An In Depth Look at My Policies

I've mentioned that I'm serious about my budget. But, I don't think you understand how serious...

I have policies.

This is something that I recommend for all budgets. As well as finding the motivation for your budget/goals. My budget is the thought of getting an apartment with Jon. Every time I think about spending, I look at the floor plan of the apartment we want and I imagine us living together.

Back to my policies.

One of the biggest policies I have is that I have to sign up for direct deposit for all of my jobs. Always. This saves me time and money (no more trips to the bank that's all the way across town!!!) From there, I calculate how much money I need for my bills that week. That's how much money I leave in my account. The rest gets transferred into my "discretionary" spending account. I make sure I set enough aside for my gas costs and any other necessary costs for the week.

And the rest gets put straight into my savings.

And I forget about that money.

I don't keep track of how much money is in my savings. This makes it easier for me to forget about how much is in there.

I also take five to 10 minutes every day to review my finances from the day before. I can afford five or ten minutes every day to make sure I'm on track financially. At the end of the week, I give myself 30 minutes to make sure everything is in order. And at the end of the month, I review what budgeting methods I've used didn't work for me. I adjust my budget for the next month. And I mark how far along I am in my goals.

I have also asked someone to review my finances for me, in order to keep me honest. Though we've agree upon a one month review, I might ask him if he'll be able to review it weekly.

I have agreed to try to keep $10 in my "bill pay" checking account at all times, in order to prepare for incidentals.

I've also decided to save my change. The change from cash transactions goes straight into a mason jar for my boyfriend. (I'm saving to help him build a new computer.) When I have a debit transaction, I round-up and transfer the difference to my savings. It may not seem like much, but I saved about $20 in just a couple of months doing this with cash.

And whenever I want to buy something that isn't related to my apartment, I add it to my "Thirty Day" List. If at the end of the Thirty Days I still want to buy it and if I have the money for it, then I can buy it.

It's a good idea to create some policies for yourself. I like that I have some that keep me honest. And I like that I have built in time for just my finances every day.

My Spreadsheet

I know I mentioned in yesterday's post that I use a spreadsheet to keep track of pretty much everything. I use it to keep track of my income for the month, what categories of spending I have, how much I plan to spend in the those categories, how much I do spend in those categories, the difference between the two, how much debt I have remaining, what my savings goals are, how many deposits I've made into my savings account, and every single one of my transactions.

Here's a link to the spreadsheet: https://docs.google.com/spreadsheet/ccc?key=0Ah_vY6PG0d_vdHdzekh0SmpyUDdDNF9RMkJEUHdmMWc

I utilized Google Docs for a few reasons:

• These remind in the Cloud
• I have Google Drive for my desktop, so I can access these documents from both my home computer and any other computer
• Google is awesome
• This is much more user friendly than some other applications... At least, for me
• I like the colors
• I can prioritize documents and whatnot

So, yeah. I always use Google Docs. I usually always use a Google product. I just love for some Google. 

But, back to the spreadsheet...

So, after you've been linked to it, you'll see 5 different colors. Color coding my expenses helps me easily find where each amount belongs. And it's pretty. 

The first column (yellow) is fairly easy. Just enter each paycheck - or other amount of income - you receive. And then find the sum. 

The second column (red) just lists each bill or other expense you have. And because everyone's bill situation is different (I know I don't have half of these expenses... When I'm living "in the real world", this will be the template for my spreadsheet), feel free to add or remove expenses as necessary. Every cent should belong in one of these categories, unless you've put it towards savings. We'll talk about that later. 

The third column (red) lists what you believe you will spend on each expense. For fixed expenses, this should be right on track. But some of the other expenses will vary, and it's nice to see if you've overestimated or underestimated your expenses. It's also an important step in understanding your finances in general. Make sure you add them up!

The fourth column (red) is where you will put what you actually spent on your listed expenses. Make sure you add them up.

The fifth column will be where you figure out the difference between your proposed expenses and your actual expenses. This is where you'll have that first little idea. The one that says, "I spend $50 over my Fun Budget... BUT WHEN?"

I used to ask myself that all the time. 

The sixth column (darker blue) is where you'll keep an eye on how much debt you have left at the end of the month. If one of your financial goals is to pay off debt, then you'll find this to be a good tool. Challenge yourself to bring one of your debts done to $0 and use this to help you keep track of that success. 

The seventh column (green) is where you'll keep track of what you're saving for and how much it is and the total amount of money you've saved. 

The eighth column is where you'll document each of your deposits into your savings account and then add the amount up at the end of the month. 

