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My parents have given me a ton of great advice that they collected through their many life experiences, most of which I disregarded while being a know-it-all teenager. Finally, years later, I can admit how right they were. Especially when it comes to personal finance.
Their Advice
The key to managing your money is very simple in theory and very difficult in reality. All you have to do is actually sit down and budget for everything in your life, and then (this is the hard part) actually follow that budget. When we say budget for everything, we mean EVERYTHING. Obviously, you need to have all your bills in order, but you also have to know who you are as a person and what else you need to account for. If you know that you’re going to crave a pizza at least once a week, budget for it. If you know you’re going to go to the bars, remember to budget for late night food and the cab ride home. In your case, you should have a fund set aside solely for yearly speeding tickets until you stop driving like an asshole.
Don’t overlook budgeting for unplanned expenses. That can be anything from your transmission blowing or for a spontaneous weekend trip. You’re not a robot, and you deserve to have some fun, or buy yourself something nice after a hard week. The important thing is to admit that you will spend that money, and work it into the budget. Also, for the love of god, don’t get a credit card. You have no need for it and you’re not responsible enough to have it. We love you, but we’re not bailing you out when you rack up thousands of dollars in debt. You’ve been warned.
Ways I Should Have Listened
Well, I shouldn’t have gotten a credit card and racked up thousands of dollars in debt. Mom and Dad, if you’re reading this, I did actually think about your advice, but dammit, I was only going to turn 21 once and my boys and I wanted to stay in the Bellagio Suite in Vegas. Should I have picked a group of friends that wouldn’t destroy a hotel room that had my card on file? Perhaps. But that’s a whole other piece of your advice I didn’t follow.
Other things I shouldn’t have spent money on include (but are not limited to): 22-inch black rims for my Volvo, a brand new snowboard while California was in a drought, eight pairs of Nike Frees that have logged five total running miles between them, and countless drinks for girls that were not interested in me. It was probably not financially sound for me to once again drop several grand on a Vegas trip for my 22nd birthday, but at least I won back a few hundred of it on roulette. Gotta spend money to make money right? I also should have listened when you told me to sell my car, as it was costing me more than it was worth. The five speeding tickets and thirty parking tickets I’ve had to pay off in the last eight years has definitely exceeded the value of a 2001 Toyota Camry with three missing hubcaps.
How I’ve Started Listening
I’m not going to lie, the easiest way to learn how to budget and decide what necessary expenses are was having to be financially autonomous. My parents (who are saints) helped me with rent and living expenses throughout my four-and-a-half years in college, while I used my paychecks on the important things like booze and costumes for theme parties. On the day of my graduation, my father graciously gave me a check for one month’s rent, and told me I had thirty days to “get a full-time job, move home, or start working the corner.” The man is a modern day Robert Frost.
I was fortunate enough to find a job within a few weeks and immediately (after blowing my first few paychecks on stupid shit), sat down with my bills and an excel spreadsheet and hammered out a budget. I haven’t been perfect, but I have been getting better at following it. I’ve changed jobs and homes several times since then, and I’ve been able to adjust my budget accordingly every time. Do I still go over budget? The $38 I spent at Chick-Fil-A this weekend says yes, but I’m getting better. Do I have some expenses that Mint.com deems as “unnecessary?” Maybe, but I’d rather live in cardboard box than in a world where I have to listen to Spotify’s obnoxious commercials every thirty minutes. Some things my parents wouldn’t understand, but for most of it – they were right. .
Image via Shutterstock
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Nick Arcadia
The opposite of a life coach. Email or DM me if you want some bad advice: nickarcadiapgp@gmail.com
@noampao
noamio
Key areas not to waste money on:
1) Vehicles
2) Bars
3) Guns
Do as I say not as I do.
username checks out.
Wardrobe
at home alcohol
trips back to the alma mater
If you can use them responsibly (big if), credit cards can be a way to get free money. Look into ones with awesome sign up bonuses and perks and you can literally save thousands of dollars on travel or cash back. The catch is to pay the balance off fully each month so that you don’t incur any interest.
