I know that everyone has to go through the stage of learning about money. For some, it is when you are young, for others they don't learn that till much later in life unfortunately. Now I would say I learned about money very early in my life, and I have always had pride in myself that I had a good handle on it. Yet you don't learn to appreciate it fully until you are older and on your own I'd say.
But everyone makes mistakes right? I have definitely made my fair share of financial mistakes on my journey to becoming financially stable. In the last few year,s I have done very well for myself and am on the road to become a millionaire. That being said, I've made some mistakes along the way that got to me where I am. Most of these were made in my late teens, I should have known better...
1) Buying expensive presents for people when I couldn't afford it. Your friends are still going to love you regardless, and if they don't, they aren't true friends. Try and make something yourself or get something in the price range you can afford. It's the effort and thought that people care about.
2) Only making the minimum payment on my credit card. This mistake didn't last very long, but when you just get your credit card at 18, you don't really understand the full concept of borrowing money from the bank. I mean, it's your money on there right? Nope. Now, I don't rarely use my credit card at all, and when I do, I pay it off in full before the payment is due. That's also a great way to keep your credit rating up.
3) Living paycheck to paycheck and relying on credit. I spent money that I didn't have, yet the stress of waiting for the next paycheck is the worst feeling in the world.
4) Saving very little money. This is a big one that I have definitely corrected since then, especially starting this millionaire journey. My savings have doubled since then in only a few months.
5) I never paid attention to my credit rating. Who would have though, your credit rating is pretty important... haha the other day was actually the first time I checked to see what my credit rating was, and to be honest, it was really great for someone my age! I was so impressed with myself, the last few years of being very financially aware and stable have helped that immensely.
Moral of the story, we all learn about finances either early or late, but at the same time, better late than never. I'm on the road to success, and I couldn't be happier.
What are the mistakes you've made if any?
Showing posts with label savings. Show all posts
Showing posts with label savings. Show all posts
Spending cash instead of plastic
March 11, 2013
Today I had someone bring up to me the idea of using cash over plastic. I've seen tons of articles on both of these opposite ideas. Different ways work for different people I'm sure, but lately I've been going with the cash option.
Starting in march, I want to take out $150 cash every payday (every 2 weeks) and have that be my entertainment and more fund. Now, this doesn't include major bills such as rent, credit cards, phone etc. This is strictly entertainment, groceries, coffees, and meals out.
I have done this before and it's worked really well in the past. Because for me personally, if I can see the physical cash dwindling down in my wallet, I'm much less inclined to spend it. With plastic, it's easy to swipe and just forgot you ever spent money, which is a very bad habit.
With this system, I'm hoping I'm able to survive. I should be able to considering I've already cut my grocery and morning coffee costs.
Anyone else have luck with the cash over plastic system?
Starting in march, I want to take out $150 cash every payday (every 2 weeks) and have that be my entertainment and more fund. Now, this doesn't include major bills such as rent, credit cards, phone etc. This is strictly entertainment, groceries, coffees, and meals out.
I have done this before and it's worked really well in the past. Because for me personally, if I can see the physical cash dwindling down in my wallet, I'm much less inclined to spend it. With plastic, it's easy to swipe and just forgot you ever spent money, which is a very bad habit.
With this system, I'm hoping I'm able to survive. I should be able to considering I've already cut my grocery and morning coffee costs.
Anyone else have luck with the cash over plastic system?
Success
February 22, 2013
Well, as promised, I went grocery shopping trying to take all my new rules into account. I must say, I am very proud of myself, finally feeling like I had a successful adult shopping trip! Woot!
My average grocery bill was $110, and it went down to $70. I got all very healthy and gluten free things, and I followed the advice of my commenters and stayed on the perimeter aisles of the store for the most part.
Although, I did go hungry. It was right after work, but that's my own fault. Yet, I resisted the chocolate monster as much as I could and came out the victor.
Now, if I keep this trend of cutting down my shopping and being more organized with my grocery money, lets see how much I'll be saving in one year.
