I didn’t plan on going on a shopping spending freeze, but as I started going through my schedule for the next month, I knew I needed to curb my spending habits quite a bit. Well, I’m not not spending money, just reallocating it. With a handful of trips coming up and a certain procedure for Teddy coming up and I’ve been saving for a car (!!!), the shoes and the handbags and the jewelry and the dresses can wait.
While money can be a bit of a taboo subject, I think it’s an important thing to be aware of. Saving money and making smart choices with a budget are healthy habits we should be getting into when we’re young. I have always been a little OCD about my income/spending… even when I was super young; I babysat a few nights a week throughout middle and high school and barely touched what I saved. (Two major purchases I remember making were paying for a trip to Italy and a Coach handbag!)
Even when I moved to NYC, I basically had two jobs. A “real” job at a startup and then building my blog pretty much at night. It was extremely hard. Balancing the two workloads, but after a year… it was so worth it. To make ends meet, a lot of people I know get a second job out of college. It’s not the most convenient and it’s not the most fun, but it does help set you up for financial success if one paycheck isn’t cutting it. (All about the side hustle and multiple income streams!!)
When it comes to saving, I personally just pretend that I only have a certain percentage of my income. The rest goes straight into a savings account and it’s essentially like it doesn’t exist. (Unfortunately, the hard part for me is that my income is essentially commission so every month is different. But I always have a goal of putting a certain amount in the account no matter what… so some months I have less discretionary spending and my saving always remains constant.)
The major thing that I see all the time (and even feel it myself) is that there’s pressure to “keep up” with what other people are spending. The problem with this is a) everyone is different and b) you never really know someone’s real financial status. Have you read this article about L’wren Scott? I cannot even tell you how many people I know who have found themselves with debt trying to keep up with a certain lifestyle. I don’t think there’s anything wrong with saying, “Can we pick another restaurant? I’m on a budget.” or “Can we try this museum instead? It’s free entry this weekend!” Instagram and everything is can add even more pressure. (Recently, I’ve been falling victim to feeling jealous about other people’s apartments and insane vacations…)
The key, in my opinion, to proper budgeting is simply awareness. Awareness of what your income is, what expenses you have that are unavoidable, expenses that you can avoid when necessary, and even aware of what kind of personal spending habits you fall victim to. Switch to carrying cash only if you tend to overspend when shopping or buying too many drinks when out on the weekend. Download Mint for your phone to track spending and budgets on the go. Don’t avoid your bank account even if it causes anxiety… dig into it so you can start making really smart choices!
Knowing that I had Teddy and travel expenses coming up in the next four weeks really helped me make better decisions now so I don’t find myself disappointed in my saving next month. I even went shopping with my friend this past weekend and completely resisted spending any money despite the fact that I had more or less fallen in love with three pairs of shoes. (I mean, really… are these not perfect?!)
What money management tips do you utilize?
xoxo
I totally agree that sooo many people get caught up with 'keeping up' with other people. I'm the same way as you are with being super careful and OCD about money management and I do all of my fiance and mine's budgeting.
Great tips and I think spending freezes can help bring out some inner creativity!
AJ | TheAJMinute
Great post! I have recently become really aware of my spending habits too and I am trying to save more. A certain amount out of every paycheck goes straight to savings!
Hunter
Prep on a Budget
Carly this is a great topic to delve into since it is so taboo! On another note I find it AMAZING that you had two demanding jobs at one time. I'm a senior in college still trying to work out my schedule. Please consider doing a post with advice on how to manage your time!
http://collegeclarity.blogspot.com
Thank you for posting this! Something that needs to be addressed more. On a relatable note, I just did a post about tips for job interviews (so we can make money!)
laurenroseprep.blogspot.com
i put myself on a clothing/beauty budget, and its taught me a lot about my discretionary spending, yet its been much easier than i expected! i hope to continue this so that i'm purchasing things that i really love, not just because they're cute right now or on sale.
xo. jenn @ hello, rigby!
I've been dealing a lot with the same thing lately. What I ask myself is how meaningful is this for me? I've been spending so much on travel and transport around the city, but it's to enjoy experiences that are more valuable to me than another dress or pair of shoes so that's what I've chosen and I'm sticking to it.
Also, it can be frustrating, but it's important who you surround yourself by. I actually had a friend say you know I love that brunch place too, but I can get pricey – next month? I was taken back for a second because I've never had someone make a comment like this before, but it was actually good because it made me realize that though we're all pretty successful we're young and it's great that the people around me are working towards similar goals so that it's okay to speak up!
