Foundations of Finance

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.