Tip Tuesday: How not to spend every dime you make

I am going to start a new component of this blog: Tip Tuesday.  Since I’m starting to get a hang of this grown-up thing, I’ll post tips about what I’ve learned in life.  It will happen on Tuesdays.  It’s a novel idea, really

This Tuesday, I feel like giving a few hints on how to save money.  I don’t mean finding coupons so that you can buy two pairs of shoes instead of one.  I mean actually saving money.  I have a finance background, so saving money is near and dear to my heart.

You know that euphoric feeling you get when you buy a really hot pair of skinny jeans that make your ass look like a dream?  I get that same feeling when I see my savings account balance go up.  I know that we are living in tough times, and trust me, I more than understand how money can be tight, but we all have to adapt.  You never know what may happen six months from now.  With that said, we all need to have some money stashed away for a rainy day, an emergency, retirement, etc.  Here are a few simple tricks towards getting there:

1) Open a high-yield savings account

Having a savings account is crucial.  Banks like ING Direct and Ally offer free savings accounts with higher interest rates than you will find at your standard brick-and-mortar bank.  I recommend having your savings account at a different bank than your everyday checking account.  That way, it takes a bit longer to move funds from your savings account to your checking account, and that lack of instant accessibility makes it harder to spend money on a whim.

2) Utilize your accounts and direct deposit to your advantage

Have a portion of your paycheck sent directly to your savings account so that you never even see the money in your checking account.  If you don’t see it, you won’t be tempted to spend it.  In addition to a savings account, I’ve also found that having two separate checking accounts is helpful for me.  One checking account is strictly for my fixed monthly expenses (car payment, insurance, cell phone bill, etc) and those payments are automatically debited.  I never have to worry about payments bouncing since the same amount of money goes in and out every month.  The second account is for debit card access for things like groceries and going out to dinner.  If there isn’t any money in there, I can’t spend anymore, and those leather boots have to go back on the shelf.

3) Use automatic payment for bills if you can’t handle it yourself

I don’t know about you, but I am not one to sit down and write a million checks every month.  I need that to just happen automatically.  If I had to pay by hand, the bills would sit on my desk, get lost, sit in my car with the stamps on them, and wouldn’t get paid on time.  I’d then be stuck paying late fees all because I’m lazy.  If you are good enough at paying bills, bless your heart.  We all know our strengths, and that just isn’t one of mine.

4) Keep your receipts…and actually look at them

I would say that the majority of people have absolutely no idea how much money they spend over the course of a year.  If you kept track, you would probably be shocked.  $4 at Starbucks here, $10 on lunch there…it all adds up.  Take a week, even a month, and keep all of your receipts.  Tally them up at the end of that time period and see just how much you are spending.  In looking at your spending, you can get a better idea of where you can make some sacrifices on things you don’t really need.  Try making your coffee at home a few times a week, and you can put that spare cash into your savings account.  If you don’t want to tally everything by hand, try using a website like Mint, which helps you do it online.  It shows you a fun little spending cloud, pie charts, budget trackers and other visuals to see where your money is going.

5) If you have a 401k or other employer sponsored plan, use it!

Many companies offer a match for your 401k/403b contributions.  If you think you are too young to start saving for retirement, you are dead wrong.  It’s never too early to start, and saving something is better than saving nothing.  If nothing else, contribute at least as much as your company will match, which can be up to 6% or even higher, depending on the employer.  If you choose not to contribute and don’t capitalize on your employers offer to match your contributions, you are completely missing out on money that your company is willing to give to you.  You wouldn’t tell your employer “no thanks, I don’t need my last paycheck for the year” would you?

6) Eat at home

Seriously.  I don’t think this needs an explanation.  Try to cook more of your own meals.  You’ll know exactly what you are eating, and we all know that making your own food is significantly less expensive than going out to eat every night.

7) Break up with plastic

If your spending is getting out of control, take your debit/credit cards out of your wallet and only use cash.  It’s much harder to part with a crisp $50 bill than it is to just swipe and forget about it.  When we use plastic, we become detached from the money we are spending.  Half the time, I have no idea how much I just spent at Target since I swiped my card before the cashier even finished scanning.  If you are carrying balances over on your credit cards every month, everything you buy becomes that much more expensive.  Using credit cards definitely isn’t a bad thing if you can do it properly, but just keep it in check.

8) Take advantage of your credit card benefits

Yes, this counters #7, but if you are a responsible credit card user, they can offer some really great benefits.  You can get free travel insurance, discounts on everyday items, extended warranties on technology purchases, free rental cars, and loads of other things.  Read into your credit card’s program description to learn about the advantages you may be missing

I think these tips are enough for now.  Not every Tip Tuesday will be money-related, so I promise it won’t be dry and long winded like this every time

If you have any specific questions, feel free to email me at kindofagrownup@gmail.com or comment below.

