I believe that knowing how to make a budget and stick to it is a valuable thing to know how to do as you grow up, especially through your college years. Thankfully I was an over-achiever and started budgeting about the age of 18. No one taught me, I had to teach myself. It was the summer after I graduated from high school that I began budgeting. I had to figure out how to afford my bills and college all on my own with my $8.00 an hour job. So the budgeting began.
I begin by writing down everything I need to pay for whether it was a necessity or not. I figure out how much each item costs in a month, some items it took me a couple of months to figure out. For example, it took me a couple months to figure out how much I needed to budget for food, which I still most of the time under-budget for. I then make envelopes for each item that I need to budget for and write on the envelope what it was, how often I have to pay it (one a month, every 6 weeks etc.), how much the total needs to be to pay the bill and then divide that by how many pay checks I will receive before I have to pay it. So I basically break it down so that I am pulling a portion of money out of each paycheck for each bill. For example, I have to pay $85.00 each month on a loan. I get paid twice a month so I pull 42.50 out of the first paycheck, put the cash in the envelope, then pull 42.50 out of my second paycheck and put it in the same envelope, that way I will have a total of $85.00 to pay my loan when it is due. I do this for all of my bills. Now I know you have probably heard of the envelope system by Dave Ramsey, but believe it or not I was doing this envelope system for years before I knew about Dave Ramsey's envelope system, and mine is a little different. But his is just as effective.
One of the best books that I read on my journey to becoming independent was On My Own Two Feet by Manisha Thakor and Sharon Kedar. I'll put the link to the Amazon page where you can buy it at the bottom of this post. It is a great book; it taught me several things about what you need to know for personal finance; including saving, investing, credit cards, credit scores (which I knew absolutely nothing about! They should teach you this stuff in high school), budgeting, etc. One of the greatest concepts that the book talks about it that there is a "Power Trio of Budgeting." Basically budgeting your income should fall into one of these categories: Future Expense, Foundation Expenses and Fun Expenses. Future expenses should be 15% of your gross income (25% is your taxes) and future expense are your savings, like retirement, emergency fund, big-ticket items, etc. Your foundation expenses are 45% of your gross income and these are all your bills, gas, rent, and food, stuff that you have to have and pay for. Then there is fun expense which should only be 15% of your gross income and these items are things you want not need. If you really try to stick to this strategy, I promise you will be happier in the end! So for me and my nerdyness I color coordinate my envelopes with which category they fall under. And yes I still budget for my fun expenses! For example I budget to get a pedicure once a month. It is one of those fun expenses and its color is purple. This usually costs me $24 and that includes the tip. So I take $12 out of one paycheck and $12 out of the next. Now I know this can be a whole lot of cash in your hand and this may not work for you. For me it works best because as soon as my paycheck gets dropped onto my debit card I almost immediately go and withdrawal the cash I need to do my budget and fill up my envelopes. I put the envelopes away in a drawer and don't touch them until I need to refill the money or pay the bill. This keeps me from having the money on my debit card and easily available to me...because I will spend it.
Another great book is The Money Book for the Young, Fabulous & Broke, it's by Suze Orman. I have not finished it yet but it talks about credit scores, student debt, retirement saving, investing, and making big-ticket purchases. I will include a link to this book to buy at the bottom as well.
Another thing you can do to keep learning about budgeting, saving and investing is to follow Dave Ramsey, Clark Howard, Suze Orman and any other financial advisers on your social media outlets. I follow all three of these people and they are constantly giving advice and writing articles about personal finance.
There are so many things that I could keep writing about as far as saving for retirement, credit cards, credit scores, and other stuff but since this post is only suppose to be about budgeting, I will end it here!
Books:
On My Own Two Feet
The Young, Fabulous and Broke
Tuesday, June 24, 2014
Tips and Tricks
So you're a college student and let's face it, you're pretty much broke. How I have made it this far without living on the streets is a true miracle. But thankfully I taught myself a long time ago how to budget. I will talk more about budgeting later, but today I want to let everyone in on a few secrets that I know. Some of these you may already know, some you may not.
