Tag Archives: budget

Spring Budget Update

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(Photo by me)

Well folks, we’ve hit the month of May, which is the final month of the budget I set out back in January and the month when I get my summer semester student loan and start a new summer budget.

Here’s a re-cap of my budgeting up’s and down’s:

Fall 2008 – I receive my third student loan as a graduate student.  I managed alright the previous two semesters, so I don’t really feel the need to set a budget for myself.  However, at this time I am also becoming more aware of my personal style and how I want to dress.  I also discover the beauty (and pain) of coupons for Ann Taylor Loft, Express and Victoria’s Secret.  I buy clothes and other things, including several new pairs of shoes (since at this time I also discovered the value of Borns and Clarks).  By December, my loan is shot, and I live paycheck to paycheck for several weeks, only spending money to get groceries and pay bills.  Enter my New Year’s Resolution, which was to set a budget and control my shopping.

January 2009 – I consider the value of buying quality items and buying fewer items (still a philosophy I hold to ).  I go through a very methodical process of figuring out how much money I have total for the semester, what expenses are certain and necessary, and how much I have for the non-necessities.  I create nice pretty spreadsheets, because that’s just the way my brain works.  Then I spend $200 buying my beloved Fluevogs, pushing myself way over budget for the month, and back-slide.  I vow to be more responsible.

February 2009 – Partially because it is the shortest month of the year, and partially because of birthday cash, I didn’t go over budget this month.  I got several new items, many of them thrifted, and enjoyed having new things in my wardrobe.

March 2009 – I went over budget again, mostly because: a) I had to pay taxes b) I had to buy new glasses.  I spent some time reflecting, gave myself some shopping challenges, and spent some more time reflecting on lessons learned.

April 2009 – I create some new shopping guidelines for myself to help me control my spending.  However, I’ve only really shopped once since then, partially from being busy, but mainly because I have used up the loan (again).  I’ve also been learning to love what I already have, and have been embracing the challenge of working with the wardrobe I already have, as well as creating pieces from scratch for it.

So that’s leading up to now.  I’m spending some time reflecting and getting ready to prepare my budget for the summer, which will be somewhat different.  The summer semester is shorter, but it’s also my last, so I will need to be preparing for interviews, which includes some grooming (hello manicures!) and some work wardrobe shopping.  My shopping guidelines will remain in place, but I’m modifying them to allow for buying shoes at the mall and having one (or two) outlet mall trips.  Stay tuned!

Some new guidelines for April

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Well, the month of March didn’t work out so well for my budget.  I went over again, just like in January.  And now I’m looking at how much of my loan I have left to get me through til the next one near the end of May, and folks, things are going to be tight.  Even though I really don’t want to create more restrictions for myself, I think that I’m going to need them if I don’t want to end up living paycheck to paycheck like I did in December when I used up my loan too quickly.  I’m just setting guidelines, not rules, because I think I do best with a bit of flexibility.  Usually if I try to set strict rules, I end up breaking them and then rebelling and ignoring them.

So here’s some new guidelines for my shopping and spending these next two months:

  • Don’t buy anything that is black, brown or navy:  I have way to many dark colors in my wardrobe, so I need to brighten things up.
  • Only buy Spring/Summer items.  By the time fall and winter get here, I will hopefully have a full-time job, so I can buy that stuff then.
  • Work on filling the gaps in my wardrobe:  I’m writing up a list of items that my wardrobe is currently lacking, and working on filling up those holes first.
  • Only shop at consignment, thrift, outlet stores, or online:  This is definitely only a temporary guideline, and is flexible.  A large part of my over-spending in the previous months has come from going to the mall and using coupons or going to sales (Express, Ann Taylor Loft, etc).  While I have been getting good deals, I usually end up spending more than I should, and sometimes I end up buying stuff I don’t really love just to use a coupon.  I still love these stores, but I think I need to take a break from them for a few months.  Rediscovering how to thrift could be very beneficial for me, and I really need to take more advantage of the great thrift and vintage shops in my area.
  • For now, quantity over quality:  Yes, I am a quality girl.  But right now, the way my wardrobe is, I really just need to get more items in general.  But I still won’t buy polyester.

These are just guidelines, not strict rules, so if I veer once or twice that’s okay.  And one rule I have that trumps all:  if I absolutely fall in love with something the second I try it on, I will buy it.  There’s only so many items out there that are absolutely perfect, and you should always snatch them up whenever that occurs.