*Kim

A How-To Guide on Public Transportation

I have the absolute pleasure of riding the oldest public transportation system in the country regularly.  In all seriousness, it generally gets me to and from work relatively unscathed, and I save the $35+ per day that I would spend parking downtown.  Nonetheless, my 4 years of weekday rides has given me some insight into what you should and should not do to make your trip on the subway successful.  Take this as light-hearted.  I promise that I’m not as bitter as this post may make me seem

DO have the proper stance.  Stability is key when you don’t want to make physical contact with the creepy stranger next to you.  I have found that standing with my feet shoulder width apart and my body parallel to the direction of the train allows for ultimate balance.  I generally don’t even need to touch the yucky hand poles or those weird rubber straps.

DO remain aware of your personal belongings.  This is two-fold.  It’s important to keep your eye on your stuff so that no sticky fingers get into your purse.  It’s also important to realize that your giant backpack is inconveniencing everyone around you.  If your backpack turns you into a Ninja Turtle-sized obstacle, please take it off and put it at your feet.  You won’t keep bumping the person behind you, and people in the middle of the train can pass you as they exit.

DO give up your seat for old people / pregnant women / people with crutches / anyone who looks like they need to sit down more than you do.  And don’t play the “oh, I was so engrossed in my Kindle or phone that I didn’t notice the 80 year old lady standing in front of me” game.  I see what you’re doing, buddy, and it isn’t becoming.  The 10 minutes of standing won’t kill you.

DO try to have a general idea of where you are going and what train line will get you there if you aren’t a train regular.  There are several online tools and apps that allow you to plan your trip, tell you what lines to take, where to change trains, etc.  If you are confused, ask someone on the platform before you get on the train.  Most of the time, someone will give you the right answer.  Most of the time…

DO step off the train if you are blocking the door.  If not, you are just creating a bottleneck, and I have been known to put my shoulder into it when I can’t exit the train.

DON’T eat McDonald’s.  It just makes me want McDonald’s, and I end up hating myself for getting a 6-piece nugget on the drive home.  Actually, don’t eat in general.  No one wants to watch you chew with your mouth open.

DON’T listen to music on your phone/iPod sans headphones.  Or with headphones loudly enough for me to hear.  It really blows up your spot when you are rocking out to “Baby” by Justin Bieber.

DON’T have a full blown conversation on your cell phone.  We are all trapped in a small, confined area.  I don’t need to know about your recent bunion procedure, your daughter’s dead-beat boyfriend, or what you are making for dinner.

I think this might be enough for one day.  I could come up with these little tips and tricks all day long, but I don’t want to overwhelm anyone

*Kim

Scrooge McKim

One unfortunate part of growing up is learning that Santa is doesn’t exist.  There is no man in a big red suit flying around in a sleigh tossing gifts down your chimney.  Instead, it’s your parents/family listening to you whine while you pour over the Sears Wish Book, dog-earring the pages of the 700 toys that you want.  Key word: want.

This year, stores like Walmart and Target were open on Thanksgiving in many places to get a jump start on the holiday shopping season. Really?  REALLY?! I don’t know about you, but on Thanksgiving, I want to stuff myself full of turkey and spend the day on the couch pretending to care about football with my husband.  If I were a Walmart or Target employee, I’d want to be doing the same thing.  I would not want to have to cut my time with my family short to watch people trample each other for flat screen TVs.  I made the mistake of going shopping on Black Friday one time.  Never. Again.

And then there’s Christmas.  Christmas, to me, is trimming the tree while listening to Michael Buble sing “I’ll Be Home for Christmas.”  It’s about driving around and looking at lights, sipping hot cocoa, and hoping that it will snow just enough for a white Christmas, but not enough for me to start swearing while I clear three feet of snow off my car.  It’s about spending time with family and friends and just enjoying each other’s company.  I guess the presents are a bonus, but should not be the center of the holiday.  Nonetheless, we’ve made the gifts #1, with everything else a distant second.  Don’t get me wrong, I love buying gifts for people.  I just don’t like being told what I need to buy and when I need to buy it to have a successful holiday season.  Holiday shopping is stressful.  There is always that inner dialogue you have with yourself when buying gifts.  ”Is this too much?  Not enough?  Do they even want this?  Crap, what if (insert random name here) buys me a gift and I don’t get him one?”  It ends up being more stressful than fun, and everyone is just glad that it’s over on December 26th.

Do we even remember the true meaning of Christmas?  Somewhere between Baby Jesus lying in a manger and today, something was lost in translation.

Let’s make a deal.  If we usually exchange gifts on Christmas, let’s skip it.  Instead, let’s hang out once this holiday hoopla dies down.  Better yet, let’s go out for a nice dinner, get a couple of drinks, and laugh as we watch other people schlep around 10 shopping bags filled with stuff that people with probably return anyway.  I want to spend time with you more than I need another scarf.  Comprende?

*Kim