But if it's at all possible, I opt to rent an apartment over staying in a hotel. I find that the cost/night is on par with hotels - or even less. When I went to Paris for my 30th, renting an apartment was the best decision ever. I usually ate 1-2 (delicious) meals in my apartment each day, which freed up money for a couple of nicer meals and other excursions. Plus, it allowed me to live more like a local by shopping at markets, the local butcher shop, and the local produce stand!
2. Spread out your spending. I try to book things over a long period of time so that I am not paying for everything all at once. My flight usually gets booked 3-6 months in advance (which most people obviously do), and if I am staying in a hotel, I book and pay for it 1-3 months in advance. I really like having the hotel paid for ahead of time so that I am not shelling out money like crazy the week of the trip.
3. Put it all on one card. I use one specific credit card for all my vacation travel. I pay it off after the trip, of course, but I like using one specific card so it's easy to identify how much I spent on a trip. In the past I really had no clue how much a vacation cost me after the fact. Now I just add the amount of cash withdrawn to the balance on my travel credit card and I know exactly how much it cost (and how to budget for future trips).
Do you make a budget for yourself when traveling? Do you keep track of how much a trip costs you in total? I like to keep track of it as it helps me budget for future trips, or helps me when people ask how much to budget for their trip to a region I've visited.
Monday, April 16, 2012
Mid-Month Money Manifesto - Month 4
Month 4: On Being a Landlord
One of the biggest changes over the last year was my decision to move out of the condo I own (well, technically I do not own anything because the mortgage is higher than the value of the home. So I own a mortgage). For those who are newer to my blog, I had been pretty miserable in my suburban condo for quite awhile and last year when I got back from Paris, I had an epiphany and realized that I could choose to continue to live in a home I didn't like or I could choose a different path.
I chose a different path and decided to rent out my condo and rent a place downtown. Buying a place was not an option as I did not have enough money for the down payment.
I definitely took a more unconventional approach to my living situation, but it has worked. I know there are people out there who view my approach as moving backwards in life, but I don't view it that way. I am so much happier downtown, and while my housing expense has increased, it's been partially offset by a decrease in some expenses. Like going from buying gas once a week to once a month, no longer needing a bus pass or a gym membership (my condo has a really nice gym), and paying $70/month less for cable/internet (which makes no sense to me but I will not complain!).
I do feel extremely fortunate to have a wonderful tenant who pays his rent on time (or early most months). He takes great care of the place and said he plans to stay there until he buys a home. I hope and pray that he stays in my condo for years!
Being a landlord has not been too bad, but it's not the easiest thing either. I had to figure out how to draft a lease agreement, run credit/background checks, and apply for a rental license. I did all of that in the weeks leading up to taking my 1st CFA exam when I was already stressed to the max. Filing my taxes was way more complicated/complex and I had stomach aches until I filed them as I was worried about how my taxes might be impacted (it ended up having very little impact, thank God, as I had all those medical bills to pay and could not handle a big tax payment on top of that). And I have the added worry of knowing that some day this tenant will move out and I'll have to start all over and maybe the next tenant won't pay so promptly or won't take good care of the place...
But in the end, it's worth the stress - because I am so much happier in my new home and can't imagine living anywhere else. Some day I will buy again, maybe in 2-3 years, but for now, I am content with renting. I look forward to the day when I will be able to sell my condo and close the door on that bad decision, but in the mean time - renting it out is the right thing for me to do. Financially speaking - I'd prefer to own the home I live in as renting is sort of like treading water, to some extent. Right now I want to buy in the development I live in, but I want to give myself 2-3 years to make sure this is truely the lifestyle I want in the long run.
But this whole renting out my condo and renting a condo? It's definitely been a step forward in my life - not backwards.
Do you own the home you live in? If so, are you happy you made the purchase or do you wish you had waited to buy. If you rent, do you wish you had bought or have plans to buy? I unfortunately bought at the peak of the market, right before it burst. It's a decision I completely regret, but I have learned a lot in the process, and I will be a much smarter buyer next time around. I am hoping to be in the position to sell my condo in 5 years as I should have some equity at that point.
