My dear readers, the key to keeping your personal finances under control is simply CB (cut back) or MMM (make more money). I have been inspired to write on this topic from a book I have been reading by Sophie Kinsella called "Confessions of a Shopaholic." In the book, the main character, Rebecca Bloomwood, is an A grade shopaholic. Her father gives her advice on how to get out of debt, either CB or MMM. Even if you are not in debt and just looking to save more this will be good advice to follow.
I do not have a full time job, thus the best option for me is to CB. But where do I CB? Miss Bloomwood attempted to cut out her morning cappuccino and take-away meals (she is British, hence the odd lingo). Bloomwood buys a cookbook, cooking supplies, and a notebook to keep track of spending. The fun in the story is that she actually keeps buying every frivolous item she sees! She does not really end up cutting back, but that does not mean you can't overcome the urge to shop. If you are looking to cut back, this is my advice to you:
Create a Pinterest page for recipes. Do NOT buy a cookbook, those things are expensive and most likely, you can find whatever you want online. If you need physical copies of recipes, print them out.
Make coffee at home or go to a less expensive coffee joint. Starbucks is my favorite get away for a relaxation session where I can chill out with my Venti iced coffee with coconut milk, however, it is not a necessity. When I am at school, I mostly use my Keurig to make my coffee. I still like the taste of Starbucks, so I used to buy Starbucks Keurig cups, but I have converted to Seattle's Best. Seattle's Best is owned by Starbucks, but the best part is a box of 10 cups, cost only $3.99 at my local grocery store.
Tracking your spending is very important: you can make a mental list of what you have spent or write it down -- whichever floats your boat. Visualize all your spending habits and edit your list accordingly. You can easily cut back when you establish a budget. What I like to do is make a list of projected costs and earnings. I typically make my list on Monday at work of what I need to buy in the coming week and how much money I will be earning to pay for it. Here is an example:
Monday: Haircut appointment + eyebrows = $60
Tuesday: Going to dinner with friends = $12 dinner budget
Wednesday: Have coupon for 55 percent off of Yarn at A.C. Moore = $10 yarn budget
Thursday: Yale University Art Gallery = Free admission
Friday: Pay phone bill and get gas = $50
Total = $132
Work Hours:
Monday: three hours = $36
Tuesday: four and a half articles = $54
Wednesday: five hours = $60
Thursday: zero hours = $0
Friday: five hours = $60
Total after tax = $210
Total after spending: $78
After I go through this process, I split up the money into savings and checking. It is a simple way of tracking how much money I earn, but it also keeps me on my toes. When I spend money, I keep a mental tally of everything I have purchased so nothing gets out of hand. I add up all my totals before I check-out, so I am not surprised to see a total of $25 when I only expected to spend $10.
Planning and cutting back are both important actions to consider doing in your life. Planning helps keep your bank account in check and cutting back helps give you more money to save up. Being in college has taught me that cutting back is a necessity. If I went out and bought whatever I wanted, I would have no money to put towards the things I need. It is important to evaluate needs to wants.
