30 Day Spend and Save (Budget) Challenge Update: I Give Myself a D+

My 30 Day Spend and Save Challenge is coming to a close.  If I had to give myself a grade for this challenge, it would be D+. The only reason I did not give myself an F is because I did save some money towards my goals.  I have learned about myself and money while doing this challenge. Here’s what I learned.

I LOOOVEEE to shop. I also love to eat out and go out with my friends.  I exceeded my clothes, entertainment, fast food, and restaurants budget.  All of this fun and pretty clothes adds up to a whopping $593. 14. Holy cow! My original clothes, entertainment, and restaurants budgets combined equaled $450. I spent an extra $143.14. This is money I could have put towards my emergency fund or moving fund.

Budget more money for the essentials. Sometimes I think my car hates me! Since my car was born in the mid-90s, it’s not very fuel efficient and it burns gas easy. I should have allocated an extra $50 in my budget for gas. Even though I’m not primarily responsible for groceries, I also should have put more money in my budget for groceries.

Budget for other expenses. Throughout this challenge, I had unexpected expenses. I had to renew my AAA membership, buy a lock for my gym locker, take some clothes to the cleaners, and pay for this job subscription service. (I’m thinking of cancelling that subscription.) I also had to pay for transportation for the trip I took to Philly this month. I will definitely add a miscellaneous category to my spending plan.

While I did exceed my budget, I’m not going to beat myself up. This was my first time ever trying to live within a budget and I learned a lot.  I’m taking all the lessons I learned from this month and using them to make adjustments in my budget and spending habits. Hopefully, I will be able to give myself a better grade next month.

30 Day Spend and Save Challenge Update: I Don’t Know if This (Budget) is Going to Work

This past weekend, I went to Philly for homecoming at my Alma Mater (Temple U.) and to celebrate my birthday with my friends. I had a blast! But I think I threw my spending plan out of the window.  I spent more than $200 in 3 days.  This is the cost of my cell phone bill and gas for an entire month! Where did all that money go you ask? It went to clothes, food, hair, transportation, and parties. If you remember from my past updates, I already exhausted my clothes budget and restaurant budget. Since I went over budget in these areas, I had to apply these purchases to other categories. I no longer have any money in my hair, skin care budget, or fast food budgets.  I noticed that I did not allocate enough for gas money, so I might go over that budget too. I have $77 left in my entertainment budget and I just started celebrating my birthday. (My birthday is tomorrow-10/19.)  There are still 12 days left in this month.  I don’t think I’m going to stay within my overall spending plan. I need help.

10 Common Money Mistakes Made by Recent Graduates

Since I'm a recent grad, I decided to do my next series on recent graduates. All my fellow recent graduates know it's hard trying survive in this rough economy. We are bound to make mistakes now that we are in the real world. I found these common mistakes from a guest post over at realmofprosperity. For each mistake, I'm going to tell whether I'm guilty or innocent.

1. Overspending on the wardrobe. Guilty

I love to shop and I get bored with my wardrobe. After struggling through college and working a minimum wage job during the summer, I felt rich once I got my first paycheck from my current job. It feel good to not worry about bills and to spend money on things I wanted. While I needed work attire, I could of bought a few pieces at a time instead of going on two shopping sprees.If you need a work wardrobe, buy a few quality pieces at a time. Use coupons and shop sales and clearances whenever you can.

2. Partying and drinking more while out of school.  I Plead the 5th.  I’m not sure where to place myself.  It’s okay to go out, but if you are fortunate to have a job just remember you have to get up for work in the morning. If you don't have a job, you can be using that money for your job search. You can spend a lot of money going to happy hours or going to clubs every weekend. It is also not wise to play Mr or Ms. Big Shot and pick up the tab for everyone.You are only fooling yourself and wasting your money. Skip happy hour sometimes and find cheaper alternative ways to have fun. Your body and wallet will thank you for it.

3. Eating out too much. Guilty.  I’m guilty because I don’t mind spending $30 or $40 on a meal. (I know, a waste.)  Eating out can be expensive and it can affect your health. Learn how to cook some of your favorite restaurant meals. It may not always taste the same, but you can control amount of calories you’re consuming and save money.

4. Buying swanky gadgets.  Innocent. Even though I want a Mac, I have not spent my savings on a new laptop. (Although my current laptop almost blew out on me.)  The money you want to use to buy a new iPhone, plasma TV, or laptop can go towards your student loan payments. Your current gadgets are good enough until you can afford to buy the latest and greatest gadgets.

