I recently went on a vacation to Europe. It was a great trip. We were there for about a month and traveled to seven countries. It was an absolute once in a lifetime trip (unless I go again in a couple years!). While I was having all that fun there was one small issue. Money! As fun as it was, it was also pretty expensive. So, how do you rebuild your bank account after a massive spend fest (like going on an extended vacation)?
There are definitely a lot of different ways to rebuild your savings account. We have already talked about planning and sticking to a budget and limiting the number of times you go out to eat. Those are both good ways to stay within your allotted budget amount, but what about saving an excess amount than usual? My answer to this seems pretty obvious, but has worked for me so far in my current rebuilding endeavors.
So, the solution? Cut out the entertainment and miscellaneous portions of the budget (or at least cut them down). Those categories are definitely important for regular spending. If you never have money allotted to both of those you will still end up spending money for them, but because you haven’t decided on a limit, you’ll overspend. Trust me-I know from experience that it will happen. However, it is possible, and smart, to cut them out or down for a couple of months while trying to rebuild your savings.
I just got my first paycheck since I’ve been back from my trip. A friend of mine asked if I went and bought anything-as a kind of celebration. I laughed and said no. I think a lot of people do that, however. They want to reward themselves with new clothes or a movie or books, when really, wouldn’t a good reward be to KEEP your money?! I think so. Reward your bank account. Put extra money in for a couple of months and get a good cushion. There are always bills to pay and groceries to buy, but you can cut out the less important things-like going to the movies or to a concert-for a couple of months and make sure that you have a comfortable amount in your savings so that if an emergency should arise or you need a little extra cash for some other reason, you’ll at least be financially prepared.
I take from life. And because this is my blog and i can write whatever i want, I’m going to share a bit of my own personal financial life. I’m currently in grad school, and lets just say it’s not cheap. I have discovered, while looking back at previous months, that my biggest spending category is food. I eat out WAY too much and spend way to much on food that I don’t need (like ice cream). Why is this? Mostly because I’m lazy and don’t want to take the time to make dinner because I feel like I have so many other things to do. I made a new goal, however, to only eat out twice a week. That includes lunch, ice cream, dinner, snacks, whatever.
Another idea is to SHARE when you go out to eat. The biggest problem with American’s diets today is portion size anyway. We eat way too much. Even if we’re full we feel like we have to eat everything on our plates because: 1) it’s so good, and (2) it costs money! Sharing dinner is a great way to save money and to lose weight! It’s a double threat way to live. That’s my new epiphany on how to save a little more money each month. It may be obvious to some, but it’s the execution that really matters.
Again with goals. Set a goal on how often (of not often) you’re going to eat out per week and just wait and see how big of a difference it can make.
When I watch my favorite tv show I inevitable have to watch the commercials too (I don’t have tivo). About 50 percent of the commercials I end up watching are “Get out of debt!” ads. Everyone is trying to help us get out of debt. Well, I have special remedy that will cost you absolutely nothing! Don’t get IN debt! That’s the answer.
Publilius Syrus said, “Debt is the slavery of the free.” Today, unfortunately, debt is rampant in our country. According to one study, about 43% of American families spend more than they earn each year, average households carry about $8,000 in credit card debt, and personal bankruptcies have doubled in the past decade. Those are some pretty scary statistics.
All too many of us enter into debt agreements for silly and selfish reasons. Whether it’s credit card debt due to absurd amounts of shopping or buying a house that we can’t afford and is too big for our needs anyway. A very simple and evident way to keep from having huge amounts of debt is to not get into that debt in the first place. Multiple credit cards, spending money we don’t have on “toys” and other unnecessary purchases can lead to large debt very quickly.
There are obviously some good reasons to get into debt. I can see three that are legitimate: (1) buying a house (a house you can afford!), (2) buying a car, and (3) education. Those three things are worthy reasons for borrowing. There are also some situations that we don’t anticipate or expect that may require money that we don’t have right on hand. Emergencies can’t be predicted but they can be planned for. Getting money matters in order and knowing where money is going is a big part of being prepared. When irresponsible debts are created a major factor of money control is lost.
An American Abolitionist named Wendell Phillips said, “Debt is the fatal disease of republics, the first thing and the mightiest to undermine governments and corrupt the people.” Although I do feel that there are some occasions where going into a small amount of debt is reasonable and in some cases necessary, I agree that if our debts as individuals aren’t kept in order and under control, debt can and will become a “fatal disease”.