27 and Frugal

I have previously written about tracking your savings within a budget just as you track your expenses. However, this is assuming that you already have a savings account, savings goal and long-term financial plan in mind. So, this time, let me start from the beginning.

Why Save?

1. Emergency Fund: This savings is essential for financial stability. Unexpected problems will always come up in life that cost money. Car issues, home problems, medical emergencies, job loss, computer malfunctions and family emergencies are all things we must plan for, even if we hope they never happen. The experts suggest saving 6-8 months living expenses.

   To get started, let’s set a reasonable goal of 3 months. Using your budget, calculate your monthly fixed expenses (only) and multiply by 3. At a minimum, this is how much you need to survive for three months.

2. Travel Fund: Everyone wants to go on a guilt-free vacation! Start saving early so you have enough “splurge” money to not dread coming home to credit card bills.
3. Car Fund: If you are thinking about purchasing a car, start putting some money in savings now for it. Set your goal to be the down payment.

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My new roomate saw me in the kitchen the other day and said she was impressed with my cooking skills. When I asked if she cooked, she replied, “by necessity.”

“By necessity” is exactly how most of us learn to handle our finances. Very few people have been taken step-by-step through balancing a budget, reviewing a check book, tracking bills and managing a savings. Instead, we are expected to figure this out for ourselves. It is no wonder so many people fall into debt.

Invisible Money

There are a plethora of cooking shows on tv. Every cuisine, style, and cook time is shown with complete details and visual instructions of how to prepare each dish. Then you have personal finance, which is rarely mentioned on television.

When money is shown in the media, it is often because someone won or lost a large amount of it. Sitcom couples are rarely shown balancing their budget or saying they cannot afford something (without it being the joke of the episode). In fact, the only time money is usually discussed on television is during a credit card commercial.

Society in general tends to hush conversation about money. Salaries are never to be mentioned among friends, budgets are a boring topic, and no one wants to be the one who “can’t afford it” in the group.

As a child, money is invisible. It is not until your first job that money becomes relative and even then, it is merely disposable income as most 16 year olds live at home without many bills.

Without being taught how to handle money or given real life examples of proper budgeting, along with being surrounded by credit card companies, it is no surprise that we make financial mistakes! Continue reading »

Alton Brown may not be a frugal expert but his kitchen-item buying advice is dead-on: “Do not purchase uni-taskers.”

However, there are items that we eventually need to purchase. Here are some of my personal recommendations, items which I could not cook or bake without!

Magnetic Double-Ended Measuring Spoons – These are far better than any metal spoons on a ring. Being able to use one spoon for both dry and liquid ingredients is extremely convenient. You will never lose the spoons either due to their brilliant design.

Cheese Graters/Containers – I love that these containers make it so easy to grate cheese without making a mess. When you have extra, just put the lid on top and store it in the fridge. Continue reading »

Since incomes are relative, I have decided to go over my budget recaps in percentages instead of dollar amounts.

Fixed Expenses

My electric bill decreased and car insurance increased just enough to balance each other out.

Total May Fixed Expenses: Budgeted – 50%; Actual – 51% Continue reading »

I did much better on my May budget than I was expecting!

Fixed Expenses

I went over on my text messages, again! It’s a shame no one uses email anymore because it really would help!

Total May Fixed Expenses: $1,532.70 Continue reading »

I did much better on my March budget than most people did with their tournament brackets! It was an odd month because I only received two paychecks due to starting the new job. I am looking forward to April being a normal month so I can adjust to my new commuting expenses and weekly paycheck.

Fixed Expenses

I was under or even with all of my monthly bills (yes, even my cell phone). I was very happy to see my gas/electric bill come to only $63.95/each this month. I had $90 budgeted because … Continue reading »

How’d I do this month?
Bars: $0/$20
Bills & Utilities: $114/$200
Car Payment: $0/$300
Cell: $77/$80
Entertainment: $49/$50
Gas: $156.36/$190
Gifts: $39/$300
Groceries: $15/$200
Personal Care: $0/$20
Restaurants: $18/$70
Shopping: $11/$100
Student Loan: $0/$162
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Making a budget is tough! For starters, you can’t just go out and make your budget. Why? Well, how are you going to know what to budget if you don’t know what you already spend?

Be Realistic

See, this is usually what happens with budgets. You make your budget. You estimate $100 for groceries and $50 for eating out. By the second week, you’ve already exceeded both of these budgets. Not wanting to starve yourself, you declare budgeting to be “stupid” and “a waste of time.”

A budget is only successful if it is realistic. So, let’s start with my Beginner’s Budget template that I’ve already created just for you. (Yes, you!). Continue reading »