One of the biggest changes over the last year was my decision to move out of the condo I own (well, technically I do not own anything because the mortgage is higher than the value of the home. So I own a mortgage). For those who are newer to my blog, I had been pretty miserable in my suburban condo for quite awhile and last year when I got back from Paris, I had an epiphany and realized that I could choose to continue to live in a home I didn't like or I could choose a different path.
I chose a different path and decided to rent out my condo and rent a place downtown. Buying a place was not an option as I did not have enough money for the down payment.
I definitely took a more unconventional approach to my living situation, but it has worked. I know there are people out there who view my approach as moving backwards in life, but I don't view it that way. I am so much happier downtown, and while my housing expense has increased, it's been partially offset by a decrease in some expenses. Like going from buying gas once a week to once a month, no longer needing a bus pass or a gym membership (my condo has a really nice gym), and paying $70/month less for cable/internet (which makes no sense to me but I will not complain!).
I do feel extremely fortunate to have a wonderful tenant who pays his rent on time (or early most months). He takes great care of the place and said he plans to stay there until he buys a home. I hope and pray that he stays in my condo for years!
Being a landlord has not been too bad, but it's not the easiest thing either. I had to figure out how to draft a lease agreement, run credit/background checks, and apply for a rental license. I did all of that in the weeks leading up to taking my 1st CFA exam when I was already stressed to the max. Filing my taxes was way more complicated/complex and I had stomach aches until I filed them as I was worried about how my taxes might be impacted (it ended up having very little impact, thank God, as I had all those medical bills to pay and could not handle a big tax payment on top of that). And I have the added worry of knowing that some day this tenant will move out and I'll have to start all over and maybe the next tenant won't pay so promptly or won't take good care of the place...
But in the end, it's worth the stress - because I am so much happier in my new home and can't imagine living anywhere else. Some day I will buy again, maybe in 2-3 years, but for now, I am content with renting. I look forward to the day when I will be able to sell my condo and close the door on that bad decision, but in the mean time - renting it out is the right thing for me to do. Financially speaking - I'd prefer to own the home I live in as renting is sort of like treading water, to some extent. Right now I want to buy in the development I live in, but I want to give myself 2-3 years to make sure this is truely the lifestyle I want in the long run.
But this whole renting out my condo and renting a condo? It's definitely been a step forward in my life - not backwards.
Do you own the home you live in? If so, are you happy you made the purchase or do you wish you had waited to buy. If you rent, do you wish you had bought or have plans to buy? I unfortunately bought at the peak of the market, right before it burst. It's a decision I completely regret, but I have learned a lot in the process, and I will be a much smarter buyer next time around. I am hoping to be in the position to sell my condo in 5 years as I should have some equity at that point.
Thursday, March 15, 2012
Mid-Month Money Manifesto - Month 3
Greetings! It's time for another Mid-Month Money Manifesto post. First I'd like to highlight a couple of great posts that have been floating around the internet lately. Misris posted about 5 steps to fiscal responsibility. This girl has paid off all of her student loan debt and is in her 20s, so clearly she knows what she is doing! And then Ashley posted about How to Get out of Debt. She has a blog that chronicles her journey towards becoming debt free which is really inspiring as she did it by working 55+ hours a week on top of being a full-time PhD student. Inspiring stuff!
Anyways, back to the post at hand. Since the beginning of the year, I've really worked hard on getting a handle on my cash flow. What I mean by this is that I have done a lot of analysis of what is comes in (rent from my tenants + paychecks from work) and what goes out each month. While you may have months where you spend more than you made (like this month when I am using savings to pay off medical bills), in general, it's obviously not a good idea to spend more than you are making. But in the cash-less society we live in, it's easy to get out of touch with your cash flow situation - especially if you aren't considering purchases being made with a credit card.
I needed to get a handle on what I had left each month so I could set up some realistic goals for additional payments to put towards debt. There are lots of great tools out there, but I have been using an online money map application that my bank provides - it tracks all spending between my checking/savings/credit card accounts, and classifies those expenses by type (restaurants, retail stores, groceries, mortgage, etc). I know there are other programs out there, such as mint.com that do something similar.
In addition to getting a handle on my cash flow, I also set a budget for each spending category and have been holding myself accountable to those budgets. That means watching what I spend on groceries, meals outs, and places like Target. It hasn't been easy, but it's nice to see that cushion between what I earned and what I spent grow each month.
