September 16, 2013

How To Save Money

We live in a consumerism world and we are pushed to live a certain lifestyle. But we are not all Jane Aldridge, Man Repeller and Blonde Salad. Most of us can’t afford Prada shoes every month unless we live at home, have wealthy and generous parents or we have a rich boyfriend/husband to mooch.

I always thought schools need to teach you basic finance as I know so many people who doesn't know about credit lines, loans, and just managing money in general. Even though they have a full time job, they have a huge debt, no savings or still rely on others to financially support them.

I’m grateful for my parents teaching me how to handle my finance. I am not from a wealthy family, I have a 9-5 job and I'm 100% financially independent. And thanks to my parents' teachings, I own a house, a nice car, my Chanel, Louis Vuittons and other luxury goods and still manage to have money to travel. Currently I’m working on buying another house. So I thought I'd write some tips I follow.

Keep in mind that while I save, I also go out a couple nights per week and splurge when I feel the time is right- every pay cheque day I take my boyfriend out for a fancy dinner and drinks, and I’m a sucker for splurging on skincare and designer bags…

How NOT to Save 
1) Penny pinch and become a life hating Grinch.
2) Cheap out at other’s expense. Ie give shitty tips, bumming drinks off people, "forgetting" to pay your friend back. Not cool bud. Not cool.


How To Save 

1) Don’t spend more than you make
I used to work at a restaurant where a lot of times you only make about $40 tips. Still, the staffs there get a Starbucks coffee & muffin before they start and a full-not-the-cheapest-meal during. They then have a few beers and food after work. Those guys take home less than $40 at the end of the day. #SadPanda

2) Pay off your student loan ASAP
… And put more than just the principal payment! You only have 6 months grace period after graduation before the government start charging for interest. Even if the interest rate is 3%- 3% of $50,000 is a hefty $1500. That’s enough for a Chanel wallet or a nice trip. Yes, school is busy and stressful, but $3 coffee in the morning and $10 campus food daily doesn’t help with that loan.

3) Don’t EVER borrow from VISA
Interest rate for Visa is around 6%, to quote my dad: "They're highway robbers!". Don’t be stuck paying that 2 week Thailand trip for the next 2 years. One less vacation or luxury product isn’t going to kill you.

4) Hide your money
Set up your bank to have automatic withdrawal to your savings account on your payday so you don’t even see that money. You can’t spend what you don’t see. But when you do check on it every blue moon- you mentally ho ho ho giggle like Santa Claus.

5) Stop buying crap
You don’t need another neon shirt. You don’t need those trendy yellow and blue reflector sunglasses. You don’t need a baroque print skirt. You and I both know that they go out of style and take up closet space. They clutter your life and when you look at them a year later you will regret buying them. Save your money and invest in a timeless purchase.

6) Decide what to cut and what to splurge
Instead of a personal trainer, spend it on a basic gym membership and have a mental commitment. Instead of having an alcoholic drink at a restaurant, go for pop, or better, water- more healthy for you anyway. Instead of the $5 gelato, spend the $5 on a tub of Breyers at the grocery store and you can eat it for weeks. Instead of a weekly manicure, just upkeep it yourself- People won't judge you if you don't have a perfect manicure (And if they do, they need a life and you need new friends). And you don’t need gourmet organic culinary bread. It’s nice to have those things, but they should be treats, not habits. Wouldn’t it be nice to cut those little costs to save for a cheap trip to Mexico, or buy that Alexander Wang bag you keep on eyeing?

20 comments:

  1. Thanks for these handy tip Pop c:
    My parents taught me how to deal
    with money and such as well.

    xx

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  2. these are great tips :P I follow most of them. I'd love a house tour of your home!

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  3. Love this! And you have no idea how relevant this post is to me and where i'm at in my life right now. Back from travelling, broke and ready for a new era in my life. I like to think of myself as rather money-savvy, but this has given me some food for though! Thank you for that :D

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  4. Awesome post, and so many points well made. I'm sure many will find these tips helpful, as it might be a pain to some to try and figure these out on their own. I love to see how very intelligent you are (not that I had any doubt before) since some pretty girls try to hide that quality about themselves. ♥

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  5. I loved this article to the core. This is exactly what I follow. When most of my friends get jealous of my prada sunglasses (or any such purchase) n think I have been bestowed my wealth my by parents, I tell then same things.

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  6. These are amazing tips. I'm bad with my money, but not horrible. I need to change my habits before it gets out of hand and I think this is a good place to start. Thanks

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  7. Perfect tips! Especially for a college student like myself.

    xo, Juliette Laura
    http://juliettelaura.blogspot.com
    http://www.etsy.com/shop/InfiniteStyleShop

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  8. I feel so close to you right now! :)
    This is great advice. Too many people do a magic trick with their money--make it disappear and then debt appears in it's place after the smoke clears. But I really shouldn't be commenting about my family.

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  9. awesome post and you really tell it like it is! they should have a class about this before entering college. i think a lot of people go wrong at that point. your parents did a great job in teaching you. congratulations on buying a second home. that is wonderful!
    http://www.averysweetblog.com/

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  10. You're one of the most hardworking, entrepreneurial people I know. Good for you for all the success you've achieved, and great advice here!

    Re. #5: I mentally pep talk myself out of purchases all the time.

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  11. I love your "how not to save's" - too funny! AND so true! I hate when people leave shitty tips and screw over other people!

    Nicole
    www.eleganceandclutter.com

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  12. This is such a useful post! Sometimes I need to budget more than I actually do and I like the idea of deciding beforehand what to spend money on :)

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  13. Good tips!! Some people should take them more in consideration. They seem obvious, but a lot of people forget them!!
    xx

    Eli

    www.acurlystyle.blogspot.com

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  14. Great tips! I agree that trendy fashion pieces go out of style really quick! :)

    xx Denysia Yu
    http://thatlaitgirl.com

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  15. Seriously great advise. I like how you put it too. Ha, too many times I fall for the trendy splurges and those are NOT smart! -_-

    The Dragonfruit Diaries

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  16. Really good advice babe! Congrats on your achievements, you can be really proud :D

    xx

    www.fashionjazz.co.za/blog

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  17. Those are some useful tips! There's a book at the bookstore, named 'how to save money'. The price was around 30 dollar. I think the first tip should have been: don't buy this book!

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  18. There are all great tips and I need to start applying them to myself asap.

    -Vogue&Heels
    www.vogueandheels.com

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  19. I like all the tips you put there.... I love travel....so use #4 tip a lot for my traveling :)

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  20. Amazing tips and I am glad you actually share them, so many people especially bloggers are cluttering their life with debts just to keep up with trends that will be gone in a night.
    I am a "do not taking any student loan at all" there are so many way to go buy and study without owing a fortune.
    Great tips.

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