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This is a post by BargainBabe.com writer Yazmin Cruz.
Coming up with resolutions for the new year was difficult. I easily added the No. 1 resolution to lose weight onto my list, but when it came time to think of my financial future, I was paralyzed. While I’ve always saved my pennies, this year is different. In the spring I’ll be graduating into a less than idea economy and assuming the adult reality of earning, managing, and spending money wisely. I would be lying if I said I was not anxious about my future.
My three financial goals, which may be similar to yours, are simple so I can stick to them.
3. Save more money – I’ve been putting aside 20 percent of all my earnings and will start putting away 25 percent this year. To meet my goal, I’ve set up my bank account to deduct 25 percent automatically from my paychecks and transfer the money to my savings account. Since I’ll be saving more, I’ll be cutting down on my entertainment budget. There will be less movie nights and dinners out.
2. Stop using plastic – A while back I wrote about an addiction that cost me a lot of money. I was using my credit card to pay for coffee when I didn’t have cash on me. Since then, I’ve stopped using it to pay for food or coffee, but there are still times when I pull the darn thing out. My credit card debt is low because my credit card company has given me a major incentive to pay off my bill in full every month, a high APR. I’ve actually thought of canceling the card and opening up another with a lower APR, but this would be a big mistake because I’m trying to build my credit and my student credit card has a long history. Instead, I’m giving the credit card company a call to ask them to lower my APR. I will also put it away this year because I’ll be tempted to charge movie tickets. Bargain Babe went without a credit card for a month, which drastically changed her mind about using cash.
1. Pay off debt – I want to start living life debt-free and paying off my hefty student loan on time is my main priority. I did not receive financial aid so all expenses where out of pocket. Aside from the 25 percent I’ll be saving, my plan is to take 10 percent of my income each month to pay down my loan. The 2 percent interest rate is fixed, but if I default it will balloon up. I can afford to save money instead of putting it towards my loan as long as I pay the minimum on time. I’ve set up my checking account to automatically pay my bill each month, leaving no chance for me to waste the money on frivolous things or default.
January 5th, 2011 at 1:18 pm
Yazmin, your goals are positive and doable, and I wish you all the best in achieving them. Just try to prioritize your social life so that you don’t feel totally deprived. It’s like dieting… The more “no-no’s” you have, the more likely you are to binge on occasion. My advice… Set aside certain times/dates to see a movie, as well as to eat out for a meal or two. Choose a restaurant with a diverse menu and reasonable prices (there are lots of them out there), and try to go to a matinee movie, when prices are often lower. Check local listings for theaters that offer the lowest ticket prices.
January 5th, 2011 at 6:15 pm
We spend about $40 a month on entertainment, and that is just to go play bingo (and sometimes we come home with alot more than the $40 we took with us)
January 5th, 2011 at 6:16 pm
And Yazmin, I love your piggy bank up there!
January 6th, 2011 at 6:11 pm
I’m trying to do the same but I use my debit card, which counts as plastic. I definitely have to keep track of how much I’m spending though.
January 8th, 2011 at 9:06 pm
@Susie A. I’ve never been to to a bingo game. I might just have to try it some time.
January 8th, 2011 at 9:12 pm
@EllieD I am going to have to be extra creative to entertain myself this year. You’re right, when I deprive myself I fail miserably. Instead of going out to a movie I’m going to use my library card to check out movies. Eating out is one of my fave things to do, but it can quickly add up. I will definitely go out during L.A. Restaurant week.
January 8th, 2011 at 9:22 pm
@20 and Engaged I consider my debit card cash. I actually prefer using it instead of my credit card. With my debit I can keep track of what I’m buying and it’s easier than dealing with receipts at the end of the month. I also have set notifications for my debit card like when I’m running low or I’ve spent more than what I’ve budgeted so I never overspend.
January 8th, 2011 at 9:47 pm
Yazmin, Bingo is fun and I think you would really like it!!! And the people are so nice that you make some really good friends there.