Authored by Stephanie May, NBR Summer 2009 Intern
Over the summer we dove into the idea that if you spend less during the week, you can make up for times when spending gets a bit more out of control (e.g. the weekend). But now I'm really starting to question that theory.
October was a semi-normal month for me until this last week. Boulder, Colorado puts on a Halloween celebration that rivals the best of them. It's not just one night up here. It's a whole week affair. And forget costume repetition. Creative, elaborate, and different costumes are a must. As you can imagine, this can get extremely expensive. Halloween wiped out my bank account, leaving me with a grand total of 6 dollars. Would I trade the fun I had for a bigger bank balance? Absolutely not. But, when I saw what I spent, I did wonder, "When will this get easier?"
My first thought was, "This will be easier in November." My logic was that like the weekend, October was a time of higher spending. November, like the regular week, would be more relaxed...and inexpensive. Then I realized that's absolutely not true! I have a friend coming into town this weekend, and I am going to Ohio the following weekend to visit another friend. Then the month wraps up with Thanksgiving. I'll be off of school for an entire week, spending time (and money) with all my friends back home. November is going to be much worse!
Then I looked to December. I wished more than thought, "December will be the month my spending will go down." But, OF COURSE, that's not true. With all of the holiday festivities and buying of Christmas presents, December won't be a month of cut backs for me.
All of this thinking finally led me to accept a conclusion I've been fighting against for months: I need to figure out how to budget. I have dabbled in budgeting, but I haven't found a formula that works. For a while Mint.com was really helping. Then I got frustrated because it took several days for the site to process my purchases. So I gave up.
I am surviving. I haven't gone over my allowance, and I'm not in any kind of debt. So overall I'm still coming out on top. But I know that there's a better way. If I made and kept a budget, I would be able to put aside some money for my Costa Rica mission trip in January. I'd probably be able to put some money into savings for next year, and I might even be able to buy some new winter clothes!
So, I guess I figured out the answer to my question. When is this going to get easier? NEVER! There will always be something to spend money on. The only way to cut down and to make sure I am spending money in a conscious, effective way is to embrace budgeting.
I don't know exactly how I'm going to make this work. I might go back to my old friend Mint.com, or I might try to keep a running total of how much money I'm spending in each category. I really don't know. It might be time to call up my financial guru Aunt Tracy for some advice.
If you have any ideas let me know. My Fiscally Fit followers... It's time to build a budget!
Follow me on Twitter @FiscallyFit!
Comments
DMD, as someone who works for a reputable television network, I can confidently say every network strives to target a diverse audience and during such a transitional time for the TV news business, it's a top priority. PBS/NBR is clearly one of them. While many of their other shows/blogs target the people that want straight numbers, Ms.May's blog seems to be targeting a college/young adult/post-grad audience, with a few wiser adults here and there looking to help out the younger generation that is suffering through a poor economy because of their parents mistakes. Different people want different things from their news sources. Just because you don't like her blog is by no means a gauge of its validity or popularity. I don't know how long you've been reading it, but it's been going on since mid-summer. That's a big deal in today's age of limited attention spans. While you may fit into Susie Gharib's audience, you clearly do not fit into Ms.May's. Therefore, your condemnation of NBR for publishing this blog is unjustified. I personally, and I'm sure I'm not alone, applaud NBR for providing such an honest insight into the everyday financial struggle of today's youth, whom by the way, is the future. Thank you for reading.
"...a college girl's story that highlights her successes and yes, failures...."
You're right Suzanne--- maybe my criticism should not be aimed at Ms. May; it should probably be aimed at NBR. You see, I read and watch The Nightly Business Report for the "business" part of the news. For me the "business" part of the news is reporting on banks, credit cards, unemployment, the stock market, the Fed, health care, budget deficits... you know, things like that. I don't believe that a college girl's fiscally fit or misfit story belongs here. I think it's better suited for MTV or a Suze Orman informercial.
Hey DMD, how about you stop hiding behind the anonymity of a pseudonym and man up when expressing your opinions. That brings me to my next point, if you think Ms. May is such a financial misfit, how bout you stop reading her blog and expressing your opinions about it? This is a college girl's story that highlights her successes and yes, failures. She doesn't need someone's criticism, unless they have a solution to her problem.
Hi Stephanie,
When you figure this out...Let me know because I am still challenged to live within my means. Although keeping track of your spending is rather like writing down everything you eat for three days before you embark on a diet (budget) for a reality check on how much you are actually eating (or where is all your money going.)
You are evaluating your spending with your realization of what expenses you had (even if optional) and what they may be in the next few months.
It just seems that we will not be resourcefully creative/frugal with our spending unless we have to be. Throwing money at a problem is like a quick fix sometimes. I bet if you really HAD to you could have come up with five costumes from a thrift store or even your own closet with a few fun accessories.
Some of the comments I find helpful such as throw away your credit cards, use cash...Just reading your blog helps my awareness and challenges me to make the same evaluations. Your not alone. Also it sounds like dmd is hooked too, "even if he has better things to do with his time."
Aloha, Teresa
I commend you for seeing that you need to set up a budget. I have tried Mint.com myself and have been disappointed with the results so I stopped using it too. One idea is to keep track of every cent you spend in a book (I seem to recall that you had a little black book over the summer). That will show you how much you are spending and where you can cut back. After you estimate your expenses, set aside what you can't touch. Then, when you go out to restaurants or bars, only take the cash that you have put into your budget for that night. The most important thing is to not bring your credit or debit cards! Good luck!
I'm with you Stephanie! I actually just signed up for mint.com, maybe we can do it together! Another tip I learned recently is that once you have it down what you spend your money on, you can start to negotiate what you can cut back on and what you can't. Like, I can give up going to Starbucks if I want to buy a shirt, that sort of thing. Good luck!
Each week you've written about what you were going to do to be fiscally fit. And at the end of each month you've written about all the unforeseen events that caused your plans to go wrong...the need for multiple Halloween costumes, the college bar tabs, the weekends away.... Maybe it's time to change the title of your blog to Fiscally Misfit?
Thanks for mentioning that you are volunteering in Costa Rica. I was there working with Habitat for Humanity. Vacation with a Purpose is a way to reignite the inner drive as to why I am here. It seems that the more I serve is in direct relation to the confidence I can use in investing in the future.