• Cassidy

A Lesson in Personal Financing

This article will detail how I could have saved $4,800 last year by simply giving myself an allowance.

In 2018 I realized that I should have more money in my hands. I had ‘no idea’ where it was going of course. I convinced myself that I had good spending habits and that I never spent too much on food, accessories, shopping, or anything that I didn’t ‘need’.

Come to find out all of those spending categories were higher than they should be and I actually didn’t have good spending habits. The first year I created my budget analysis was 2019, and as I progressed through the year I found out I was sending WAY too much on going out to eat, clothing, going out with friends, and just miscellaneous things that I really didn’t need.

It was shocking to see how much I was spending. I really believed that I had good spending habits at that time, so it really sucked to be smacked with the reality that I was hemorrhaging around $600-700 a month simply on food and clothing. How it got that bad? I spent when I wanted, went out with friends when I wanted, and went shopping when I wanted to. Obviously what I wanted didn’t ask for permission from my bank account.

I sat myself down in March of 2019 and said to myself that I need to change. It was so easy to figure out; I didn’t need an app, or an accountant, I just needed to sit down at my laptop and dig into my accounts! It was wild to see my spending habits in excel, take a look!

If I had given myself a $50 allowance every week, enough for a cute shirt and some take-out, then that’s just $200 a month in food expenditures. That would have saved me $4,800 dollars that year…compared to my usual spending habits. This is my story of personal financing. This is a hard lesson that I learned.

It may not apply to you in this aspect, but I highly suggest sitting down with your banking accounts open, a calculator in hand, and the ability to fork yourself some financial accountability. It could save you more money than you think! I sure didn’t think I would save that much, but the numbers are true!

All it took was some hard truth and a passion to save my money. I wanted to know where it was going, why, and how to stop it!! Now that I realized where my biggest spending category was, I tried to start hedging it down. Some months I succeeded, some months not so much. But 2021 is a new year, and I can’t wait to save that money!

Hopefully this article guides you towards starting your own budget, and saving some money! Have an awesome day you all! By the way, that purple line is my SAVINGS!

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