I really try to keep my spending in check. And 98% of the time, I am able to pass up spending. It helps working a job that requires long hours and having my paycheck automatically deposited into my account.
My monthly expenses are small-music lessons ($120-150) and gas ($70) and because of that I'm able to save much of my paycheck. [Starting in September, I'm thinking of going to every other week for my music lessons so that would cost $60-90/month.]
For reference, this summer I've been making about $1,000/month post-taxes. [My upcoming paycheck (the one I will receive this Friday) should be much larger than normal. I worked two weddings on Saturday and I am expecting a large amount in tips (for banquets, the tips are given to the Events Coordinator who then splits it up among the people who the banquet based on how many hours they put in).] Once school begins I expect to be making between $300-500/month.
This means on average I saved about $800/month this summer, allowing myselfing only $200/month to spend on my necessities.
I haven't been giving myself a lot of free spending money because I thought if I didn't have a lot of money at my fingertips (i.e. in my checking account), I wouldn't have the urge to spend, spend, spend.
I was wrong.
Knowing that I have almost $12,000 in my savings got to me and transfered $300 into my checking to spend on clothes and whatnot for school. I was thinking that if I bought these things now, I wouldn't need to go shopping for awhile.
I'm betting that I'm wrong again.
So I ask you this: do you think it is healthier to go on a major ($300-500) shopping spree once a year or do you think it would be better (or easier to control) if you gave yourself $30/month to spend on anything you wanted?
Controlling One's Spending
August 22nd, 2007 at 02:59 am
August 22nd, 2007 at 04:22 am 1187756536
It might be easier to track & control the spending if you did it once a year, and even at 43 years old and with no kids I still think the "back to school" shopping ritual is fun. [You should have seen me gazing at the box of crayons when I was at Office Depot the other day.]
On the other hand, it could be tough if you get a hole in your only pair of sneakers and had to wait 4 months for your annual shopping trip to replace them.
What if you took a hybrid approach, such as giving yourself $20 per month "pocket money" (for whatever), and then allowing yourself an extra $100-150 once a year for a big splurge?
By the way, it's really terrific that you are saving so much at your age! I wish I had been better at saving when I was your age!
August 22nd, 2007 at 01:49 pm 1187790582
August 24th, 2007 at 12:35 am 1187915736
My current spree is smaller than usual: all I need is a new pair of boots (for the winter 'course!) and few new pairs of jeans and slacks.
I'll start with $25/month as my spending allowance and see how that goes!
Thanks again!