First of all there is this AMAZING website called Chegg. Thankfully someone told me about it my first semester of college and I have used it every semester since. I thought that every college student knew about Chegg, but it occurred to me this semester that not everyone knows about it. I am taking a consumer behavior class this summer and we have to post six purchases that we have made each week. The professor encouraged us to post about the book that we were required to buy for class. As I starting reading I realized that most of the students had bought their book from the campus book store and paid well over $100 dollars for their book. I paid $26! It is so irrational to over spend on books! College students are already low on cash because of tuition, don't pay more money on overpriced books! Also there are several other websites out there that you can rent or buy books from and not spend a lot of money. I always compare the prices on Chegg to Campusbookrentals.com. On most textbook sites, if you are renting, you don't get to choose your return date, and most of the time the date is way past your final exams. Well with campus book rentals you can pick your due date and it will save you some money! It's seriously awesome! Amazon also sometimes has great low prices for books and if you have a Kindle sometimes it is cheaper to rent the e-text. So my recommendation is to start with Google, when you need to buy or rent a textbook google what is out there and find the best price. Trust me it will save you thousands of dollars once your college career is over. And what college student doesn't need to save money?
The other tip I also just discovered. It should seriously be a law of college nature that you only find out about the good stuff your college offers when you only have one or two semesters left. Anyways I just discovered that Kennesaw State University offers free training for programs such as Illustrator and Photoshop. Why did I not know about this sooner?? One day I am going to put a pamphlet out that is titled, "The stuff you really need to know" and hand it out to college students after orientation is over! But back to my point they offer so many classes where you can go and learn how to use all sorts of programs. This is extremely important, trust me, if you did not learn about some of these programs in high school or college you need to learn them! You will use them in your career! Especially if your a marketing major, trust me!
Another great tip/trick on how to save money is that most places whether it's a retail or restaurant give student discounts. All you have to do is show a current school ID. Most of the time it isn't a huge discount, but it certainty adds up over the four years...or six years.
I found this great article on BuzzFeed that has more tips and trick for a college student. Here it is: College Student Life Hacks
See ya'll next time to talk about budgeting :)
First of all there is this AMAZING website called Chegg. Thankfully someone told me about it my first semester of college and I have used it every semester since. I thought that every college student knew about Chegg, but it occurred to me this semester that not everyone knows about it. I am taking a consumer behavior class this summer and we have to post six purchases that we have made each week. The professor encouraged us to post about the book that we were required to buy for class. As I starting reading I realized that most of the students had bought their book from the campus book store and paid well over $100 dollars for their book. I paid $26! It is so irrational to over spend on books! College students are already low on cash because of tuition, don't pay more money on overpriced books! Also there are several other websites out there that you can rent or buy books from and not spend a lot of money. I always compare the prices on Chegg to Campusbookrentals.com. On most textbook sites, if you are renting, you don't get to choose your return date, and most of the time the date is way past your final exams. Well with campus book rentals you can pick your due date and it will save you some money! It's seriously awesome! Amazon also sometimes has great low prices for books and if you have a Kindle sometimes it is cheaper to rent the e-text. So my recommendation is to start with Google, when you need to buy or rent a textbook google what is out there and find the best price. Trust me it will save you thousands of dollars once your college career is over. And what college student doesn't need to save money?
The other tip I also just discovered. It should seriously be a law of college nature that you only find out about the good stuff your college offers when you only have one or two semesters left. Anyways I just discovered that Kennesaw State University offers free training for programs such as Illustrator and Photoshop. Why did I not know about this sooner?? One day I am going to put a pamphlet out that is titled, "The stuff you really need to know" and hand it out to college students after orientation is over! But back to my point they offer so many classes where you can go and learn how to use all sorts of programs. This is extremely important, trust me, if you did not learn about some of these programs in high school or college you need to learn them! You will use them in your career! Especially if your a marketing major, trust me!
Another great tip/trick on how to save money is that most places whether it's a retail or restaurant give student discounts. All you have to do is show a current school ID. Most of the time it isn't a huge discount, but it certainty adds up over the four years...or six years.
I found this great article on BuzzFeed that has more tips and trick for a college student. Here it is: College Student Life Hacks
See ya'll next time to talk about budgeting :)
Tuesday, June 3, 2014
First Blog
My first blog ever. It took me awhile to figure out what I wanted to blog about. We are suppose to pick something that we enjoy or are passionate about. A few things came to my mind. I enjoy crafting, scrap-booking, and learning how to do DIY projects. I also enjoy baking, reading books, watching movies, and spending time with family and friends.