Budgeting Lessons Learned in March

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  • Always take a calculator with you when you shop.  It’s amazing how a quick trip to Target can turn into a $90 expenditure.  Adding up prices on your calculator as you add them to your cart helps you reconsider whether you really need the item.
  • If you go over budget, keep writing down what you spend.  The worst thing you can do is decide that sense you’ve already broken your budget, you’re entitled to a spending free-for-all (which is what happened to me in January).
  • Carry a notebook to write down cash purchases or hold onto receipts and tally them at the end of the day.  Small cash purchases can add up very quickly and it’s the easiest area to cheat in.
  • Buy quality items that will get lots of use and fill your needs now.  Yes, I could get a great deal on sweaters and knee-high boots right now, but I wouldn’t get to wear them until October.  At this point, it’s better for me to buy for the season I’m currently in.  When I have a better set of staples and a fuller wardrobe, then it will be time to buy off season.
  • Never punish yourself for buying something that you love.  And don’t beat yourself up if you fail.  Just forgive yourself and start from scratch next month.
  • I’ve found that with this budget, I have a bad tendency to overspend the first few weeks of the month, control myself and barely spend anything the last few weeks, then go crazy again when the new month starts.  I have to work on controlling that.
  • Just because something is on sale or you have a coupon doesn’t mean you have to buy it.  Point in case: LOFT’s Out with the old, save on the new sale.  Yes, I love the idea of it and I think it was a wonderful promotion.  But did I really need to get a new pair of black pants?  Yes, they are lovely, flattering and made of cotton/spandex so they don’t violate my polyester rule.  And yes, I got fifteen dollars off of them.  But, with my limited budget, did I really need them now?  I’m not so sure.
  • Beware of going into a store “just to look around”.
  • Learn to play with the toys you have.  Take advantage of what’s already in your closet.  Challenge yourself to work with what you’ve got.  If you’re crafty, spend your free time sewing or knitting new outfits (with fabric and yarn you already paid for) instead of going out and spending more money you don’t have.
  • Record everything:  your budget will suffer if you cheat.  I didn’t record that $70 I had to pay in taxes.  I didn’t record spending money on new glasses.  Yes, these weren’t typical purchases, but they are still taking money out of the total I have available.  Not recording them is only fooling me into thinking I have more than I do

Budget Update

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I realize that it’s been awhile since I’ve updated you on my budget.  Do forgive me.  I haven’t forgotten, life has just been super busy lately.  I have been diligently filling out my budget spreadsheets, trying not to cheat too much (although I may have forgotten to write down a cash purchase here or there).

The month of January I went over budget due to the purchase of my beloved Fluevogs.  February I forgave myself and stayed on target, although I did spend a bit more on groceries than I had budgeted.  This I find acceptable, because I want to make sure that I’m eating well and not resorting to less healthy, cheaper food.

We’re only mid-way through March yet, but I’m afraid I may have trouble this month.  I’ve had a few shopping trips lately, and while a good chunk of that was birthday money, I’m already over half way through my non-necessity budget money.  So we’ll have to see.

Still, I am very happy with the way I have begun to think about shopping.  I’m much pickier when I’m looking for things, and I try to focus on filling noticeable gaps in my wardrobe, instead of just buying whatever.  I’ve also stopped buying anything with polyester,  which helps me discriminate more at thrift shops.  Overall, I’ve felt much happier with my purchases over the past few months, even though I haven’t been able to shop as much.  I’m getting fabrics that I love, cuts that look good on me and accessories that make outfits shine.  So things are pretty good.

Staying on target (or not)

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(photo by me)

Well, I’m just about one month into my resolution budget, and I’m already learning some things.  One is that, to stay on target, it’s good to plan ahead.  I found myself buying Starbucks coffee too many times, simply because I hadn’t either a) taken the time to fix coffee at home or b) bought honey so I could drink tea at my office.  Planning what food I bring to work is important as well, because eating out for lunch adds up quickly.  I also decided that I need to add a bit more to the budgeted amount for groceries.  This amount will be taken away from the non-essentials area.  While I do want to save money,  I also want to eat well and take care of my health.

Also, I did go over my non-essentials amount for this month.  However, I don’t regret it, because the reason I went over is that I finally purchased my beloved Fluevog Malibrans when they went on sale for $200!  I’ve been thinking about these shoes constantly since I tried them on in New York back in October.  I’ve been debating if I could justify the cost when money is already tight.  But these are my magic shoes, my ruby slippers.  They felt fantastic on.   I’ve been planning  outfits that they would make awesome.  And they’re comfortable.  Also, I feel that it’s really important to buy quality, especially when it comes to shoes.  So, I don’t regret the fact that they made me go over budget this month.

What I do regret is that, after buying the Malibrans and knowing I had already reached my budget point for the month, I continued to spend.  Not just a bit, but a hundred dollars more!  And I kept finding myself justifying small purchases, intentionally neglecting to log them on my spreadsheet.  This has revealed to me that I still have some spending habits I need to work on.

