Relationships and Finances… part 2

In the last post, I said communication was an important key to having a successful relationship with friends, family, and any type of romantic relationship. In this post, I will be talking about managing money and your finances.

In the days of credit and debit cards and banks making up to $1 billion dollars in overdraft fees (May 27, 2015, CNN Money), it can be hard to manage money, set up a budget, and become debt free. According to the article, JP Morgan Chase, Wells Fargo, and Bank of America were the top three banks who made most of their money from overdraft fees. I use an online bank since December 2006 when I was a freshman at Cabrini College. I paid some overdraft fees when I was young to Capital One 360, but I learned how to manage my money better overtime. It is a life lesson, but we all work heard for our money so we shouldn’t have to pay a bank to use our money, correct? You can learn more about my bank here.

Even since I started working when I was 12 years old babysitting and making money at my jobs when I was 14 years old, my grandmom taught me the envelope method of budgeting. I really like this explanation that I found on Pinterest using the cash envelope method. My budgets have changed over the years from making sure I had enough money to buy the green to making sure I have enough money to pay my “grown up” bills.

Here is what I budget for:

  • Weekend: $50/weekend
  • Food: $20/paycheck
  • Gas: $20/paycheck
    • I need to have $219.97 in my bank account each month to cover medical, dental, vision, student loans, and cell phone. The number will grow once I move out of my house into my own pace. I use a credit card to pay these bills that I pay off monthly, but still earn rewards dollars and credits to Disney. I have the Disney Premier Visa credit card.
    • For weekend and food, I take $70 out at a local Wawa where I don’t have to pay any bank fees to put into the my envelopes. Once the money is gone from the envelope the fun is over. You have to wait until your next paycheck in order to buy food or take a day trip with your friends on your weekend budget. I use cash for these categories because like the old saying “cash is king”, cash can also help you stay on track of your money. I love paying in cash because I can earn change to put into my piggy bank each year. Ever week, I empty my coin purse to put into my piggy bank. Ever December, I deposit the coins into my Citadel savings account to save up for my next vacation. I like to go away for my birthday, so that’s where I get the money from.
    • For my car loan, which I pay around $375 to Citadel, I have a savings account that has about $400 in it each month to pay my car loan. It is automatically pulled out the 28th of each month to pay the loan. I also have a checking account there where I put my gas money, my car wash money, my state inspection money, and my state registration money in. I have to register my PA state tags each July and get it inspected each August. I plan ahead on these expenses to ensure I have enough money in the account to cover the expenses.
    • In terms of clothing, shoes, accessories, and anything else that needs to be budgeted for my suggestion is to plan ahead and save $10 or so more dollars each paycheck until you have enough to pay for the item. I have plenty of clothes, shoes, accessories, etc… but I do need snow boats. I’m going to start researching for good snow boats and start putting away money until I can afford them. My goal is to have enough money by November 7th.

I’m glad you read this post about relationships and finances, but I’m no way an expert on money. This is what works for me and I hope you use some of my suggestions to help you budget and get out of debt. I would love to hear about your budgeting skills! How do you budget money?


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