Cash Monies
I think that when it comes to finances, I’ve been pretty lucky. I haven’t acquired much debt over the years, and I can manage all the big bills that I do have now. I really owe it all to my parents who have always taught me the importance of saving and to be a bit more cautious when it comes to spending.
I am still awed by the fact that when we were growing up, their two incomes combined to support a family of four + grandparents + other extended family who happened to move in too would equal about what I make now as a single person supporting herself. They worked overtime and had other part-time employment to keep all bills paid and everyone fed. Amazing, and thankfully we were good kids, and we knew not to ask for a whole lot.
Here are my Schwab MoneyWise Financial Fitness Quiz results:
Not too shabby, right? I lost some points because I am not as organized as I should be [in general], and I haven’t created a will. I think what also gets me are unexpected expenses each month, like an oil change or a clogged sink. I need to bulk up even more for my emergency fund!
Admittedly, I’ve let the purse strings go a little these days because I’m a social kind of person, and some of the socializing I do involves spending… :/ It never gets outrageously out of hand though.
For the most part, I am comfortable enough with my friends to tell them when I’d rather not spend the extra money, and we end up doing other fun, cool, AND free things in the city [and there are many!]. Being able to talk about $$ with the friends you spend the most time with is a blessing. I can say “NO,” knowing that there’s no judgment or embarrassment.
Some other random thoughts on money:
1) Eyes on the prize – I am absolutely obsessed with account balances! I use a spreadsheet to track some of my regular bills and to make sure I have enough cash in the accounts that I use to pay them. I also use tools to aggregate the information from the various financial sites, so I can see my $$ all on one page. It’s the big picture that motivates less spending and more saving!
1.5) Budget - This goes along with #1, so I’ve dubbed it 1.5. I’ve created a budget of sorts, but it remains rather flexible. Some months, I spend more than other months, but all within a balanced amount. I make sure not to spend more than I make.
2) Interest - Here’s how I see it. It’s money you’re giving away, except it isn’t a charitable organization that you can hope to write-off if you itemize, and it certainly doesn’t give you the right kind of warm, tingly feeling inside. So try to pay balances off that have the highest rate, and keep more of this money yourself.
3) When it comes to buying THINGS, I definitely use the Price per Use Ratio. I ask myself if I actually will use something that I’m wanting. I also like Linda’s price to opportunity ratio, except sometimes that gets me to spend. It’s like, if not now, then when?!
My money habits aren’t in tip-top shape, but I am fairly comfortable with where I’m at right now. Just gotta keep chuggin’ along and keep track of where all the $ is/isn’t going!
Disclaimer: This random money-related post is part of the 20SB Blog Carnival: Friends & Money, sponsored by Charles Schwab. Prizes may be awarded to selected posts. The information and opinions expressed in this post do not reflect the views or opinions of Charles Schwab. Details on the event, eligibility, and a complete list of participating bloggers can be found here.
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