To make up for going over this month, I’m taking a hundred dollars out of next month’s non-necessity budget.  I’m really going to have to control how much I buy to do this, but I think that it will be good for me.  February is also my birthday month (on the 25th) so I can satisfy some of my “new stuff” desires with birthday presents.

Budgeting is not easy, but I know that it will save me from so much stress in the long run :)

Setting up a budget spreadsheet

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My dad works for IBM and he uses spreadsheets for everything.  I guess I inherited that from him, because I love making spreadsheets to organize my life.  I recently blogged about how I planned out the categories of my budget  for my New Year’s Resolution of learning to control my spending and save money.   Now, I’ve put all that together into a spreadsheet, so that every week, I can enter what I’ve spent and where.

Here’s a screen shot of the main page of my budget:

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By entering what I spend each week, I can make sure that I’m not going over the amount I have budgeted.  I’m keeping the non-essentials part of the budget flexible by budgeting for the total spend per month, as opposed to the amount spent on each category.  

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This second part of my budget is where I keep track of exactly what I am buying, when and where.  That way, I can track my spending and figure out if there’s some areas where I need to be more reasonable and cut back.

I may just be an organization freak when it comes to spreadsheets, but using this method really helps me to be disciplined.

Sorry if this post was a bit on the dry side.  I promise more style related stuff will be coming soon!

Setting up a budget: Step 1

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(Photo by me)

In preparing for my New Year’s resolution of watching how I spend, I’ve put together a budget.  I thought I would share my process with you, so that I can get feedback and so that maybe you can benefit from seeing how I’m working on this.

The first step is to figure out how much money is available and what time period you are budgeting for.  Since I’m in grad school, I’m planning a budget for the Spring semester, which is January through May, five months.  (Technically the semester ends in April, but I won’t get my next loan til mid-May, so I figure budgeting for that month too is safer).  During this semester, I will have one $4000 student loan.  I will also have a bi-weekly paycheck of $400, which adds about another $4000 for the semester.  Thus, for this five month period, I have $8000 to work with.

Next, you need to figure out you monthly re-curring expenses.  Most of these will be necessities, such as rent, groceries, prescriptions and transportation.  Others aren’t necessities, but still happen once a month.  For me, these include gym membership, Netflix subscription and cell phone bill.

Here’s how this part of my budget breaks down:

  • Rent: $450
  • Utilities: $45
  • Groceries: $400
  • Gas: $25
  • Netflix: $18
  • World Vision: $35
  • YMCA: $14
  • Cell Phone: $15
  • Busch Gardens: $6 (Credit)
  • Monthly Prescription: $20
  • Toiletries: $20

 

Total per month: $1048


Total for semester : $5240


It’s also important to consider non-recurring expenses at this point, such as car maintenance, textbooks, and tuition.

After this (and paying off my credit card balance) I end up with about $2260 to spend on non-necessities.   That allows up to $452 per month for non-necessities, but my goal will be to only spend $400 per month.  I’m allowing some flexibility, but I’d prefer to not be broke at the end of next semester.

For this part of my budget, I’m mostly going to track what I spend in each category and make sure I don’t go over my amount each month.  My categories for this section include:

 

  • Clothes
  • Accessories
  • Fabric/Yarn
  • Gifts
  • Household
  • Going out to eat
  • Books/Magazines
  • Personal Grooming (Haircuts, manicure)
  • Cosmetics
  • Entertainment

 

 

As I track my expenses every month, I will probably make some adjustments, but this gives me a good framework to start with, and also helps me to be aware of what I have available.  Now, I’m off to make a spreadsheet.  I’ll share more details of that soon.

 

 

 

 

Buy Better, Buy Less

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Fluevog currently has a sale going on, and I couldn’t agree more with the philosophy: Buy Better, Buy Less.  The idea is that it’s better to spend more money of items of better quality and buy less, than to buy a whole bunch of cheap stuff and keep having to buy more when it falls apart.

“But wait!”, you say.  “Aren’t you on a budget?”  Well, yes.  But it’s better for me to buy only a few quality items that will last for years than to buy a bunch of cheap crap that I won’t like for long (and that won’t last).

To further explain this, think about the price per wear of what you’re buying.

I bought some cute strappy sandals once for $35.  They seemed to not hurt my feet in the store, but then after wearing them to work for a day, my feet felt like they were dying.  I wore them maybe two times after that.  They are also manufactured cheaply, and the price sticker damaged the heel when I took it off.