I've been dealing a lot with the same thing lately. What I ask myself is how meaningful is this for me? I've been spending so much on travel and transport around the city, but it's to enjoy experiences that are more valuable to me than another dress or pair of shoes so that's what I've chosen and I'm sticking to it.
I love this – I am getting married soon and I love the idea of just pretending we have a certain percentage of our income! Are you able to do your blog full time now?
great post! i write down every single thing i buy each month and that really helps me see where all of my money goes — it also makes sure that i stay within the budget I have created for myself. xo jillian – cornflake dreams
Wow. You write about saving money and end the post with an Rstyle link. Could you stoop any lower?
You took my comment! But I agree. I really enjoyed this post, Carly, but I feel like it was ruined by the affiliate link at the bottom. Somehow, you wrote multiple paragraphs about saving money, only to push readers to spend- and pay you in return- at the end.
I actually wrote multiple paragraphs about making choices that work for YOU. I love the shoes and just because I'm personally going through a month where I'm not spending money on shoes/clothes doesn't mean that everyone is on the same spending budget.
The post isn't a call to action to stop spending money altogether, the CTA is to be aware of your personal spending habits and to make the choices that work for you.
(Believe me, those shoes will be the FIRST thing I buy when my freeze is over!!! I really love them!)
I appreciate that you responded instead of just deleting my comment – but I do want to say that as a long-time reader, I feel like lately your posts have been littered with sponsored links and while I know blogging is your "job" now, I can't help but feel that you've lost a lot of the authenticity you once had, when it was just a hobby.
At least someone else said it. So sick of the rstyle links.
Carly, to second indian sundance again, thanks for replying instead of just ignoring, or worse, deleting. I don't have a problem with the idea that you might be saving, but others might be spending. That's a completely true and reasonable statement. However, my issue isn't with the idea that you posted a pair of shoes that you wanted. It's that you did so using that rstyle link that will stay on your readers' computers, even if they don't buy THAT pair of shoes, and will allow you to make money off of any purchases that they make. You could have just said, "I mean, aren't [shoe brand and style] just perfect?" Instead, readers have to click the link to see what kind of shoe you're talking about, and then you get money from the purchases that they eventually make. It just seemed out of place and wrong to be in this post. I'm sorry if this comes off as rude; I just wanted to give you some honest feedback on your blog because I really do enjoy reading.
Agreed, Wayward Diaries. Carly, I really do enjoy your blog and have for a long time but I feel like it's changing – and to some extent it should! You're changing, too, as you've graduated and moved to the big city, and all. I've really enjoyed following your blog as you make these big steps. I was a lot like you in college, but took a much different path when I graduated, so your perspective has been a fresh and interesting one to me. And lately it seems like you've been spinning your wheels a little, which happens to all of us, but I feel like I've been seeing a lot of "fluff" posts on TCP. Again, I know this is your job now, so I expect the Rstyle links from time to time (I actively choose to click on them when you've posted something cool that I never would have found otherwise!) but on this post it just rubbed me the wrong way.
I have given up shopping for clothes, bags, shoes, and home decor items (unnesccessary shopping) for Lent the past few years. It is amazing how I am still much more deliberate in my purchases even after Easter comes. I find that spending less on material goods reminds me that experiences (like trips) and loved ones (like your puppy!) really are where I want to spend my hard-earned money. I am happiest when my spending aligns with my priorities.
This is a great post and something I needed to hear at the moment. It's also the type of thing you don't usually see on a fashion blog, and I really really respect that. <3
I just came off a spending freeze… but then I went a little crazy buying things! But it is always a good idea to reflect on your spending habits!
Ashley | History in High Heels
I actually just blogged about this yesterday! (http://www.katethealmostgreat.com/2014/03/spending-freeze.html) I'm using a budget journal from May Designs (obviously monogrammed) to help me keep track of everything and then keep in mind what goes towards debt and savings from the very moment I receive my paycheck. I have expensive taste and a teacher's paycheck – with a bit of commission work for writing and blogging – so it can be really difficult!
Great piece! I enjoyed reading this post 🙂
Compliments to you, Carly, for talking about this. It definitely is hard with all the pressure from friends, but it is important to know when to speak up or just stay in. Nice to know that my favorite blogger feels the same way.
