If Money Could Talk

Let's get real. If my money could talk, it would probably be saying, "Stop spending me on that unnecessary pair of heels and just deposit me into your savings!" Oh, those dreaded "s" words. Spending and saving. One thing I do too much of, the other not enough. 

{Dumb Kid Designs | Etsy | $6.00 | Pink & Tan Chevron Wallet}

Sparkles and Prays was created to be a faith and style blog. In good faith I'll share my flaws along with my successes, and in true style I hope to only showcase the most affordable fashion (with the occasional splurge). I believe life is worth living, if buying that gold pair of sparkly heels will bring you joy every time you wear them, go for it--so long as purchasing them isn't at the cost of other priorities in your life.

I struggle with finding that balance. Between paying off my school debt and a shopping spree, I'm guilty of  choosing the latter. As a young adult, new to paying bills, loans, and the career world, I find it hard to keep track of my money (which results in frivolous overspending). I've attempted several ways, and none of them seem to fit. This year I've decided to pull ideas from various financial plans to create a customized plan for my bank account and personal spending habits. I hope you can take away at least one tip that works for you!

1. Record EVERY dollar spent. I recently downloaded the app called, "Budget" (creative name, huh?). It's an electronic version of the envelope system where you "add" the amount of money you want to spend in each category (groceries, shopping, gifts, etc.) and throughout the month you input your transactions and the app takes care of deducting your purchases from your initial balance. Sadly, using Budget has proven to me that I overspend in about every category. Read on to see the tips I'm going to apply to my budget next month.

2. Set aside savings along with other monthly expenses. I realized that I was only adding money into my savings after I calculated my shopping budget, like shopping was a category I just have to put aside money for ... not. Here are the categories that should be a priority for me:

• Savings, Groceries, Gas, Gifts, Eating Out, Living Expenses, Student Loans, Tithing, and Personal Care.

Gifts and eating out may seem frivolous, but these are categories that allow me to appreciate and spend time with loved ones, which is well worth the money. Groceries, savings, gas, and personal care are budgets I'm still adjusting to find the right amount I need on a monthly basis. 

3. Balance the use of cash, credit, and debit for purchases.

• Cash: I typically only have cash if I babysit during the week. Thus, I've gotten into the bad habit of swiping my credit or debit card with every transaction, which ultimately leads to overspending. This February I'm making an effort to withdrawal just $60 every week and avoid using my debit or credit cards for daily purchases (minus groceries, read on for my plan). This will mean gas, eating out, and personal care items.
• Credit: I'm a newbie at building credit, but I do know it's important to use your card wisely--in the hopes that you're able to  pay off the balance every month. This February I'll only use my credit card for groceries and my rent payment. The larger the purchase, the more reward points I receive at the end of the month. And absolutely no clothes shopping purchases will be charged to my credit card. I also hope to pay off my credit card the same day I use it, meaning that I will not have to worry about spending a future paycheck to pay off last month's credit spending. (I'm going to catch up to this goal by using February's savings portion to completely pay off my balance, a month before it is due. Next month I will resume regular savings.)
• Here's one of my favorite articles about boosting your credit score.
• Debit: So, what's left for my debit card to do? I'll use my debit card for the transactions that don't happen as often, like buying a gift for someone. I'll also use it to pay my monthly student loan payment and will refer to these straightforward methods to reduce my loan debt in the most efficient way. 

This balance between cards and cash is my own personal preference, but I hope it'll help you evaluate your use of your own paper and plastic. 

4. Create a Budget Binder. I love what technology offers in the field of personal organization, but sometimes, good ol' paper and pen are the most satisfying means of budget control. I'll continue to use my Budget app for everyday expenses, but will record the app's summary into a budget binder at the end of every month. Knowing me, writing it down will help create a visual of what I can afford to cutback on. 

• Here is a free printable budget worksheet that I found from the fabulous blog, Creative Kristi. It's colorful and fun, which will motivate me to actually record my monthly spending summary!
• I'm going to add clear sheet protectors to my binder to hold monthly bills, receipts, and my check book. 
• Decorate! Create a collage on the front of your binder that will encourage saving and inspire you to budget well.

Here are two of my favorite websites, tailored for women who are looking to be financially wise. 

• The Everygirl finance column; see my favorite article here.
• Financially Wise Women

I know this plan won't work for everyone. More simply, I needed a place  to document my personal goals and to be held accountable. Thanks for reading, Happy Saving!

xo,

Elissa