But to be honest I wouldn't put any of these at the top of my list and say "This is what I am passionate about."
To be passionate means having an intense emotion or strong feeling about something. Maybe it is just me, or maybe I haven't really gotten a chance to dive deep into any one of these hobbies and really find a passion for it. Being a college student and having to work full time doesn't give you much time to do the things you love to do or are passionate about. Work. Homework. Sleep. School. Homework. Sleep. I think you get the picture... On top of that there's other commitments, relationships with friends, family and boyfriend to maintain. Somewhere in there I have to eat. Oh and exercise to lose the "freshmen fifteen" that I never got rid of. And let's not forget I have to have fun and enjoy my twenties. *Sigh* There just isn't enough time in the day. And before you say I sound over-dramatic, don't get me wrong I am thankful that I have a job and am able to go to college. Sometimes I just wish I had more time to do other things I enjoy. I just do the best I can with my current situation. I do my very best with my school work and getting involved with my college. I try to be the best employee that I can be at my job. I do this because that is what I have a "strong feeling" about. Doing my best, right here, right now.
So I guess this is what I am passionate about. Being a college student and working to make it by. I'm passionate about just being right here in this moment, on this path, where ever it may lead. Being passionate about striving to reach my goals and dreams. Being passionate about not giving up no matter how hard it gets. Knowing that one day I will reach my goals of graduating college and finding a career I love. Maybe then I will be able to immerse myself into a hobby and be truly passionate about it. Or maybe by then I will just be passionate about being a newly wedded wife ;)
Where am I going with all of this? I have always wanted to help other people out in some way. I don't really know how I will do that with my major, Marketing. But for now, I had a thought that maybe I could help someone by telling them how I am making it through life juggling school, work, a social life, and other things.
So I want to help my fellow college students, in any way that I possibly can. Whether it be ways to save money, or how to live on a tight budget, or how to get yourself organized. Hopefully I can help my sharing quick and easy recipes or what I like to call "life hacks." I will also be sharing different ideas and things that I learn along the way on my journey to success.
-Megan
But to be honest I wouldn't put any of these at the top of my list and say "This is what I am passionate about."
To be passionate means having an intense emotion or strong feeling about something. Maybe it is just me, or maybe I haven't really gotten a chance to dive deep into any one of these hobbies and really find a passion for it. Being a college student and having to work full time doesn't give you much time to do the things you love to do or are passionate about. Work. Homework. Sleep. School. Homework. Sleep. I think you get the picture... On top of that there's other commitments, relationships with friends, family and boyfriend to maintain. Somewhere in there I have to eat. Oh and exercise to lose the "freshmen fifteen" that I never got rid of. And let's not forget I have to have fun and enjoy my twenties. *Sigh* There just isn't enough time in the day. And before you say I sound over-dramatic, don't get me wrong I am thankful that I have a job and am able to go to college. Sometimes I just wish I had more time to do other things I enjoy. I just do the best I can with my current situation. I do my very best with my school work and getting involved with my college. I try to be the best employee that I can be at my job. I do this because that is what I have a "strong feeling" about. Doing my best, right here, right now.
So I guess this is what I am passionate about. Being a college student and working to make it by. I'm passionate about just being right here in this moment, on this path, where ever it may lead. Being passionate about striving to reach my goals and dreams. Being passionate about not giving up no matter how hard it gets. Knowing that one day I will reach my goals of graduating college and finding a career I love. Maybe then I will be able to immerse myself into a hobby and be truly passionate about it. Or maybe by then I will just be passionate about being a newly wedded wife ;)
Where am I going with all of this? I have always wanted to help other people out in some way. I don't really know how I will do that with my major, Marketing. But for now, I had a thought that maybe I could help someone by telling them how I am making it through life juggling school, work, a social life, and other things.
So I want to help my fellow college students, in any way that I possibly can. Whether it be ways to save money, or how to live on a tight budget, or how to get yourself organized. Hopefully I can help my sharing quick and easy recipes or what I like to call "life hacks." I will also be sharing different ideas and things that I learn along the way on my journey to success.
-Megan
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