Your Friend, Jess
In regards to present day fashion, the fitness world has created a craze of certain items such as gym tank tops and yoga pants that are worn as casual wear by many people on a daily basis, whether they attend a gym or not.workout clothes.
the shoes seem like a more necessary expense than a car in NEW YORK CITY. car payments, insurance, fuel, parking, parking tickets… it all adds up quickly. and for what? so you can drive outside of the city every other week?
I can't tell you how much I appreciate this post, you literally read my mind. Living in a city like New York even just your daily expenses are astronomical (not to mention to constant parade of birthday, wedding, bachelorette, and shower gifts I'm being bombarded with at the moment) and it can start to feel like you're never going to get ahead. (Just this past weekend I called my parents in tears because a bill ended up being $200 more than I was anticipating). Like you, I allot a specific amount of money from each pay check and put it in my savings and try to completely forget it exists. But the part of your post that most resonated with me, was to not compare your finances to anyone else's. Here it's to easy to see other girls with the latest handbag or the chicest outfit and become green with envy and start to wonder why you can't afford that. It's a great point that you really have no idea what their financial status is. It's so easy to get sucked in to trying to keep up with everyone here but it is so reassuring to know I'm not alone in feeling that way. Thanks so much for this post, it helped me to put everything into perspective during this difficult week!
I loved this! I love having a budget and tracking money. I always tell people that the budget exists whether you choose to acknowledge it or not. 🙂
Thank you Carly for this post! It was definitely something I needed to hear as I have champagne taste on a beer budget… It has motivated me to really look at my current budget and start with the cash system again.
– Faith
The Adventure of a Future Teacher
Can I ask your rationale of saving for a car? From having lived in NYC, I know that having a car can be a huge expense (gas prices, parking, etc…) and many people instead choose to use public transportation and/or car sharing programs such as ZipCar. It seems like a strange choice based on where you live (and also for the content of this post since it is about saving money and not trying to live other people's lifestyles), so I was just wondering what is making you want a car?
It's something I'm still going back and forth on honestly. Because I can work from anywhere, I am thinking that it would be great to be able to drive and get out of the city on the weekends. Traveling with a dog is actually really difficult on planes (for me at least, I don't enjoy it!) and dogs aren't allowed on trains… I have friends in RI and Boston and Long Island that I'd like to be able to visit at the drop of a hat! I've heard mixed reviews about car shares and rentals… because they can get scooped up really quick during the summer when everyone wants to get out to the Hamptons on the weekend. I'm looking at Fiats which are actually NOT that expensive relatively speaking (would be about as much to rent a Zipcar for three days a month…). Also, leasing a car from Fiat in NYC comes with $99/month garage parking, which is obviously a huge saving in terms of parking/tickets from street parking.
It's a big decision though, so I'm not rushing into it… Just keeping it on my radar as I make choices with spending in the near future 🙂
Please do not lease! Your best bet is to buy a gently used (year old, low miles) fiat. The car has lost that first year's depreciation but is often still under warranty.
This is a great article with so many applicable tips. As a college student, balancing budget is crucial. I have to think about groceries, gas, rent, textbooks, and save money for that new J.Crew dress I want! I am a junior at James Madison University and am mentioning this in a blog I keep for my PR class (www.yourbestfouryears.com). Thanks for all your advice!
Julie
Great tips! For me, my biggest weakness is impulse shopping online. What I do is put the items I like in my shopping cart and if I remember about them after a few days and still feel like my wardrobe just wouldn't be complete without them, I then check to see if they're on sale. If it's not on sale, I'll rarely buy it. It's not a foolproof method but at least when I do purchase, I'm not spending nearly as much as full price AND they're items that I've really thought through! It's a realistic expectation that works for me.
I'm trying to save my money, too, but it's hard! This post really put saving into a new perspective!
Kristin
thedixiedaisy.blogspot.com
Let L'Wren Scott rest in peace. It's tasteless how people are continuously bringing up her financial situation after her death.
I really liked this post Carly! I use LearnVest to track my spending, I started this year and I love it! At the end of each month I put the numbers in a spreadsheet so I can compare month to month. I'm also on a bit of a spending freeze at the moment as my last day at my job is coming up next month and I'm not sure when my next paycheck will be after that..definitely a little stressful! (It was my decision though so I am happy with it:))
xoxo, Elena
the20-somethingproject.blogspot.com
Saving money is really hard for me but being in college now I have learned how to save more and more. I think its hard when you get caught up in online shopping and seeing what people have all around you. It is important though to realize that paying for school should be the number one priority and everything else comes later!