The last column (lighter blue) is the one where you keep track of each time you spend money. Even the Polar Pops or the $1 taco. It must be logged. You should create a column for every day of the month. And if you happen to have a day with no money being spent (except bills), find a SMALL award for yourself. Maybe a piece of chocolate? When you make the transaction, make sure you log where the transaction was made, so you can better keep track of where you might be unintentionally draining your wallet. 

Welp... I hope this helps someone!!! 

Methods I've Used to Save Money (And Why They Didn't Work)

I have a serious budget. Like, no joke.

Here is a list of the methods that I'm currently using:

• The Birdy
• Spendful.com
• Spendbrite.com
• Budgetsketch.com
• Pen and paper
• checkbook register
• monthly overview
• bill checklist
• detailed bill list
• a spreadsheet
• a calendar that reminds me of when I get paid, when to review my finances, when I can make major purchases, and when my bills are due. I use Google Calendar. 
• the envelope system
• "Thirty Day" List

I'm incredibly serious about budgeting. When I've fallen in love with a goal, that's when I break out the budgeting techniques. 

In the past, I've used a few other budgeting techniques. I'll give you an overview of them, the pros and cons, and reasons why they didn't work for me. And if I'm giving them a second chance, I'll tell you why....

Checkbook Register:

The run of the mill register that comes with the checkbook. I highly recommend ordering checks, fyi. Even though they're becoming obsolete, there are still some people who refuse to go digital with their accounts. My mother, for example. I've written her at least two or three checks in the last six months. I also used a check to pay my recruitment fee when I decided to go Greek. Sometimes, it's just easier to write a check. Just, make sure you log it in your register. And make sure you keep your register up to date...

• PROS: This forces you to have intimate knowledge of your spending habits. This is great for someone who just whips out their debit or credit card to make purchases, because they still have to look at that receipt. And then make calculations. And then they get to wince at the fact that they just spent $4 on a latte and now they have less than $10 left in their account. 
• CONS: This isn't automated, so you don't HAVE to use it. Forgetfulness can lead to over drafting. Some people just don't have the willpower to log their transactions after they've reached a low amount in their account. For me, it was always when I hit below $15 in my checking account. 
• WHY THIS DIDN'T WORK FOR ME: I just didn't have the willpower to keep track of my expenses after my account reached a low level. I also thought that my time was too important to sit down for 60 seconds to log a transaction. 
• WHY I'M GIVING THIS A SECOND CHANCE: I have run my account to below one dollar before. I can never do this again. To help my with my will power, I've asked a friend to go over my finances each month to hold me accountable. If I don't log something, the guilt will eat at me. And this is what will keep me logging even those polar pops I sometimes pay for with my debit card. 

MINT: 

An online application that helps you keep track of your goals and transactions and even places them in categories. 

• PROS: It keeps track of your goals and gives you advice on your next financial step. It divides your transactions into categories. And it automatically logs your transactions, so you can't lie to yourself. It is also kind enough to help you make a budget and send out a weekly email to help you keep track of your finances. It also keeps track of your net worth. Oh. And it's free. And it allows for mobile access.
• CONS: It doesn't place your transactions in the proper category. I once had a food transaction at Wal Mart be placed under "gas." It also asks for your account information. And lastly, if you have a credit card at the same bank as one of your checking accounts, it states that you already have an account set up at this bank. However, it let me set up a checking account and a savings account at the same bank. 
• WHY THIS DIDN'T WORK FOR ME: Pretty much every con listed. I found the fact that I would have to go through and properly categorize expenses that were improperly placed to be rather tedious. And if I had to spend time on categorization, then I might as well do it in my own fashion. 

MEMORY: 

Using your memory to keep track of your expenses. Many people choose to take this route. 

• PROS: There are none. Whatsoever. 
• CONS: Where to begin...? Failing memory, the ability to lie to yourself, the little transactions no one thinks about, human error in math... I mean, the list can go on and on. 
• WHY THIS DIDN'T WORK FOR ME: All of those cons. I ended up having to take money out of my savings to pay my credit card bill. That's not what my savings is for. I've had to do this more than once. My savings has been zeroed out. 

ONLINE BANKING: 

If your bank offers mobile banking, this is another great tool for keeping track of your transactions. 

• PROS: This is your bank's records. You can ask to have your monthly statement emailed to you, you can access other bank services, you can place a stop on your account.... The list goes on and on.
• CONS: Sometimes these can be difficult to navigate. 
• WHY THIS DIDN'T WORK FOR ME: I had a tendency to just glaze over my monthly statements. This really didn't help me accomplish my goal of keeping track of my spending. 

And there it is. My current methods and my past methods for keeping track of my goals, budget, and where my money has gone. 

What I'm Saving For (The Scary Reality of an Apartment)

So, at this point, I've given you an introduction into my life. And I've told you about the bills I pay each month.

I have yet to mention savings.

Savings are a big part of my plan.

