Happy Spring everyone! Even though things are crazy right now, lets all appreciate that the winter cold is over and its a new season for blooming flowers and greenery everywhere!
This post has been one of my most highly requested and now that I am stuck at home for a while its the perfect time to start writing it all out for you!
My budgeting tips are:
1. Get Mint, its a budgeting website/app that helps you see where all your money is going by creating categories and lets you place limits on the categories so you can see where you go over and where you have room to rework your limits. You can also add all your bank accounts, investments, loans, mortgages, etc. so you get a wide view and individual view to your finances, its amazing, can’t recommend enough!
2. Get a credit card. I know scary right? But in all seriousness get a credit card, start with Capitol One Journey, a student card, if you’re new to them, or find one that gives you an incentive you will get value in. I upgraded from the Journey to the Venture Card when I graduated college to start accumulating miles since I travel often.
I never reach my max limit and I always pay on time. This is the key to building good credit and then when we graduate, we have credit to buy or lease our first cars and houses!
3. Separate your money into different accounts. And don’t touch it once you do. I took out a Suntrust banking account when I got my loans because the deal was if I used my Suntrust checking account to pay my monthly loan payment I got a .25% reduction on my principal. So I now have, in addition to my Bank of America checking and savings accounts, a Suntrust checking and savings account. My loan gets disbursed once a semester to my Suntrust checking account and I divide it up between what goes to my Suntrust savings, my Bank of America Savings and what stays in the checking account.
I have an auto transfer of $300 2x a month from my BoA savings to my BoA checking that I use to pay off my Venture Card, which I use for all expenses, like groceries, gas, travel, online purchases, going out/entertainment, etc.
My BoA checking is used simply for purchases $10 or less, as there’s usually less than $100 in it. I get a $30 weekly allowance from my parents and whatever has accumulated is what stays in there after I have paid off my credit card with the transfer from my BoA savings account.
In my BoA savings account I also have money I saved from working full-time last year for 6 months post graduation, and this money does not get touched on a regular basis. It is both my emergency fund and my travel money. I try to keep as much in it as possible and only reach in it when I need to cover expenses, which is rare.
My Suntrust checking is used for paying rent and utilities only, my greatest expense, which helps me get that .25% reduction on my principal.
My Suntrust savings account is just bucket for extra money I borrowed, for if I need it to cover rent or anything crazy happens during school. So far I have yet to touch it and I don’t plan to anytime soon.
4. Pay your loan minimum payment on time every month.
5. With any disposable income you have look at investments. Right now may or may not be the best time to buy stocks but if there’s an industry you’re interested in look at how its doing in the market, its potential for growth and see what companies are the most interesting to you. A little goes a long way, and I see investments as a way to cut a chunk of my principal of my loans down when I graduate. And also to help me save for my first car and house purchases. As well as maybe a nice bag to treat myself for passing the bar.
I want to note that I have not stopped living my life and doing things I enjoy to save money, but I am more conscious of what I can spend and if I go crazy one week/month I am more frugal the next one. I do not let it trickle so I don’t go into debt.
I also live within my means and try to eat at home/cook as much as possible and I am also not a heavy drinker. I get groceries 2x a month and do a Costco run every 5-6 weeks.
I also get my nails and eyebrows done every 3-4 weeks and don’t dye my hair regularly, and style it myself. I self tan at home and only repurchase it and makeup when necessary. I also don’t stop from trying new products that come out in beauty and skincare if I can afford to buy them, and rarely buy hair products as I know what works for me.
As for fashion, I typically do hauls in the summer and fall and that keeps me from making many small purchases unless its something special for an occasion or treating myself, usually with parental approval, or my mother pays.
They don’t require me getting their approval first but we regularly go over my budget and they also sometimes purchase things for me when they can to help me out, although most of my expenses are paid for by me, with the exception of health and car insurance and my cellphone bill.
I am lucky to have their help and guidance and while I have expensive taste I know when to reel it in and they give me stern talking tos when I don’t.
My biggest tip for law school budgeting is be conscience of where you’re spending money and how much. Also limit extra expenditures that are not necessities, this is the one I struggle with the most and am still working on but I always make sure to pay down my card every month and not let my card go beyond a certain limit, lower than my max credit limit.
This is the way I do it, not everyone is the same, others may not spend so much on beauty and fashion as I do, and rather spend it on other things. But I know that having tools to help me measure my expenses has helped me a lot and I try to not go crazy, too much lol
Hope this helped, thanks for reading!
xo Kayla