$40 x 32 shopping trips in a year = $1280
Easy as that, I just saved myself $1280 a year. Every penn... nickel counts right?!
My average grocery bill was $110, and it went down to $70. I got all very healthy and gluten free things, and I followed the advice of my commenters and stayed on the perimeter aisles of the store for the most part.
Although, I did go hungry. It was right after work, but that's my own fault. Yet, I resisted the chocolate monster as much as I could and came out the victor.
Now, if I keep this trend of cutting down my shopping and being more organized with my grocery money, lets see how much I'll be saving in one year.
$40 x 32 shopping trips in a year = $1280
Easy as that, I just saved myself $1280 a year. Every penn... nickel counts right?!
The evil grocery store
February 18, 2013
Since living on my own, I have had a brutal war with grocery shopping. Without a doubt, I always seem to be on the losing end of that war. Grocery stores across Edmonton are laughing at me the minute I walk through the door. Am I the only one that feels grocery shopping takes way more effort and work than it actually should? I'm assuming so, because I am 23 and still haven't mastered it.
It's funny; every week I walk into Save-On Foods with a smile on my face and a feeling of hope that I will finally get enough food to last me, plus throw nothing away. So finally, in my journey to become a millionaire, I said enough is enough. Time to buckle down and finally see exactly how much money I am wasting every shopping trip.
On average, I spend about $110.00 every week and a half on groceries. So, let's break that down:
$110 x 32 shopping trips per year approx = $3520.00
You don't even have to say it; that number is WAY higher than it should be for a 20 something female living on her own with no roommates. I was astonished when I saw that. But, that being said, it is completely my fault it's that high. I tend to buy gluten free/healthy/organic foods for the most part, which are without a doubt more expensive then most other foods. At the same time, I am hugely unorganized when it comes to grocery shopping and I have nobody else to blame. I am not changing my eating habits though, I just need to re-adjust my spending and be way more organized when it comes to giving my local grocery store money.
With that number in hand, I then calculated a rough estimate of what I throw away in that same time period, which I already know is hard for me to write. I throw away about $30.00 of food before my next shopping trip, just due to the fact that it goes bad in that week and a half.
$30 x 32 shopping trips per year approx = $960.00
I can't even believe that number! I might as well throw that money from my balcony, which essentially is what I'm doing. That's horrible and I need to kick that habit ASAP. No wonder I'm not a millionaire yet...
While wallowing in my sadness, I came up with a few ways to help curb this trend, for me at least, hopefully they help others as well.
1) Never go to the grocery store hungry - I know everyone always says this, I just need to follow the advice. I normally always go after work, before I've had a chance to eat dinner. When you're hungry, the whole store looks like a giant chocolate bar, which I can't resist.
2) Plan out your meals for the week - I have never done this, which tops my list of reasons why I'm throwing away so much money. Buying random food items isn't going to help you during the week when you are making meals. You are without a doubt going to miss something or not use something.
3) Make a list and stick to it - This is in the same family as number 2. Again, I never go with a list, which means I end up either buying way to much food, or I miss many things that I thought I've made a mental note of. It also made me discover my memory isn't the greatest. Gotta love teaching yourself a lesson.
4) Designate one day a week to cook and prep your weeks meals - Now because of my 60+ hour work weeks (I wish I was exaggerating that number) I always get caught not having meals made. Thus, I eat out and don't use the food I have in my fridge. From now on, Sunday is my cooking day. Doesn't matter what other plans I have that day, I need to dedicate the time to prep my meals, so I not only eat healthier but am able to use up all my food. With this, I will be in my kitchen, drinking wine, blasting music and cooking up a storm every sunday. No questions!
