resolution #4: how to manage your money

(a.k.a. how to stop burning through your hard earned cashola like it's a forest in northern Ontario and you're a blazing forest fire)

quick update: I've worked out 3 times since my last post on Jan 4th, 3 times in 5 days? Im proud of myself. And except for a lil sesh at Dark Horse, I've only eaten home cooked meals....on the road to success.

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OK OK OK OK, we are all grown ups. But sometimes money gets to be a lot to handle. And being in uni does naht make it any easier. Personally, I've made between 4 and 5 grand in the past year and I could probably only account for where half of that money went. And I say went because it is basically all gone, I only have $700 in my savings and my chequeing account is complètement vide.

Naturally, learning to properly manage my money is one of my most important resolutions. And it's going to be ridiculously difficult. Not only do I go to school beside the Eaton Centre, temptation maximum, I also have an innate need to go see movies every week, try new (expensive) restos in the city, buy more concert tickets and clothes than I can justify and spend money on stupid shit. So, as you can see, the entire world is against me.

Melodrama aside, this will be no easy feat. I'm going to start with 5 strict rules that must be followed at all costs to conserve my funds.

1. Put 40% of your earnings or bi-weekly paycheques in a savings account.

You can choose what ever percentage you want, but for my own calculations I stand to have $960+ in my savings account by the end of the year. It is important that you stay strictly constant with the percentage you choose and deposit that much every month or two weeks or however often you get paid. This money should NOT be touched, it is being saved for something serious, like the down payment for your first exposed brick, loft style studio apartment in SoHo (*sigh*, let me dream).

2. Shopping is a privilege not a right.

Just because that dress looks SO cute on you doesn't mean you get to buy it. Just because your prof reamed you out in front of the class does not mean you get a session of retail therapy. Just because your friends are shopping does not mean you get to, too. It just doesn't. You need to earn the right to shop, not just gallivant about at your own free-will. Have some self-control woman! (this is a note to self) Treat yourself to a shopping spree if you raise your GPA by several points, buy that M.A.C lipstick if you got that internship you applied for, purchase that iPod classic if it's a special occasion. As long as you stop shopping for the sake of shopping, you will noticed a steady decline in the amount of money you're spending.

3. Prioritize your spending, what really needs to be purchased?

School textbooks are more important than buying a record player, just as paying for a metro pass is more immediate and necessary than a new waterproof-shockproof-desertproof-childproof-lifeproof phone case. What ever your "fixed" expenses are do not sacrifice them for flexible expenses. Buy what's necessary than see how much money is left over. Honestly, just doing this will go a looooong way.

evidence... for so many terrors

4.  DO NOT GET A CREDIT CARD. (until you're 57) 

Oh god, credit cards terrify me.... My debit card gets emptied so at least when there's no money in it I can't buy things. With a CC I just know that I'll just keep going, get my VISA bill at the end of each month and have a mental breakdown and develop a bad credit rating. So no no no no no cc, no matter how many times my bank calls me trying to get me on one. Don't give in... Unless you're really responsible, as I am NOT.

5. Keep a DETAILED record of spending.

This is colossally important. Separate your record/budget any logical way you deem fit, I'm going to organise mine by day and write my purchases directly into a little notebook I will keep with me always.
ex.

extra tidbits:

SAVE RESPONSIBLY

Don't just put money into a savings account and then go two days later and take money out of that account because you really want something... like a jacket at Zara or tickets for Lady Gaga. (I am guilty of both.....oops.)

STOP SPENDING MONEY ON STUPID SHIT!!! (this is another note to self)

keep tabs on how much you're spending and reign yourself in if you're getting crazy......

then maybe one day we can carry around louis v. satchels full of hunnids.... but until then, manage your money AND look for the next post by my gal rinzo (Rina's blog) coming soon! 

xx kels