Let’s Talk Money Management

Anyone that is close to me knows that I am a bit of a saver… penny-pincher… tightwad, whatever you wish to call it.

Anyways… people have asked me to share a blog explaining my money management skills or as some may see it, how the f*** do you do that?

*Disclaimer: I stay away from money numbers for obvious reasons and this blog is more so an overview of my money management style.

Here’s a little bit of background about me before I start. I started working with I was 16 years old, moved into a one-bedroom apartment in Midtown, Atlanta when I was 19, moved to a 3-bedroom apartment in Kennesaw when I was 22, paid off my student loans when I was 23, and now here I am (hopefully) saving for my next endeavor.

My rent when I was living in Atlanta was $1097 + electric, water, gas, not to mention the expenses of tuition, books, groceries, etc. Here’s how I afforded my lifestyle: I saved every paycheck I got while I was working in high school. My thought process was, “I’ll get myself one nice thing every paycheck and the rest will go into saving” because I don’t NEED anything right now. It quickly turned into just using my money for gas and putting the rest away for saving. I mean hell I was living at home, I never partied in high school, and I was working every weekend so I never had time to spend money. This meant when I moved out that I had been sitting on my high school savings.

Here’s my financial mindset plain and simple: If I don’t need it, I don’t buy it. Except for the rare occasions that I decide to spoil myself.

Things don’t make you happy and people spend so much money on minuscule things that keep them satisfied/happy for a short period of time and then they’re on to the next thing. I enjoy experiences, which is why I can afford to travel more than most people.

Here’s my advice for anyone that has trouble saving:

Pick a number in your head, a financial number that makes you feel comfortable and keep your checking at that number. Anything that goes over, move it to a separate account. Put it in your savings, your retirement, under your mattress. Put it away so you don’t feel the desire to spend it. If your checking goes significantly lower than that number (you decide how much lower you feel comfortable with) then you should probably stop spending so much.

Also, credit cards can kill you. Do not ever spend money you don’t have. My credit card is used to help build my credit and that is it. I never put more money on my credit card than I have right in that moment. Look at your checking and look at your credit card, if your credit card is way higher than your checking you are literally spending money you don’t have. Yes you can get your next paycheck and pay it off, but then you’re back to nothing. You will constantly be working to pay off your credit and just adding another bill to your finances. Now, having debt in credit cards for pointless things is different from having debt on a car or a house, it’s mindless spending.

For all of you that are feeling a little stressed after reading this, there’s a fine line between smart saving and solely focusing on the future. You don’t want to lose yourself in preparing for a day you may not get to experience, but you also want to live your best life making sure that you are always taken care of. Have fun, but be smart, check your credit, run credit checks, talk to bankers, invest your money, do whatever works best for you. I don’t have all the answers and I’m always learning what works best for me, but I hope this has helped motivate you to save that extra dollar!

 

-Till next time-