5) Coupons, coupons, coupons - I was hesitant to put this recommendation in. Because coupons can hurt you in they aren't dealt with properly. I used to be the person that picked up a flyer of coupons and said "OH I could use this, this, this and this." But that is wrong on so many levels. That prompts you to buy things you might not actually need and you can end up spending more money without creating any savings. My advice is, make your grocery list, plan all your meals, then once that is done, consult your coupon flyer and see if any of the items you are getting have a coupon. If they do, bonus! If not, don't buy something you really don't need just for a deal. My boyfriend was the one that brought this to my attention. How right he is!
I plan on going grocery shopping tomorrow since my fridge is bare right now, I'll blog about my first organized and planned shopping trip. Fingers crossed I don't have to throw anything away for once. Although, my fingers don't need to be crossed if I'm prepared. Time to finally win the grocery shopping war.
It's funny; every week I walk into Save-On Foods with a smile on my face and a feeling of hope that I will finally get enough food to last me, plus throw nothing away. So finally, in my journey to become a millionaire, I said enough is enough. Time to buckle down and finally see exactly how much money I am wasting every shopping trip.
On average, I spend about $110.00 every week and a half on groceries. So, let's break that down:
$110 x 32 shopping trips per year approx = $3520.00
You don't even have to say it; that number is WAY higher than it should be for a 20 something female living on her own with no roommates. I was astonished when I saw that. But, that being said, it is completely my fault it's that high. I tend to buy gluten free/healthy/organic foods for the most part, which are without a doubt more expensive then most other foods. At the same time, I am hugely unorganized when it comes to grocery shopping and I have nobody else to blame. I am not changing my eating habits though, I just need to re-adjust my spending and be way more organized when it comes to giving my local grocery store money.
With that number in hand, I then calculated a rough estimate of what I throw away in that same time period, which I already know is hard for me to write. I throw away about $30.00 of food before my next shopping trip, just due to the fact that it goes bad in that week and a half.
$30 x 32 shopping trips per year approx = $960.00
I can't even believe that number! I might as well throw that money from my balcony, which essentially is what I'm doing. That's horrible and I need to kick that habit ASAP. No wonder I'm not a millionaire yet...
While wallowing in my sadness, I came up with a few ways to help curb this trend, for me at least, hopefully they help others as well.
1) Never go to the grocery store hungry - I know everyone always says this, I just need to follow the advice. I normally always go after work, before I've had a chance to eat dinner. When you're hungry, the whole store looks like a giant chocolate bar, which I can't resist.
2) Plan out your meals for the week - I have never done this, which tops my list of reasons why I'm throwing away so much money. Buying random food items isn't going to help you during the week when you are making meals. You are without a doubt going to miss something or not use something.
3) Make a list and stick to it - This is in the same family as number 2. Again, I never go with a list, which means I end up either buying way to much food, or I miss many things that I thought I've made a mental note of. It also made me discover my memory isn't the greatest. Gotta love teaching yourself a lesson.
4) Designate one day a week to cook and prep your weeks meals - Now because of my 60+ hour work weeks (I wish I was exaggerating that number) I always get caught not having meals made. Thus, I eat out and don't use the food I have in my fridge. From now on, Sunday is my cooking day. Doesn't matter what other plans I have that day, I need to dedicate the time to prep my meals, so I not only eat healthier but am able to use up all my food. With this, I will be in my kitchen, drinking wine, blasting music and cooking up a storm every sunday. No questions!
5) Coupons, coupons, coupons - I was hesitant to put this recommendation in. Because coupons can hurt you in they aren't dealt with properly. I used to be the person that picked up a flyer of coupons and said "OH I could use this, this, this and this." But that is wrong on so many levels. That prompts you to buy things you might not actually need and you can end up spending more money without creating any savings. My advice is, make your grocery list, plan all your meals, then once that is done, consult your coupon flyer and see if any of the items you are getting have a coupon. If they do, bonus! If not, don't buy something you really don't need just for a deal. My boyfriend was the one that brought this to my attention. How right he is!
I plan on going grocery shopping tomorrow since my fridge is bare right now, I'll blog about my first organized and planned shopping trip. Fingers crossed I don't have to throw anything away for once. Although, my fingers don't need to be crossed if I'm prepared. Time to finally win the grocery shopping war.
