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Friday, November 15, 2013

College Girl and Her Money

About a year ago my friend won tickets to a special premiere of the new 007 movie. The host of the event told everyone to check under their seat, low and behold mine had an envelope underneath it. I won a book called Davey Ramsey's Complete Guide to Money. My first reaction was that I didn't need this lame book and that I wish I could have won all the other cool prizes. Around the same time the same friend got the chance to see a financial advisor, this opened my eyes.
All of this started my thinking process, my friend was older than I was and was spending like she made a lot more money than she really made and paid the minimum on all her credit cards. She was a slave to being a consumer and material possessions. This got me to start reading the book and it opened up my mind of all the possibilities and inspired me to learn more.
I wanted to gain financial independence early in life. I was now motivated to control where my money goes and not let it control me. Money is a large stress factor in most people's lives and marriages. I think why have that stress if you can greatly remove or cut it?
I made my first budget after reading that book, I started looking up other books and resources to read, and now I'm hooked on becoming financially free and independent. I still have a long way to go with a car loan, student loans, and trying to build savings. After creating my first budget I realized how hard it was for me to stick to it and how I too was a slave to my money and possessions. Here I was reading a book about how all these people made huge sacrifices to pay down their debt and I didn't want to give up DVR.
There are so many simple changes you can make in your life to gain control. What Americans don't do is live beneath their means, which is how most self-made millionaires become millionaires. I have learned how to sacrifice a lot and only live with what I need. Every once in a while that devil on my shoulder gets me to give in but I have come a long way. Some things you can do to help cut budgets in your life would first be calculate how much money you spend a month on things you don't need. For example as a college student I shouldn't spend $100 a month on eating out and buying groceries of the same amount. Now I hardly ever eat out even though I love it more than anything, I pack my lunch and cook most meals at home which ends up saving me a lot of money. Cutting grocery costs by making a list and sticking to a list, USE COUPONS, and compare prices from other stores is what I do to cut my grocery bill.
Other simple ways would be to put 20% of your paycheck in savings. Also look at how much money you are putting towards bills, I read once a college woman who got flip phone without data and fancy things and her cell phone bill was $9 a month! While that's not something I think I could do, sometimes you have to cut those things out to get by. The important thing is what I have already stressed, live beneath your means and don't be a slaver to consumerism. Look at what you're spending every month, and resist the temptation to grab lunch with the girls, and if you can't miss out than limit yourself to a "eating out budget".
Most important do your research before buying anything, including loans or a pair of shoes. Be smart about your purchases and don't buy things you don't absolutely need. I have a plan of being debt free in two years, they might be a "boring" two years but in two years hopefully I will be out of debt and ready to start a financially free life.

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