i’m actually gonna check that now, but it’s probably true!!!

i’m actually gonna check that now, but it’s probably true!!!

I think what your doing is admirable. Many people in their 20s struggle with finances. And I think your bang on with your analysis that its the little things that kill us. Social stuff does hurt too. Going out for lunch every day only costs 8 bucks but it adds up fast when you are tight on money.

Now I am not a tightwad (at least I don’t think so) but have always been good at saving money. Saved up $4000 for university working part time in HS. Paid off $7000 in student loans in 19 months. I am not trying to brag, I mention it to lend credibility to my personal finance success.

Here are a few organizational budgeting tips I use so that I am not “coasting” into payweek, time after time.

1. Turn everything into a little game. Remember when Principal Skinner was trapped in his garage and he made a game of bouncing the basketball in an hour to keep his sanity. Well I approach spending and saving the same way. Save money and plan it out. Then try to beat it, when you do, reward yourself. I like to think of my bills and debt in terms of tetris. The more i pay down bills and debt the more money I have leftover. Plow down your debt/expenses like getting “tetris” in Tetris. Now video games work for me, something else will work for you, ie soccer.

2. Plan out paydays and your fixed bills. I know the last thing you want to do on payday is pay bills but I find this is the best way to manage your money. Pay your bills first, then what is leftover is for spending / personal. I get paid every 2nd friday. The first reminder i have on my BB and outlook is “bill payments”. Unless you make commission your payday is the same amount every two weeks (this actually helps when budgeting). Setup meetings in your calendar for each payday. That way outlook reminds you to pay your bills. In these meetings put your fixed expenses like rent, electricity etc and also put debt payments (student loan, credit card, even RRSP payments). Then align your bill payments for each paycheck based on the due dates. If power is due at the end of the month make sure you have electricity payment in your “2nd paycheck”. That way you can analyze each upcoming payday, the bills that are due and how much “leftover” you have for groceries and personal. Once done paying bills, plan your next paycheck. Once you get good at this. You will start paying your bills early to get more “leftover” amount for the next paycheck. So figure out what is reasonable for a two week period for leftover. ie 100 dollars for groceries. 50 micellaneous (shampoo, toothpaste, toilet paper). 50 for personal and try to stick to your leftover.

3. Credit cards and debit cards. Ahhhh the most evil thing our 20 somethings struggle with, credit cards. I know this may sound weird at first but here’s what i do. Use your credit card only for big purchases. (flights, home renos, mattress, furniture etc). I know it sounds weird cuz you think of the interest rate but hear me out. Big purchases mean lots of reward points but it also means you think about it a lot more. Which means your more likely to pay it down in big chunks. ie tetris. If you do make big purchases with credit card. Try to pay off at least 50% of it right away. Then put the rest in your “bill payment reminders” as VISA $100, MC $100 etc. the reminders will help you to make big chunk payments. Use your debit card for small purchases and everyday stuff. Your debit card is “real” money. Once its gone its gone (also dont get overdraft on your checking account). So use your debit card for small purchases. And then when your out, you no your out of “leftover”. And can better budget your money next time.

4. Social stuff. Well buying beer after work is tough but unfortunately getting your finances in order sometimes means being hermit for certain periods. Cut back on social outings that are “one or two beer nights”. I know it sounds odd, but budgeting for a big night on the town (ie birthday) is alot easier than 20 bucks a day on “that one beer after work”. Also, if you have a cool apartment or house. Use it. Make your place THE place to hangout with friends. That way you save on money ie going out for food. You then save on transportation and food becomes cheaper. ie have potlucks or have friends over and order pizza but everyone chips in. Rockband and beers saves so much money its silly. That and its a kick ass time. Also if you are aboozehound like I am, buy in bulk. I love my GIN so I always buy quarts or 40s. I don’t drink it all in one night but a 40 can last a couple weeks if its that “one drink” you have when you get home to relax. See tasty gin and tonic after work cost you 1-2 bucks instead of 6.50.

5. Think of saving / paying off your debts as a game. Hey didn’t he already say that. Well I did but its worth repeating. When paying down my student loans, all I thought of was, man won’t he be awesome when I don’t have to make loan payments. Imagine what I can spend that money on. Thinking like that helped me pay it down faster. And as it got lower I started making larger and larger payments. Larger and larger payments showed up in my “bill payment” reminders but also let me budget less because I was making larger debt payments. And the allure of that “extra money” was motivation to keep me going.

Anyway that is my rant. Hope it helps.

Thanks,

I think what your doing is admirable. Many people in their 20s struggle with finances. And I think your bang on with your analysis that its the little things that kill us. Social stuff does hurt too. Going out for lunch every day only costs 8 bucks but it adds up fast when you are tight on money.