20 something wannabe millionaire
February 13, 2013
Yes, you read the title right. This isn't a joke, I swear! I have decided to try and become a millionaire before I hit the old age of 30. Now I know exactly what you are thinking. Yes, this sounds like a crazy idea. Yes, the chances of achieving this goal are slim. Yes, I understand what I'm getting myself into.
I know this wasn't the topic of my blog before, so I am shortly going to do a whole reconstruction of it. I may throw in a random unrelated story now and then, who knows!
Continuing on, let me explain my reasoning behind my decision to do this. I have always considered myself fairly money savvy; my mom taught me right from the beginning. I have always had an interest in money and the idea or potential it could bring. To add to that, I have also had a passion for writing since I was a wee one. I am by no means a Charles Dickens, and my grammar could without a doubt use some work. That being said, my love for sharing words and thoughts doesn't change. Thus, the idea to share my journey to become a millionaire before I'm 30 is born.
Now, let me give you some background on myself. I am a 23 year old living in Edmonton, Alberta, Canada. I have been living on my own since I was 20 and pretty much started my life after college with student debt and zero savings. Between the age of 20 and 23 I have tackled a majority of my debt and have started creating savings for myself to one day buy my own house. I live in an apartment by myself and I am completely independent, not getting outside help which is what I prefer. I have a full-time job as well as a part-time job, and I would consider myself a workaholic, which I'm okay with, because I love what I do!
With all that being said, I'm not going to consider my full net worth part of my journey to become a millionaire. My car, my future house, and all my other belongings will not go towards the total. This is strictly just savings.
I realize this is an insane goal and I only have 8 years to achieve it. I going to do everything I can to reach this target. I am also looking at this as an opportunity to learn more about personal finance, organize my life and create a comfortable future for myself, whether I reach my goal or not. Plus, writing about my experience along the way might help someone else achieve their personal and financial goals and that in itself is all the reasoning I need to start this challenge.
Lastly, critics of my journey are welcome. I will never be one to turn away advice, second opinions or negative feedback. I use that as motivation and I want to create a means of discussion on the whole idea of personal finance.
Wish me luck everyone...
I know this wasn't the topic of my blog before, so I am shortly going to do a whole reconstruction of it. I may throw in a random unrelated story now and then, who knows!
Continuing on, let me explain my reasoning behind my decision to do this. I have always considered myself fairly money savvy; my mom taught me right from the beginning. I have always had an interest in money and the idea or potential it could bring. To add to that, I have also had a passion for writing since I was a wee one. I am by no means a Charles Dickens, and my grammar could without a doubt use some work. That being said, my love for sharing words and thoughts doesn't change. Thus, the idea to share my journey to become a millionaire before I'm 30 is born.
Now, let me give you some background on myself. I am a 23 year old living in Edmonton, Alberta, Canada. I have been living on my own since I was 20 and pretty much started my life after college with student debt and zero savings. Between the age of 20 and 23 I have tackled a majority of my debt and have started creating savings for myself to one day buy my own house. I live in an apartment by myself and I am completely independent, not getting outside help which is what I prefer. I have a full-time job as well as a part-time job, and I would consider myself a workaholic, which I'm okay with, because I love what I do!
With all that being said, I'm not going to consider my full net worth part of my journey to become a millionaire. My car, my future house, and all my other belongings will not go towards the total. This is strictly just savings.
I realize this is an insane goal and I only have 8 years to achieve it. I going to do everything I can to reach this target. I am also looking at this as an opportunity to learn more about personal finance, organize my life and create a comfortable future for myself, whether I reach my goal or not. Plus, writing about my experience along the way might help someone else achieve their personal and financial goals and that in itself is all the reasoning I need to start this challenge.
Lastly, critics of my journey are welcome. I will never be one to turn away advice, second opinions or negative feedback. I use that as motivation and I want to create a means of discussion on the whole idea of personal finance.
Wish me luck everyone...
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