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In the beginning of the year I shared three financial resolutions that I was going to tackle for the new year. Now that we are more than half way through the year, I want to share my progress along with tips that have helped me save money, pay down debt and stop using plastic.
Goal No. 1 – Save more money
I had to cut down my entertainment budget this year from $40 to
$20 per month so I could put away more money and pay off debt. If you follow us on , you know I still catch a movie now and then, but I mostly take advantage of free entertainment near me. My eating out budget has drastically dropped now that I’m no longer in school and I’m able to work and cook at home. I was spending about $150 a month on food during my jam-packed senior year. Now that’s down to about $35 a month. I’m saving 25% of my earnings each month by having my bank automatically transfer the money when I deposit my check. I also keep track of my budget on the Mint iPhone app. If I go over my budget, Mint notifies me.
Goal No. 2 – Stop using plastic
I used to charge my morning coffee on my credit card and ended up paying the price — big time! I called the credit card company in the beginning of the year to lower my APR, but eventually walked away after I got the run around and my credit limit was lowered. I didn’t want to close the account because I’m trying to build my credit. I read in one of Suze Orman’s books that closing a credit card does not affect your credit unless it’s the one with the longest history. My retail credit card that recently saved me more than 50% off on back to school shopping is the one with the longest history. So I paid my final credit card balance and gave it the boot! I’ve been using my debit card ever since without a problem. If I don’t have money then I don’t make purchases!
Goal No. 3 – Paying off debt
All my college expenses where paid out of pocket so my main goal this year was to continue paying off the debt without defaulting. Till now, I’ve also managed to reserve 10% of my income to pay off my debt by having it automatically deducted from my paychecks. Meeting my budget has been hard at times, but I’ve found that sitting down every week to plan where I can cut down expenses really helps. I haven’t seen a Mint notification letting me know that I’m over my budget in a while.
Welcome to Niconail! I’m Niko, and I’m so glad you’re here. I am an obsessive bargain hunter and penny pincher, and I am determined to live a full life without EVER paying full price.
Wow, how do you spend $35 a month on food?
@Valerie That’s just on eating out. I have another budget for groceries.
Yazmin, it looks like you’re using the common sense approach to budgeting, which is the best one. There is no way to reduce one’s debts without reducing expenses. Too bad all our politicians can’t get that through their thick skulls! Those of us who’ve had to cut back due to reduced income (or whatever) know how to stretch a dollar wherever necessary and/or possible. I know Bobbi does that as well as keeping regular records.
so is that 35 for “eating out” actually your morning coffee or is that another budget?
Just think how much you would save if, God forbid, you make your own coffee at home!
regarding plastic, there is nothing wrong with using it, provided you have the discipline to pay it off every month. Paying interest on card credit debt isn’t only expensive, it’s foolish.
I do make my own coffee every morning and take it to work along with my packed lunch. However, I pay everything with credit cards (including gas purchases for my car, groceries, ect.) that give you rewards and pay them off in full each month. I do keep track of the spending as if it were coming out of my checking account. I’ve found that this enables me to keep track of where I am spending money along with being rewarded for paying it in full each month.