A Spender Needs Help Saving!

[PrincessSarah314]

I'm not a saver, never have been. I'm 31 and have just opened a savings account after some persuading by my mother and my DBF.

We're going to POFQ in August and I need to save about $2,000 for the trip. Can you please suggest some simple and painless ways for me to cut costs?

I only make a very modest salary and I'm struggling to think of expenses I can cut.

Thanks!

 

[csmommy]

Why don't you give us an idea about where you spend your money so we can suggest places you may want to trim back.

What do you spend you $ on?
Are there ways to save on utilities like cable or cellphone?
Do you eat out a lot?
Does your company offer direct deposit? If so have them take $111 out each week & put it in a savings a/c I did not have ATM access to. There are 18 Fridays starting in April until August begins & $111 x 18 = $1998

 

[Marionnette]

I'm not a saver, never have been. I'm 31 and have just opened a savings account after some persuading by my mother and my DBF.

We're going to POFQ in August and I need to save about $2,000 for the trip. Can you please suggest some simple and painless ways for me to cut costs?

I only make a very modest salary and I'm struggling to think of expenses I can cut.

Thanks!

You will need to put away at least $400/month in order to meet your goal. Is there that much excess spending in your life that you can do this? If not, then there's nothing else to do but find a way to make more money - about $100/week!

 

[PrincessSarah314]

Why don't you give us an idea about where you spend your money so we can suggest places you may want to trim back.

What do you spend you $ on?
Are there ways to save on utilities like cable or cellphone?
Do you eat out a lot?
Does your company offer direct deposit? If so have them take $111 out each week & put it in a savings a/c I did not have ATM access to. There are 18 Fridays starting in April until August begins & $111 x 18 = $1998

I spend the majority of my spending money in 2 places: the clothing store and bars. I enjoy the nightlife and spend an average of $150-$200 per week on new clothes and nightlife. I know that it seems like a no-brainer to eliminate this but I'd like to keep it in some way since it is my only relaxation time. I work a job that requires me to be on-call 24 hours a day 7 days a week via telephone so I need to unwind sometimes.

My cellphone is affordable at about $75 a month for unlimited everything.

I get paid on Wednesdays and my company does not do direct deposit.

We eat out maybe 2 or 3 times per week at a total cost of around $60.

 

[scrapquitler]

I spend the majority of my spending money in 2 places: the clothing store and bars. I enjoy the nightlife and spend an average of $150-$200 per week on new clothes and nightlife. I know that it seems like a no-brainer to eliminate this but I'd like to keep it in some way since it is my only relaxation time. I work a job that requires me to be on-call 24 hours a day 7 days a week via telephone so I need to unwind sometimes.

My cellphone is affordable at about $75 a month for unlimited everything.

I get paid on Wednesdays and my company does not do direct deposit.

We eat out maybe 2 or 3 times per week at a total cost of around $60.

Drink a little less while you are in the bar maybe have one or two less drinks each time you are there. If you go to the bar twice a week, that's going to save at least $20 per week if have two less drinks (assuming that you drink only a $5. drink, it could easily save you a lot more if you drink top shelf).

Don't buy any new clothes for a month or two. You can go to the store and look or try on, if that really makes you feel better, but don't buy. Or limit yourself to one item of X dollars per week or trip. Instead of eliminating, just cut down.

Eat out only once a week instead of twice. Or go out to breakfast or lunch instead of dinner, its usually a lot cheaper.

Between those three things, you could save a few hundred per month.

Another thing I do: never spend coins or one dollar bills. At the end of each day, I throw them in a jar on my dresser. It adds up very quickly and it's almost unnoticeable.

 

[GoofyGirl75]

Really, I think it's just a matter of priorities. If you choose to spend all of your money buying clothes and going out, that's fine. But if you want to save some for another purpose, you'll have to CHOOSE to eliminate some of what you're spending on these things.

My suggestion would be to take $100 from each weekly paycheck and put it into savings IMMEDIATELY upon getting your check. Whatever is left, go out and buy clothes with, but when you run out, you're done for the week.

You might also want to consider saving up an emergency fund before going on vacation, but obviously that would mean putting more aside, or moving your vacation to a later date.

Good luck.

 

[csmommy]

I spend the majority of my spending money in 2 places: the clothing store and bars. I enjoy the nightlife and spend an average of $150-$200 per week on new clothes and nightlife. I know that it seems like a no-brainer to eliminate this but I'd like to keep it in some way since it is my only relaxation time. I work a job that requires me to be on-call 24 hours a day 7 days a week via telephone so I need to unwind sometimes.

My cellphone is affordable at about $75 a month for unlimited everything.

I get paid on Wednesdays and my company does not do direct deposit.

We eat out maybe 2 or 3 times per week at a total cost of around $60.