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Intial Price: $35

Number of Wears: 3 ish

Price per wear: ~ $11

Now look at my Clarks Marillas.  These shoes cost $100.  And I adore them.  They are seriously comfortable, and even after wearing them all day, my feet don’t hurt.  I probably wear this at least two or three times a week.  Since they are real leather, it’s easy to shine them and take care of them.  I have a feeling that they will last for a long time.

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Initial Price: $100

Number of Wears: 50 and counting

Price per wear: $2

So, which shoes ended up being a better deal?  This is why I feel that it’s better to buy quality than cheap.  This doesn’t mean that cheap stuff never works.  I shop at Target and thrift stores all the time, and my Mary Jane Crocs only cost $30.  But I feel that, in general, it’s better to spend your money on items that will last.

New Year's Resolution

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(photo by me)

Since I’m in graduate school, I’ve mainly been living off of my student loans.  That means that I get most of my money in a big chunk in the beginning of the semester.  This has revealed some of my poor money habits to me.  It’s very easy when you have $4000 of your student loan left to justify lots of shopping (I need nice clothes for when I enter the work world, right?).  But then when it gets to the end of the semester, I suddenly realize that I’ve used up all my loan, and still have to wait til mid-January before I get my next one.  All this has helped me to see that I am somewhat addicted to shopping, and that I need to come up with a plan for next semester so that I will actually be in control of my money while still purchasing a few choice items that I may actually need.

Here’s my resolution plan:

Step 1: Use a list of basic essentials to keep my shopping focused.  I’m using Sally’s list as a starting point, then customizing it to my own needs.  This way, I’m buying things that will be more versatile than say, a crazy printed dress that goes with nothing else in my wardrobe.

Step 2: Create a budget.  This is also re-learning basic money management for me.  The plan right now is to immediately budget the necessities that occur regularly, and then determine what I have left per month for non-necessities and stick to that limit.  So I will have a set amount each month that I can spend on non-essentials.  If I find a $100 pair of shoes one month, then I have to cut back in other areas of spending, like cosmetics and entertainment.  If I get my hair cut and colored, then I might have to buy less clothing.  Etc, etc.  I’m still continuing  my Fluevog plan as well to encourage sewing and crafting to earn more towards clothes.  However, I have to make sure that what I spend stays within my budget.

I realize that this might not be enough structure for me, so at the end of each month I will re-evaluate my budget and figure out what I can do to improve it.

Fluevog Update:  I have “earned” enough money for the Fluevogs, but I’m waiting a little longer (probably til my birthday in February, which is when the next Fluevog sale should happen) before I actually purchase them.  I want to be a bit more responsible with my money before shelling out $250 on a pair of shoes.

Step 3: Buy items because you really love them, not because you have a coupon/ it’s on sale.  I have a bad habit of buying things that I’m not really crazy about simply because I have a coupon for the store.  If it’s not something that I totally love, why should I be spending my money on it?

Hopefully, with these strategies, I can be a bit more responsible with my money, and a bit more prepared for entering the “real world” of full time work come next August.

Money slips so easily through your fingers

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(photo by me)

   I had a very unpleasant realization about money yesterday: I have lost my ability to control how I spend.  I started off this semester with a $4000 student loan and a bi-weekly paycheck from my graduate assistantship.  As of today, I have only about $100 in my bank account.  Total.  And about $10 left on my credit card.  How did I let this happen?  I have discovered a weakness I have:  when there is more money in my account, I spend more than I normally would.  Some things that I buy I may really need, like a nice pair of shoes for work.  And yet, I really didn’t need so many clothes and whatever that I used up my entire loan.  

   I had tried to create a spending and crafting plan to save money for a pair of Fluevogs last month.  According to that plan, I have hypothetically saved $300 towards my Fluevogs.  And yet, when they went on sale last week for $200, I didn’t have that much money in my account.  So, while the plan sounded like a good idea, it needs some tweaking.  Because even though the idea was to knit, sew and alter stuff so that I wouldn’t shop as much, I still went shopping every time I had a paycheck.  Even this week, when I realized how tight my money was, I couldn’t resist utilizing some coupons for Express and some extra money I had received for some photography work.  Couple that with the fact that I wasn’t paying attention to what payments had gone through on my account, and I overdrafted.  My bank account has overdraft protection, so I wasn’t penalized, but still.

   My realization is that I have to learn to manage my money again.  I will be posting more about my plan around New Year’s, since my resolution is to learn how to control my spending.  I’m going to set up a budget so that I can make it through the semester and I’m going to tweak my spending/crafting plan so that I can actually save money for essential wardrobe items.  I’m going to learn to think through my purchases more carefully instead of rushing to the mall every time I get a ten dollar off coupon.  I’ve developed an addiction to buying clothes, and I have to learn to control that before I go completely broke.

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