Now I am not a tightwad (at least I don’t think so) but have always been good at saving money. Saved up $4000 for university working part time in HS. Paid off $7000 in student loans in 19 months. I am not trying to brag, I mention it to lend credibility to my personal finance success.

Here are a few organizational budgeting tips I use so that I am not “coasting” into payweek, time after time.

1. Turn everything into a little game. Remember when Principal Skinner was trapped in his garage and he made a game of bouncing the basketball in an hour to keep his sanity. Well I approach spending and saving the same way. Save money and plan it out. Then try to beat it, when you do, reward yourself. I like to think of my bills and debt in terms of tetris. The more i pay down bills and debt the more money I have leftover. Plow down your debt/expenses like getting “tetris” in Tetris. Now video games work for me, something else will work for you, ie soccer.

2. Plan out paydays and your fixed bills. I know the last thing you want to do on payday is pay bills but I find this is the best way to manage your money. Pay your bills first, then what is leftover is for spending / personal. I get paid every 2nd friday. The first reminder i have on my BB and outlook is “bill payments”. Unless you make commission your payday is the same amount every two weeks (this actually helps when budgeting). Setup meetings in your calendar for each payday. That way outlook reminds you to pay your bills. In these meetings put your fixed expenses like rent, electricity etc and also put debt payments (student loan, credit card, even RRSP payments). Then align your bill payments for each paycheck based on the due dates. If power is due at the end of the month make sure you have electricity payment in your “2nd paycheck”. That way you can analyze each upcoming payday, the bills that are due and how much “leftover” you have for groceries and personal. Once done paying bills, plan your next paycheck. Once you get good at this. You will start paying your bills early to get more “leftover” amount for the next paycheck. So figure out what is reasonable for a two week period for leftover. ie 100 dollars for groceries. 50 micellaneous (shampoo, toothpaste, toilet paper). 50 for personal and try to stick to your leftover.

3. Credit cards and debit cards. Ahhhh the most evil thing our 20 somethings struggle with, credit cards. I know this may sound weird at first but here’s what i do. Use your credit card only for big purchases. (flights, home renos, mattress, furniture etc). I know it sounds weird cuz you think of the interest rate but hear me out. Big purchases mean lots of reward points but it also means you think about it a lot more. Which means your more likely to pay it down in big chunks. ie tetris. If you do make big purchases with credit card. Try to pay off at least 50% of it right away. Then put the rest in your “bill payment reminders” as VISA $100, MC $100 etc. the reminders will help you to make big chunk payments. Use your debit card for small purchases and everyday stuff. Your debit card is “real” money. Once its gone its gone (also dont get overdraft on your checking account). So use your debit card for small purchases. And then when your out, you no your out of “leftover”. And can better budget your money next time.

4. Social stuff. Well buying beer after work is tough but unfortunately getting your finances in order sometimes means being hermit for certain periods. Cut back on social outings that are “one or two beer nights”. I know it sounds odd, but budgeting for a big night on the town (ie birthday) is alot easier than 20 bucks a day on “that one beer after work”. Also, if you have a cool apartment or house. Use it. Make your place THE place to hangout with friends. That way you save on money ie going out for food. You then save on transportation and food becomes cheaper. ie have potlucks or have friends over and order pizza but everyone chips in. Rockband and beers saves so much money its silly. That and its a kick ass time. Also if you are aboozehound like I am, buy in bulk. I love my GIN so I always buy quarts or 40s. I don’t drink it all in one night but a 40 can last a couple weeks if its that “one drink” you have when you get home to relax. See tasty gin and tonic after work cost you 1-2 bucks instead of 6.50.

5. Think of saving / paying off your debts as a game. Hey didn’t he already say that. Well I did but its worth repeating. When paying down my student loans, all I thought of was, man won’t he be awesome when I don’t have to make loan payments. Imagine what I can spend that money on. Thinking like that helped me pay it down faster. And as it got lower I started making larger and larger payments. Larger and larger payments showed up in my “bill payment” reminders but also let me budget less because I was making larger debt payments. And the allure of that “extra money” was motivation to keep me going.

Anyway that is my rant. Hope it helps.

Thanks,

The big things are alcohol, buying combo meals (I only ever get the sandwich, no extras, no drink), and impulse consumer purchases. But even those only add up to about $150 a month, not much compared to your rent, utilities and any interest on debt.

The big things are alcohol, buying combo meals (I only ever get the sandwich, no extras, no drink), and impulse consumer purchases. But even those only add up to about $150 a month, not much compared to your rent, utilities and any interest on debt.