Everyone recommends having an emergency fund.

Well, this probably wasn't the greatest idea, but I decided to go ahead and skip that idea.

I'm savings for an apartment. An apartment with the love of my life. The love of my life who will be working a full time job while I work FOUR jobs and go to school.

I'm being stubborn (and maybe a little bit stupid here), but we can set up an emergency fund after we have our apartment. And until we pay for that apartment, my savings fund is pretty much doubling as my emergency fund.

No one recommends this.

Not a single person.

But, as a full time student and as someone who works all the time and is a member of a sorority (which is a very active lifestyle by itself), I don't have the time to manage more than a couple of accounts. I have three. Two checking accounts and one savings account. I have one checking account for bill pay only, and the other checking account is used for discretionary spending. For me, discretionary spending does include my toiletries and my gas. I can control how much I drive in a given week. And I can control how much I spend per month on toiletries. And food. Food counts as discretionary, because I have a meal plan on campus. And I can still eat at home when I need. :)

BUT

Back to what I'm saving for: THE APARTMENT

I'm going to break this down into each individual charge...

• $70 application fee ($35 for each of us)
• $150 redecorating fee (WE CAN PAINT!!))
• $100 - $505 security deposit
• $434 - $505 first month's rent

And then, we also have to save up to furnish our lovely apartment.

Lucky for me, I already have a few things that we'll need:

• a floor lamp
• a bedroom suit
• silverware
• glasses 
• a knife set
• some small kitchen necessities
• Christmas decorations (MY FAVORITE HOLIDAY)
• bookshelves
• a desk
• a table lamp

And there are probably some other little things here and there that I can't think of.

My mother is onboard with Jon and I moving in together, so she's promised to help me find what we need to furnish an apartment. 

All in all, I'm hoping to spend no more than $500 on furnishing our small apartment. It's completely doable. :)

Bills, Bills, and More Bills

I'm 20 years old and I got my first job about 1.5 years ago. All of the money I earned from that one-time gig went to paying off the costs of being a commuter. For me, that was my biggest concern.

Now, I wish that paying for gas is the only thing I have to worry about.

Now, I have bills.

And I'm not even a full adult yet.

I can't wait for those years.

Discount my sorority payments, and I've never been late on a payment.

I have a cell phone "bill." And I put quotations around the word "bill" because I have a prepaid cell phone. I pay $25 a month for this. I have a smartphone. My cell phone service is Net10. I have 750 minutes a month to use for talk, text, and web use. Each text only takes .5 a minute from my monthly limit. And, if I think I'm going to have a high rate of cell phone usage, I can always switch to the $50 a month unlimited plan. When Jon and I live together, we will both have a plan like this, and we'll each only have $25 a month for our cell phone.

I also have a car insurance payment that is only $50 a month. I've been lucky in that most months, mom pays my car insurance. HOWEVER, she will no longer be doing that, since I'll be "leaving the nest" soon.

It was my idea.

I have a sorority bill that I have to pay each month. That I'm also behind on. I've spoken with my sisters about this. They know my situation. And they're here for me. The support they offer is something I would pay a billion dollars for, so I don't mind this payment at all!

And last (FOR NOW), I have my credit card payment. Not once have I been able to make my credit card payment in full. I have less than $300 in debt though. Also, I have never been late on this payment. I am incredibly proud of myself for this. Up until now, I've been paying about the minimum payment each month. THAT STOPS THIS YEAR!!!

There.

It's out on the Internet.

I know I don't have a lot of bills.

But, when I agreed to go to a school close to home so I could commute, I never thought I would have to pay any bills until I graduated... (That was supposed to be the plan, fyi.)

But as I grew financially, I realized that I take satisfaction in paying my own bills.

Not only do I pay my own bills, but I pay for my own gas, my own toiletries, and typically my own food.

I have a good idea of what it's going to cost me to pay my bills and provide food and toiletries for myself. Jon, however, is another case...

Today Marks the Day

I'm 20 years old. I live with my family. I've had a boyfriend for 4 1/3 year. He graduates this year from college. And I graduate from college in 2015.

We finally decided to make the big leap.

We're getting an apartment together in, at the earliest, late July.

BOY

I'm freaking out.

I have four jobs and I've got a full course load.

My boyfriend (JON) doesn't have a job, but he didn't need one while in school because he doesn't commute.

And neither of us expected to make this decision. We had entertained the notion of moving in together at the beginning of the year. Then we forgot about it.

And then I sort of gave him an ultimatum without meaning to (long story). And he finally agreed to take that next step.

I have my own bills to pay. Plus, I have to save up for all the fees that come with signing the lease for an apartment. And then, I have to buy stuff to furnish our apartment.

I'm feeling the pressure.