5. Abusing the credit cards. Innocent. My mom yelled at me for four years, “ Don’t get a credit card cause I will not help you pay the bill!” I was a good girl and I listened. All I have to worry about is my $50,000 of student loan debt. Woo hoo!!! For those of you who have credit cards, it’s easy to get caught up and start using credit cards to pay for things. You’re making big money now so you can just pay if off later right? WRONG! Or you can use credit cards to get by until you find a job right? WRONG AGAIN! Do not abuse your credit cards with the intention of worrying about it later. Never be tempted to carry a balance on your credit card.  Always pay the full balance.

6. Not being savvy when grocery shopping.  Guilty. One tip my mom gave me to eat what was on sale. I didn’t always do this when I was living on my own. I also didn’t use coupons. Using coupons may make you feel like a soccer mom(no offense to soccer moms), but you will save money on your grocery bill. Look through the supermarket circulars to find sales and use coupon sites.

7. Celebrating with an expensive trip. Innocent. My dream last year was to backpack around the world for an entire month after graduation. Good thing my money did not allow me because I was able to focus on my career. As recent graduates, we do feel entitled to a trip after putting our blood, sweat, and tears into getting a degree, but it may not be the best idea. Vacations cost money that you may not have and you need to focus on starting your career. You will have plenty of time to travel and enjoy the good life once you are established in your career.

8. Purchasing a new set of wheels. Innocent. I am driving the purple bucket that my dad left me. I hate my clunker as much as the next college grad, but buying a new car can become a financial burden. Buying a new car gives you more debt on top of your student loans and credit cards. A new car also depreciates in value as soon as you drive it off the lot. Get as many miles off your clunker and drive it until the wheels fall off. If you must buy a new car, buy a gently used car.

9. Renting a new crib by yourself. Innocent. While it may be nice to have a place all to yourself, a roommate cuts expense. You might be tired of living with other people, but you save money in the long run. You can put that extra money into savings for a house. You can also do what I did and move back in with your parents for awhile. Mom and Dad might nag you, but dealing with them allows you to save for a house too.

10. Forgetting to save for retirement. Guilty. When you are young, retirement seems sooooooo far away, but it’s important to start early. If you start saving now, you will have a lot more money than someone who starts saving in their 30s or 40s. Sign up for your company’s 401k plan especially if they match your contributions. If your company does not offer retirement plans, you can set up a Roth IRA. Since I haven’t found a permanent position, I am looking into various Roth IRAs offers.

I’ve been charged with four counts of recent grad mishaps. I guess I’ll start serving my sentence now-sticking to my spending plan and researching IRA accounts. What mistakes have you made as a recent grad?

Contributors: Mr Credit Card www.askmrcreditcard.com.

Simon Zhen www.realmofprosperity.com/

30 Day Spend and Save Challenge Update: I Got Into Some Trouble

Yeeaaahhhh…. So I got into some trouble this weekend. Remember in my Making A Spending Plan post I said “you may be a fashionista and like to buy shoes every month, but this is a “want,” not a need." Well I kind of didn’t take my own advice. I allocated $200 for the month for clothes and I spent $227.28 in 2 hours. I allocated $40 for eating out and I spent $50.77 within 2 days. Let me reintroduce myself. “Hi. My name is Lauren and I’m a shopaholic who likes to have fun.”

What was the cause of this overspending? I got a coupon that said $50 off your purchase of $100 or more and it was my friend’s birthday. I know you were asking, “What did you buy and what did you order?” I actually bought 3 outfits that I can mix and match with accessories. Good for my wardrobe, not so good for my spending plan. My problem is not that I don’t have enough clothes; I just get bored with my wardrobe from time to time.  Since it’s the beginning of fall, I felt like I need some new pieces. As far as food, I spent most of money when I went out for my friend’s birthday and I ordered two drinks with my meal.

Luckily, I have other places in my spending plan where I can make up for my overspending. I’m being FAIR and flexible with my budgets by deducting that money from other areas. Since the hair salon is my favorite hated place in the world, I can deduct money from my hair budget. I have been doing my own hair lately because I don’t want to give someone $40 of my money every two weeks. I also don’t like to spend five hours of my Saturday in the hair salon. The only time I will get my hair done during this month is for my birthday (10/19). This will only cost me $40. That’s leaves me with $81.95 in my hair budget.

While I was able to be flexible, this overspending can be a problem. I will have to start making student loan payments within the next few months. I also want to move out of my mom’s house. Is there is a shoppers anonymous group I can go to? I need you guys to help me!