OK - I hear you. If I were you, when I went to the bank to cash/deposit my paycheck I would IMMEDIATELY put $100 per week into a savings a/c where I could not touch it with my ATM card. Then you know what you have left to spend on dinners, bar & clothes.

 

[angierae]

I spend the majority of my spending money in 2 places: the clothing store and bars. I enjoy the nightlife and spend an average of $150-$200 per week on new clothes and nightlife.

If you make a "modest" salary and you're spending $800 a month on clothes and going out, in my opinion you need to take a closer look at your priorities. If that's what you enjoy spending your money on, that's your business, but it's going to make it very hard to save money for other things.

 

[brymolmom]

I spend the majority of my spending money in 2 places: the clothing store and bars. I enjoy the nightlife and spend an average of $150-$200 per week on new clothes and nightlife. I know that it seems like a no-brainer to eliminate this but I'd like to keep it in some way since it is my only relaxation time. I work a job that requires me to be on-call 24 hours a day 7 days a week via telephone so I need to unwind sometimes.

My cellphone is affordable at about $75 a month for unlimited everything.

I get paid on Wednesdays and my company does not do direct deposit.

We eat out maybe 2 or 3 times per week at a total cost of around $60.

A budget is a good place to start. Write down everything you spend starting now, every single quarter that is used in a vending machine. Then decide what you are willing to budget for each category - and then stick to it.

What are some of your other expenses? A modest salary and having enough extra to spend $200 a week on entertainment/clothing is pretty impressive. Your rent, car (if you have one), insurance, internet, cable, etc. must be very reasonable.

In the end it will come down to what you really want - saving is a sacrifice, so you need to figure out what you are currently spending that you are willing to sacrifice. But I too (along with your dbf and mom) strongly encourage you to start now because eventually it doesn't feel like as much of a sacrifice - it actually starts feeling good. Start small if you need to - maybe cut out $25 a week from your frivolous spending and save it instead...try to start increasing that each month or maybe every other by $5. Or, next time you get a raise, be ready to change your direct deposit to take the entire raise amount and put that into your savings account - you won't feel that one at all!

Honestly there's no truly easy way - it's work, but it's worth it!

 

[MEM]

It might help for you to think of your clothing and bar purchases in terms of what that money equals in Disney terms. A blouse for $80 (that you don't need) will equal one day's admission to a Disney park. A third drink at the bar (that you don't need) will equal a counter service meal at POFQ or one of the parks. A pair of shoes for $200 (that you don't need) will equal one night at POFQ.

I would also suggest you try to stop thinking of your retail therapy and nightlife as something you "need" to do because of your stressful job. Its easier said than done - what my DD15 and I do is take a small amount of money shopping and no credit cards. Its a challenge to see how well we can do on the $20 (or whatever) we allow ourselves to spend. Sometimes, in fact, most times, we come home without spending anything.

 

[Marionnette]

I spend the majority of my spending money in 2 places: the clothing store and bars. I enjoy the nightlife and spend an average of $150-$200 per week on new clothes and nightlife. I know that it seems like a no-brainer to eliminate this but I'd like to keep it in some way since it is my only relaxation time. I work a job that requires me to be on-call 24 hours a day 7 days a week via telephone so I need to unwind sometimes.

My cellphone is affordable at about $75 a month for unlimited everything.

I get paid on Wednesdays and my company does not do direct deposit.

We eat out maybe 2 or 3 times per week at a total cost of around $60.

If you're spendig that kind of money on clothes then you must have a closet full of stuff that you don't wear. If it's really good quality stuff, take it to a consignment shop or put it up for sale on ebay. If it is moderate quality stuff, try selling them and anything else that you don't need at a yard sale.

$60 is not a lot for 2 or 3 meals out but if you cut it down to 1 or 2 you will save $30/week. Cut your entertainment/clothing spending down to $75-$125 per week and you will have your $100/week that you need to save without having to sell a thing.

Ultimately, it's going to be up to you as to what you value more. If the trip is extremely important to you then you will find the discipline to put the money aside. If the weekly shopping and nightlife are a bigger priority then you might need more than 5 months to save that $2K.

 

[ebert]

A few tips that I found here (note: This was for Disney World, but the content pretty much applies to most family vacations) include simple things like "Travel Off Season" as well as ones that we all forget like "Don't buy souvenirs until the end of your trip". And you wouldn't believe how much of your budget goes to expensive food at the concession stands. Just eating lunch back at the hotel (if it's close enough. If not, the card, or in the picnic area) can save you a TON of money. Good luck getting your spending under control and have a great trip!

 

[Marionnette]

A few tips that I found here (note: This was for Disney World, but the content pretty much applies to most family vacations) include simple things like "Travel Off Season" as well as ones that we all forget like "Don't buy souvenirs until the end of your trip". And you wouldn't believe how much of your budget goes to expensive food at the concession stands. Just eating lunch back at the hotel (if it's close enough. If not, the card, or in the picnic area) can save you a TON of money. Good luck getting your spending under control and have a great trip!

