How I Budget And Save Money
When it comes to money, I'm a pretty frugal person. I'm the person that will see something cute, see the price tag then walk away in shame. My mom and I didn't have much growing up so I've learned to hold onto money as tight as possible so I'd never have to worry about being flat broke.
Now please don't think that because I have a decent amount saved up that I just spend willy-nilly. WRONG. I have what I call a 'broke mindset'. If I get invited out by friends and look at my bank account, of course I can go. However, if I know that I could save that money for something bigger, I have no problems saying "sorry guys, I'm broke". This mindset is the sole reason why I have saved so much. If I believe I'm broke, I won't spend. Here are a few other things I do to make sure I don't ever hit $0.00 in my bank account.
I'd be misleading you all if I didn't say I didn't splurge once in a while. I love when the seasons change and I can convince myself that I need a whole new wardrobe. To combat any guilt, every season I go through my closet and donate anything I know I won't wear again. This gives back to others while also makes room for something shiny and new.
Write Out All Of Your Bills
One of the best things I did to maintain good savings is to write down alllll of my bills and set reminders to when they're due. My bills include student loans, a phone bill, Adobe CC, tuition, my laptop etc. This helped me determine how much of my check will go to bills, fun, and savings. It can seem daunting once on paper but don't get discouraged! I know exactly what day each of them is taken out of my account or when I have to manually pay them. By keeping these dates in mind I can assess when it's ok for me to spend a bit. If I know that my tuition payment is coming, I'll be more hesitant to go out to a fancy restaurant and spend $40+.
Put Bills On Auto Pay
It can get pretty stressful when you have to remember when to sit down and pay all of those bills. Auto pay allows you to schedule exactly when they are paid and make them recurring so you won't have to worry about them each month. I've realized that the more I do auto payments, the less I have to worry about paying bills on time and making sure that I'm putting money away. The only two bills that I manually pay are my phone and laptop bill so I can make sure those companies don't try to overcharge me or swindle me.
Set Automatic Transfers
Another thing I do is set up a recurring transfer from my checking to savings. This way I won't have to think about it and my savings slowly grows. My student loan payment comes out of my savings so the transfer also replenishes what was lost. It's so nice seeing your savings amount grow and grow each month. After you determine how much money can go to bills and fun, use the rest of that as your automatic transfer. It's perfectly fine to start small until you feel comfortable enough to increase it.
In all, I think I'm a pretty good saver. It also helps that my friends are super similar to me in having the broke mindset. If an event is free, we're there. Those two months I was unemployed put a dent in my bank account so I'm doing the best I can to bring it back up. If only I could stop buying food all the time...
How do you save money?