Budgeting Woes

Budgets, ooh the dreaded word. Often when people hear the word budget, they automatically panic. Be not afraid my friends, for a budget is only created for your benefit.
I can understand why many people would run at the thought of budgeting, but the sooner you get it over with the happier you will be. When you create a budget, you are setting limitations on your daily/weekly/monthly spending habits and this is the key to living within your means.

The reason why I chose budgets today, is because I was in fact looking over my own. Actually, I was pretty sad and disappointed when I saw the amount I had to spend this week. I will even show you what I have, and I'm not embarrassed of it - after all I am a poor college student.

• $675 for Rent
• $100 for Debt Repayment
• $80 for Cellphone
• $104 for Subway Tokens
• $120 for Groceries
• $20 for Clothing
• $20 for Toiletries

The grand total costs  $1,119 per month, just for me to live some what comfortably. I'll be completely honest in saying that I am far from comfortable, but I suppose that I am doing better than some other folks out there.

Now, to most people $1,200 is living on bare bones. I'll agree with that statement, because that is also how it feels to me. I am used to working 60-80 hours a week, and making a very good paycheck but now that I've decided to go back to school .. I am living on the bare minimum to say the least.

However don't fret, because living on a budget does not mean that you have to live the way I am living now. When you live on a budget, you are living within your means instead of exceeding the limits far beyond what you can afford. Many people these days live from $1,000 to $4,000 outside of their means.
Think about if you were spending $4,000 extra than you had in the bank. You would be going into debt at the rate for $48,000 dollars a year and if you keep on that track for 5 years you will be 1/4 of a million dollars in debt ... to the tune of $240,000 to be exact.

Is it really worth it to live an extravagant lifestyle, when you really cannot afford it? When you begin to live on a budget, you are really just making an excellent choice for your future. Being on a budget does not mean that you have to go without, it just means that you need to think about you needs before your wants. Only purchase items when you can afford to, and if you can do without something for a while .. then its probably best for you to do so and your bank account will thank you for it.

So when you have a spare moment, because everybody does. Sit down and write out your monthly income, the debts you owe, fixed and variable expenses. Why not call the cable company, and ask for a better rate? Decide whether or not you really need that leather couch set from the Brick, or if the one you have now will do.

All in all a budget will help, not hinder .. but its up to you to decide your fate. Would you like to have $200,000 in your savings account, or wrapped up in debt? Just something to think about!



-Lisa

An Introduction

As with most young folks, when I first finished college and had my first "real" job I spent every penny I earned. From my very first splurge on Dior cosmetics, to my first ever diamond ring. The thought that I could purchase anything that I ever wanted, was (and still kind of is) spectacular to me.

Mind you, I have done a great deal of reading and I've figured out how to save. It was not an easy feat or a fun one for that matter, but it is something that we all need to learn how to do. The sooner that you learn how to organize and manage your personal finances, the better; however we aren't all perfect and sometimes people spend their entire lives living pay check to pay check. Fortunately for me, I have realized that is not the lifestyle I want to follow and I have smartened up.

Now that I've moved out of my moms house, I have realized how expensive everyday things really are. As much as I would love to purchase everything I see, I have also realized that I can't do that anymore because now I have to pay rent, cell phone, groceries, toiletries, tuition, transportation costs and other expenses.

 Through this blog, I will be writing about my own personal experiences trying to make it through going back to college, working as much as possible, living on very little and trying to save a few pennies at the same time.

I hope that through my experiences, that others may learn a thing or two. Or I could learn a little more, through comments and advice from others.

Thanks for reading,
Lisa