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I saved up a lot of money when I was working so that I could go to school and live off savings for 2 years. I'm going through them pretty quick. Apparently I'm really bad at budgeting, especially when I have no paycheck coming in, so it's not like I can say I can only spend this much until I get my next paycheck. I think I spend the most on food and alcohol and entertainment. I am close to cutting up my credit cards so I can stop using them and only pull some cash from my checking every now and then. It is tempting not to use cash because I get cashback on my credit cards. Any advice? I only have ten more months to suffer. The only sources of income I can think of for this year will be when tax time comes (last year I received about $2200 but I was working for half the year at the time) and when I see my mom . I'm going to start using Mint to be more in my face when I spend.
Are you bad at budgeting?
Or are you bad at not spending?
Two very different things.
If it is the second. Stop spending for anything except essentials. If you don't absolutely need it - don't buy it. That includes anything that is not a current bill, food, or water. Find a way to do all the other things you need to do, and when you have gotten a grip on your spending - then try to budget.
Is there a particular reason why you aren't working AND going to school like everybody else coming from "the bottom" has to do? You don't have the luxury to take 2 years off and only focus on school, you need to be working full-time and going to school full-time. Schedule your schooling around your work schedule using weekend courses, night-time courses, and/or online courses.
Stop spending. Stop alcohol. Stop entertainment. Buy only basic food, and cook for yourself from scratch. Pay your current bills, but don't buy anything new (except basic food) until you have money coming in again. When you have income, then you can budget.
Limit your alcohol consumption and entertainment spending. Money should be spent on the following, in order:
Rent
Utilities
Food
Transportation (car payment and/or insurance)
Gas
Household supplies
CC bills
Entertainment
If you don't have enough to do all of them, either get a job or don't pay something at the bottom of the list. Entertainment and alcohol are not necessities, so you can't afford to be spending all your money on them. Cut up the credit cards so you can't use them anymore and make minimum payments until you have an income again. If you feel that you absolutely must have a credit score as some on these boards erroneously insist, wait until you have a steady income before you try to build your credit.
Learn how to cook and how to shop frugally. You can't afford to eat out all the time, and you can't afford to buy brand name. If you're spending more than $80 a week on food for one person, you have a problem. Actually, $80 is generous. I feed a family of four healthily for about $100-$120 a week.
Check out budget101.com for some money saving tips.
I like the cash back but I think studies show that we spend more when we use them. Thus you are correct stop using the cards. I would not cut up as you might need one to rent a car or buy a plane ticket etc. If you can not just put them away then ask your parents to hold on to them.
Forget the drinks and entertainment.
I would put the cash for your spending into envelopes. Probably weekly. You then take the cash out of the envelope and pay.
I like the cash back but I think studies show that we spend more when we use them. Thus you are correct stop using the cards. I would not cut up as you might need one to rent a car or buy a plane ticket etc. If you can not just put them away then ask your parents to hold on to them.
Forget the drinks and entertainment.
I would put the cash for your spending into envelopes. Probably weekly. You then take the cash out of the envelope and pay.
A. You don't need a credit card to rent a car or buy a plane ticket. A debit card works just fine.
B. The OP has no income. There won't - or at least shouldn't be - any trips in the foreseeable future, and most definitely none that involve renting cars or buying plane tickets.
The envelope system is a good idea, and may help the OP to control spending.
I saved up a lot of money when I was working so that I could go to school and live off savings for 2 years. I'm going through them pretty quick. Apparently I'm really bad at budgeting, especially when I have no paycheck coming in, so it's not like I can say I can only spend this much until I get my next paycheck. I think I spend the most on food and alcohol and entertainment.
That's the problem right there. You THINK you know where your money's going, you don't actually KNOW what you're spending it on.
Sit down and take a look at where you're actually spending your money. (If you have online access to your credit card accounts, a lot of them will show you a handy chart that shows what categories each month's charges fall into. And of course all of them will give you an exact list of every charge made during each month.) Then write a monthly budget. Put rent, utilities, car expenses, etc. at the top, as these are essentials you can't change much. Then comes the essentials like clothes and groceries where you have more control over how much you spend (buying on sale, clipping coupons, etc. to reduce costs). Alcohol and entertainment come dead last on the list.
Then stick to that budget. If you find you need to put away your credit cards to avoid overspending, do so. Also consider picking up a part-time job to boost your monthly income a bit. Not only will it bring in more money, it will fill up some of that time you'd otherwise spend drinking in bars and participating in recreational shopping or expensive entertainment.
A. You don't need a credit card to rent a car or buy a plane ticket. A debit card works just fine.
B. The OP has no income. There won't - or at least shouldn't be - any trips in the foreseeable future, and most definitely none that involve renting cars or buying plane tickets.
The envelope system is a good idea, and may help the OP to control spending.
I like credit cards as opposed to debit cards because you have better protection from fraud. Yes a debit card will work but since he has credit cards and they are helping him establish his credit he should not cancel. He could cut up as he suggested and not cancel. I sometimes answer a little more than the posted wanted as others with similar problems may read the posts.
Trips and renting a car is a different story. If he is looking for a job at the end of his schooling he may need to travel to several cities and rent a car. At his job he may need to incur company expenses and get reimbursed latter. Thus he might need a credit card as he might not have the cash in his bank account to cover.
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. I'm going to start using Mint to be more in my face when I spend.