Not hard, just don’t spend more than you’ll be able to pay in a month.
I agree that it seems straightforward to you and me, but it’s not for a lot of people, hence the insane amount of credit card debt in the US.
Yup, been to a bachelor party in Vegas and a wedding in Minnesota thanks to free points I was given by my Southwest Credit Card. (Got 40,000 points just for signing up and spending 3K in three months. That was easy.) Oh and when I use the free miles, they comp me those used miles in new free points.
Good plan. There’s a way to combine two Southwest 50,000K sign up bonuses to get the lucrative Companion pass.
Let me know if anyone wants advice for how to maximize these points. I used my Amex points to stay 8 nights at Hiltons for an average price of $15 a night on my upcoming South America trip. You can’t even find decent hostels that cheap.
My brother did that when he went to France to propose to his then girlfriend. They stayed in a $2,000 a night room the night of the proposal. I imagine it was like when Harry and Lloyd make it to Asspen, but more romantic.
I follow the points guys on Twitter and he seems to have some pretty good info. I did credit card churning for a while and that was awesome but pretty annoying having to constantly keep up with it. I just bought my first flight in 3 years though so maybe I should hit that churning back up.
If anybody needs help budgeting how to pay off their student loans for the least amount of money possible, holler.
Sounds like somebody has an article to submit.
Excel is hard to explain in writing. This could be a 15 minute video tutorial or template.
sup
Alright, I can’t figure out how to make this work on Google Sheets because I’m technologically inept/the world is constantly conspiring against me. However, feel free to email me and I’ll do my best to send anyone the actual document I used with instructions or help if you have questions.
redsox_fanman19@yahoo.com (No, that’s not my real email and yes, I know first email addresses are embarrassing).
So… I’m serious. Can I get that spreadsheet?
Literally made an account just to holler
email info my dude, I’ll throw some cash your way for advice/help.
It’s an Excel sheet, shit is free. I am a man of the people.
We need this
Host this puppy on google docs.
On one hand, I shouldn’t have racked up debt on a credit card, but on the other hand, I had a kick-ass final semester in college #NoRagrets.
Amazon prime is the mortal enemy of budgets
What should I do when my wife wants the new $300 Dyson hairdryer? Asking for me, and hoping for a column from Will on this / incorporate into TGDAG.
Just pay your CC balence every Tuesday during your morning coffee at work (NOT Monday, no one needs that weekend bar tab reality check on Monday)
Soybean futures, it’s where its at.
The credit card bit, while true, is not good advice. The really crappy part about the credit game is that you have to have it, and you have to make lenders consider you trustworthy. No credit card? No credit. Your rent, cable bill, and water bill don’t count towards your credit. Only auto loans, credit cards, and mortgages do. And one day when you eventually want to own your own piece of land, you’ll want to have an immaculate score to get a favorable interest rate. Even a credit card with an extremely low limit is fine. Just get one and use it sparingly, pay it off every month and your credit score will shine.
Also, if your bank has any type of online financial tools, such as FinanceWorks, take advantage of that. Really, really valuable tools. Mint is also great.
I’m not the best at keeping a budget. I’ve tried. Not a big fan of mint either. The one thing I do do successfully is save like a mad woman. I’ve been putting away. 20% of every paycheck I earned since I was 18. Last year I started putting away an extra $50 from every paycheck to have “spending money” for a vacation, so I wouldn’t dip into my normal expense account. the vacation has come and gone but it’s nice to have that little account growing. $100 a month adds up quick and makes great fun money to use for a weekend trip. I also have 2 credit cards. One I don’t use often, but it was my first card and I keep it open to maintain a longer credit history. Mature cards are good for your credit score. I also have a travel rewards card that I have been using (and paying off monthly) to pay for my upcoming wedding and honeymoon. Already have over $500 in travel/airfare rewards. It will come in handy for all wedding weekends I have coming up next year.