Annie
A College Confession
I definitely agree with you on spending. I have direct deposit for my paychecks so a good chunk of it goes into my savings without me having any time to miss it.
-Alex
http://www.monstermisa.blogspot.com/
I like how you act as if part of your pay check never even existed in the first place so you weren't tempted to spend it! That's what my parents made me do when I got my first job and I'm so thankful for it now! During the summers, I get to spend my tips (which isn't a ton because I just work at a locally owned fast food shop) and then the rest goes directly into savings! It is seriously the best thing ever!
I have no problem telling someone I can't do something or go so we here because I don't have the money. My financial health is more important than what they think of my situation. I recently was invited to a communion, a wedding, and a christening. As with the wedding, there was a bachelorette party too. I was honest in declining my invitation to do bachelorette party activities because with the three other events coming up, it would put me over my budget.
I just can't imagine where the societal pressure on young women to go out to brunch every day and buy thousands and thousands of dollars worth of shoes and bags and comes from…
I'm so glad you opened up a dialogue about budgeting and living within your means! I do the same thing, where I basically convince myself that I'm broke all of the time. It may not be ideal, but it works!
XX, SS || A Little Seersucker Sass
Great post! Too bad you don't mention the many many benefits you receive via sponsorships, free products for mentions on your blog, free products, your advertising on the sides, and however much you make off of using sponsored links all from your "second job".. or hobby/business. So your second job seems like a dream to most of your readers, the ones close to you in age are focused on paying utilities, rent, a car payment and student loans. What a difficult balance…
It's a trade off, there are certainly things I get as perks… but I'm also a business owner. I don't have a steady paycheck, paid vacation time, sick days, health insurance, professional development, office space. I quit my job to blog full time which means I have other expenses that most 24 year olds wouldn't have like lawyer fees, accountant fees, corporate taxes, etc. At the end of the day, I 100% love what I do and wouldn't trade it for the world and I'm 100% thankful that this is what I get to do.
Not having a steady paycheck because a CHOICE. Owning your own business is a risk, rewarding yes, steady pay maybe not. So it's difficult to read you say this was difficult, considering YOU made the decision to leave your full time for your side business which is now your livelihood while most twenty year olds are adding a second job.
Paid vacation, you're the owner so who is going to pay you to vacation unless it's being gifted to you, plus you don't have to request the time off if you're the sole owner. You can pre-write your posts or have guest posts if you want to take time off, no one would know if you had your posts queued. Same for sick time, one of the many purposes of sick pay is so you still make your base pay regardless if you fall ill with the flu for a week or two, and this is usually EARNED time as part of a benefit for working or others have this time accounted for in paid leave time (one bucket). You can earn money from your blog from the comfort of your bedroom, this is a benefit!
Health insurance is another choice if you're the owner purchase insurance or stay on your parent's coverage, office space you can work from anywhere and you're paying for internet at your apartment.
Yes, you do have those fees but they are the cost of doing business and no most twenty year olds aren't facing these time of fees.
Love your flats in the pic!
~Sophia
http://plaidismyfavouritecolour.blogspot.com/
Hi Carly,
Enjoyed the post! That "jealousy" bug is called FOMO (Fear of Missing Out), and is infecting everyone with a social media account, especially Instagram. Funny, I just wrote about it on my own blog: http://taylorhenriquez.com/2014/03/24/fml-i-have-fomo-2/
As far as money management tips go, an emergency fund with at least 6 months expenses saved, or more – if you are in a freelance position, is the way to go in case of a job loss, car breakdown, hospital bill, etc.
Wow, people sure are nasty here! I've found spending freezes to be so difficult but rewarding in the end. No impulse buying means you can purchase something at the end of the freeze that you truly have coveted (and really thought about). Nice to see someone is on the same page as me!
Wow, people sure are nasty here! I've found spending freezes to be so difficult but rewarding in the end. No impulse buying means you can purchase something at the end of the freeze that you truly have coveted (and really thought about). Nice to see someone is on the same page as me!
If you insist upon putting rstyle links in every single post, it might be nice if you put links to affordable alternatives to JCrew every now and then. You have labeled yourself 'The College Prepster', and most college students can't afford an entire wardrobe from JCrew, it might help with the frustration from many readers lately, either adjust your links to better suit your target audience or adjust your blog to be targeted towards young adults/professionals.
good luck on thenew blog
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