Do you pay attention to the cushion between what you earn and what you spend? Do you use any applications, like mint.com to track your spending habits?
Anyways, back to the post at hand. Since the beginning of the year, I've really worked hard on getting a handle on my cash flow. What I mean by this is that I have done a lot of analysis of what is comes in (rent from my tenants + paychecks from work) and what goes out each month. While you may have months where you spend more than you made (like this month when I am using savings to pay off medical bills), in general, it's obviously not a good idea to spend more than you are making. But in the cash-less society we live in, it's easy to get out of touch with your cash flow situation - especially if you aren't considering purchases being made with a credit card.
I needed to get a handle on what I had left each month so I could set up some realistic goals for additional payments to put towards debt. There are lots of great tools out there, but I have been using an online money map application that my bank provides - it tracks all spending between my checking/savings/credit card accounts, and classifies those expenses by type (restaurants, retail stores, groceries, mortgage, etc). I know there are other programs out there, such as mint.com that do something similar.
In addition to getting a handle on my cash flow, I also set a budget for each spending category and have been holding myself accountable to those budgets. That means watching what I spend on groceries, meals outs, and places like Target. It hasn't been easy, but it's nice to see that cushion between what I earned and what I spent grow each month.
Do you pay attention to the cushion between what you earn and what you spend? Do you use any applications, like mint.com to track your spending habits?
Thursday, February 16, 2012
Mid-Month Money Manifesto - Month 2
Month 2: Goals... And Adjusting Goals
It's time for another Mid-Month Money Manifesto post. Last month I talked about what was working. This month I am talking about my goals.
I had this whole post written about my financial goals for the year and how I was prioritizing between paying down student loans and my mortgage while savings for a down payment for the purchase of a home down the road... Then I got my final medical bill and realized my out-of-pocket obligation for my sinus surgery is nearly twice what I thought it would be.
Gosh, being an adult sucks sometimes. I am not abandoning my financial goals... They are just getting pushed off to the 2nd half of the year as the goal for the first half of the year is to pay off my medical bills and pay off a credit card that I am carrying a balance on.
So once I have met these goals, I will set goals for the rest of 2012 - most likely in the 2nd half of the year.
Do you have well-defined financial goals? In the past, I have set up automatic deposits so that I save a certain amount each year, and in addition to my monthly student loan payments, I always put extra towards paying down the principal, but I haven't really had much more focus than that. This year I will.
It's time for another Mid-Month Money Manifesto post. Last month I talked about what was working. This month I am talking about my goals.
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Gosh, being an adult sucks sometimes. I am not abandoning my financial goals... They are just getting pushed off to the 2nd half of the year as the goal for the first half of the year is to pay off my medical bills and pay off a credit card that I am carrying a balance on.
So once I have met these goals, I will set goals for the rest of 2012 - most likely in the 2nd half of the year.
Do you have well-defined financial goals? In the past, I have set up automatic deposits so that I save a certain amount each year, and in addition to my monthly student loan payments, I always put extra towards paying down the principal, but I haven't really had much more focus than that. This year I will.
Monday, January 16, 2012
Mid-Month Money Manifesto - Month 1
Greetings and Happy Monday from Chicago! I hope you all had a wonderful weekend - mine was fabulous and it's not really over with as I have today off since it's a holiday here in the states. I'm waiting until I am home to do a recap post, so that will come with time (after my surgery most likely!).
Today I am kicking off a monthly feature: Mid-Month Money Manifesto. As I said in my 2012 goals post, one of my goals for 2012 is to save more. For me, in order to achieve a goal, I need to hold myself accountable and revisit that goal on a regular basis. So this monthly blog post is my opportunity to do that.
The definition of manifesto is: a written statement declaring publicly the intentions, motives, or views of its issuer. Pretty much the perfect word to use in my alliterative post theme title (here I go again with the alliterations). It seems like many of us have financial goals, so hopefully these posts will be helpful to you and we can all learn from each other!
When you are trying to make changes in your life, I think it's good to start off by focusing on what is currently working well for you. Here are some of the changes I've made in the past that will help me achieve my financial goals:
1. 401k. 10% of my paycheck goes into my 401k at work. It's a pre-tax contribution, and it's a contribution that I don't really 'feel' because I've always contributed to a 401k since I started with my employer - I just try to bump up my contribution by 1% each year.