30 Day Spend and Save Challenge

I made my spending plan and it goes into effect Friday October 1. Over the next 30 days, I am challenging myself to live within my means and stick to my plan. Can I do it? Yes. Am I afraid of failure? YES!!! I think it would be a lot easier if I had people to keep me accountable. Can you guys help me? Each week I’ll update you on my progress. I need you guys to keep me in line. If I’m being a bad girl and not following the plan, feel free to lash out on me (just keep it clean). I posted my spending plan again so you can show me where to make changes before I start. You can also join me in this challenge. Make your own spending plan and challenge yourself to stick to during the month of October. Remember, it’s all about steps to financial freedom.

My Monthly Spending Plan

Income Paycheck 1550 Total 1550 Expenses Needs Gas 100 Cell Phone 100 Food Groceries 40 Clothing 200 Emergency Fund 200 Moving Fund 300 Hair 120 Tithes/Offerings/Charity 200 Total 1260 Wants Food Fast Food 10 Restaurants 40 Entertainment 200 Skin Care 20 Total 270 *Extra Money 20

I Made A Spending Plan(Budget) and I Don't Like It!

I’m trying my hardest not to use that dirty word (budget), but I have slight anxiety over this spending plan thing. I made my spending plan and I do feel a little restricted. Let me explain some things about me. I love shopping, going out with friends, and having fun. I also like nice things and don’t have a problem spending money. My spending plan probably reflects all of these things. I am going to start following my spending plan next week, October 1. I’m a little scared that I’m not going to follow it especially since my birthday is next month. I usually spend a good amount of money celebrating my birthday. I need your help, so I can stick to my spending plan. Take a look at it and tell me if I should make any changes. Keep in mind that I’m a recent college grad that lives with her mom. This means I do not have a lot of bills, but I’m trying to move out of her house around this time next year. I need all the help I can get!

My Monthly Spending Plan

Income Paycheck 1550 Total 1550 Expenses Needs Gas 100 Cell Phone 100 Food Groceries 40 Clothing 200 Emergency Fund 200 Moving Fund 300 Hair 120 Tithes/Offerings/Charity 200 Total 1260 Wants Food Fast Food 10 Restaurants 40 Entertainment 200 Skin Care 20 Total 270 *Extra Money 20

Making A Spending Plan

Now that we know the importance of a “spending plan,” it’s time to make one. Remember we’re not using that dirty word (budget). We are going to use our spending plan to get our financial lives together.  I’m going to make my spending plan and I will share it with you guys.

The first thing we are going to do is gather all records of our income and expenses. This includes pay stubs, bank statements, bills, and receipts from the past month.  We are going to use these records to list our income and expenses in our spending plan. You can use the traditional pen and paper method, an online tool, or software such as Quicken or Microsoft Money. Software programs or an online tool may make it easier to track your spending and make adjustments.

After you picked your preferred method, record your monthly income. Keep in mind that your monthly income can include other things beside your pay. If you receive monthly income from investments, government benefits, rental property, or other business ventures, include this in your income. The next thing is list to your expenses. Place your expenses into categories such as food, rent or mortgage, transportation, clothes, utilities, insurance, unpaid debt, entertainment, etc.  Some of your expenses may vary from month to month. For example, your electricity bill varies based on your usage.  Put a range for these types of expenses.

Once you have made your expense categories, put them into two main categories- “needs” and “wants.” Be honest when listing your categories into “needs” and “wants.” Although you may be a fashionista and like to buy a new pair of shoes every month, this is a want, not a need.You might need your coffee in the morning, but you do not need to buy it from Starbucks every day.  You need to eat and a place to live. You need transportation to work or school.  Generally, your needs include food, basic clothing, housing, transportation, unpaid debts, and your other bills. Everything else is basically a “want.”  You can put money towards your wants once your needs are covered.

If you have no money left once you made your spending plan, you need to reevaluate your needs.”Yes. You need to be entertained, but you do not need to go out to eat every week. Find areas to cut back on your expenses. Eat less expensive food, move back into your parents’ house for a while, use coupons, drive less, and find cheaper forms of entertainment.

Once you created a budget you can live with, stick to it. Evaluate your budget every month and make any necessary changes.   Living with a spending plan takes discipline, but it’s worth it.

Contributor: Carol Szaroleta, Director of Marketing & Business Development, Destinations Credit Union, www.destinationscu.org