Judging from the pretrip report in the OP's signature, she is not looking for ways to save AT Disney. Her trip is already planned. She's looking for help with saving up ahead of time to pay for what they have planned.

 

[Mickey1Fan]

The mother in me strongly advises that it is time for PrincessSarah to start a budget, which is too funny since I am going to provide a link to Gail Vaz-Oxlade's web site. She has a TV show called 'Princess' where she helps women get a handle on their finances, this is made just for the OP I think.

http://gailvazoxlade.com/resources.html

Gail has several options of interactive worksheets to choose from. Have fun and happy saving.

 

[teacup princess]

A basic way to start budgeting and seeing where your money is going is to use the envelope system. Lock away the credit cards for a month and give it a try. When you get your paycheck, cash it, pay your bills, and then divide the rest into evelopes. There's a $100 envelope for Disney that gets put away. A $50 evelope for clothing. $50 for the bar and so on. When the money from the envelope is gone, it's gone. There's no stealing from the other envelopes. Once you start handing out cash and seeing that cash dwindling away by midweek you'll start to think twice about do I really need this third drink? Can I pull something out of the closet I haven't worn for a while instead of buying this new shirt, ect? Eventually you'll get the hang of it and won't need the envelopes anymore and will have a better handle on what you're priorities are for spending money.

 

[PollyannaMom]

...Can you please suggest some simple and painless ways for me to cut costs?...Thanks!

Each time you spend money on something other than your household bills (rent, for instance, doesn't count) put the exact same amount in savings.

If you tend to spend cash, carry an envelope in your purse to put it in, or if you use a debit card, carry a notebook and write it down. - Deposit or transfer the total into your savings account at the end of the week.

This method gets you started saving, even if it's small amounts, and also makes you evaluate purchases like clothes and drinks more closely, since each item effectively "costs" you twice as much.

 

[cglaura]

I would start by listing all of your required payments, ie:

Rent/Mortgage
Electric
Cable
Phone
Cell Phone
Food
Gas
Life Insurance
Health Insurance
Emergency Fund (at least 6 months of the above items total)
Retirement / IRA
Clothing (necessary...for example needed for work, not for fun purchase)

Then what is left over divide how you want between vacation and bars/nightlife.

If you are not paying any of those now (living with parents or dbf), then I'd still put what you would be spending if on your own away...never know when circumstances might change and would be a good idea to have a nice nest egg built up.

 

[angierae]

The mother in me strongly advises that it is time for PrincessSarah to start a budget, which is too funny since I am going to provide a link to Gail Vaz-Oxlade's web site. She has a TV show called 'Princess' where she helps women get a handle on their finances, this is made just for the OP I think.

http://gailvazoxlade.com/resources.html

Gail has several options of interactive worksheets to choose from. Have fun and happy saving.

Thank you for this link - I'm not the OP but I think the budget spreadsheet she has on there has FINALLY convinced me to go cash-only for my non-bill spending starting in April. I'm always afraid to try this because I think I'll spend cash faster, but I think it's time to at least TRY.

 

[PrincessSarah314]

Drink a little less while you are in the bar maybe have one or two less drinks each time you are there. If you go to the bar twice a week, that's going to save at least $20 per week if have two less drinks (assuming that you drink only a $5. drink, it could easily save you a lot more if you drink top shelf).

Don't buy any new clothes for a month or two. You can go to the store and look or try on, if that really makes you feel better, but don't buy. Or limit yourself to one item of X dollars per week or trip. Instead of eliminating, just cut down.

Eat out only once a week instead of twice. Or go out to breakfast or lunch instead of dinner, its usually a lot cheaper.

Between those three things, you could save a few hundred per month.

Another thing I do: never spend coins or one dollar bills. At the end of each day, I throw them in a jar on my dresser. It adds up very quickly and it's almost unnoticeable.

I love the idea about never spending coins or singles. Thanks!

 

[PrincessSarah314]

Really, I think it's just a matter of priorities. If you choose to spend all of your money buying clothes and going out, that's fine. But if you want to save some for another purpose, you'll have to CHOOSE to eliminate some of what you're spending on these things.

My suggestion would be to take $100 from each weekly paycheck and put it into savings IMMEDIATELY upon getting your check. Whatever is left, go out and buy clothes with, but when you run out, you're done for the week.

You might also want to consider saving up an emergency fund before going on vacation, but obviously that would mean putting more aside, or moving your vacation to a later date.

Good luck.

I already take a certain amount of money aside each week for the savings account that I just set up.

I only spend cash so I am used to running out of money and being done for the week.