2. Pay yourself first. If you read any books about financial management, the authors often stress the importance of paying yourself first. My 401k contribution is one way of paying myself first, but I also have an automatic deposit set up so that $100 of every paycheck goes into my ING savings account. I am a BIG fan of ING. Their interest rates tend to be higher than brick-and-mortar banks, and it takes about 3-4 business days to transfer funds out of the savings account - which keeps you from making impulse purchases. The $100/paycheck is a bare minimum that gets saved each month. I keep an eye on my checking account balance and when it gets to a certain point, I transfer funds to the ING account. But lately, I have not been transferring funds over, which means I am spending more than I should, hence the saving goal.
3. Latte Friday. For awhile there, I was drinking a large latte almost every weekday! That is like $5/day, which equals about $1300/year. Yikes! Those little, daily expenses add up so fast, so 2 years ago, I enacted Latte Friday. Now I make coffee at home and bring it to work in a thermos and treat myself to a latte on Fridays. I definitely appreciate that latte a whole lot more than I did when I was having them every day.
4. Packed Lunches. Since I work downtown and am surrounded by restaurants and take-away places, it's so tempting to eat out. But a lunch out averages around $7 at most places, and that adds up fast. So this fall I have really tried to only eat out once a week. I struggle with this from time to time because it requires planning and preparation on the weekend, and many of my co-workers eat out every. single. day.
So that is what is currently working for me. I know I have lots of areas of opportunity for tightening the belt on spending, but at least I've got a somewhat solid foundation to build upon.
What are some changes you've made to improve your financial situation?
Today I am kicking off a monthly feature: Mid-Month Money Manifesto. As I said in my 2012 goals post, one of my goals for 2012 is to save more. For me, in order to achieve a goal, I need to hold myself accountable and revisit that goal on a regular basis. So this monthly blog post is my opportunity to do that.
The definition of manifesto is: a written statement declaring publicly the intentions, motives, or views of its issuer. Pretty much the perfect word to use in my alliterative post theme title (here I go again with the alliterations). It seems like many of us have financial goals, so hopefully these posts will be helpful to you and we can all learn from each other!
When you are trying to make changes in your life, I think it's good to start off by focusing on what is currently working well for you. Here are some of the changes I've made in the past that will help me achieve my financial goals:
1. 401k. 10% of my paycheck goes into my 401k at work. It's a pre-tax contribution, and it's a contribution that I don't really 'feel' because I've always contributed to a 401k since I started with my employer - I just try to bump up my contribution by 1% each year.
2. Pay yourself first. If you read any books about financial management, the authors often stress the importance of paying yourself first. My 401k contribution is one way of paying myself first, but I also have an automatic deposit set up so that $100 of every paycheck goes into my ING savings account. I am a BIG fan of ING. Their interest rates tend to be higher than brick-and-mortar banks, and it takes about 3-4 business days to transfer funds out of the savings account - which keeps you from making impulse purchases. The $100/paycheck is a bare minimum that gets saved each month. I keep an eye on my checking account balance and when it gets to a certain point, I transfer funds to the ING account. But lately, I have not been transferring funds over, which means I am spending more than I should, hence the saving goal.
3. Latte Friday. For awhile there, I was drinking a large latte almost every weekday! That is like $5/day, which equals about $1300/year. Yikes! Those little, daily expenses add up so fast, so 2 years ago, I enacted Latte Friday. Now I make coffee at home and bring it to work in a thermos and treat myself to a latte on Fridays. I definitely appreciate that latte a whole lot more than I did when I was having them every day.
4. Packed Lunches. Since I work downtown and am surrounded by restaurants and take-away places, it's so tempting to eat out. But a lunch out averages around $7 at most places, and that adds up fast. So this fall I have really tried to only eat out once a week. I struggle with this from time to time because it requires planning and preparation on the weekend, and many of my co-workers eat out every. single. day.
So that is what is currently working for me. I know I have lots of areas of opportunity for tightening the belt on spending, but at least I've got a somewhat solid foundation to build upon.
What are some changes you've made to improve your financial situation?
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