Common Money Mistakes

Oops, you did it again.

Mistakes happen, that's a fact of life. Adulting means you have to fix them. But how? Here's how:

Money Mistake: You have no idea where your money goes.

How do you fix it? Make a budget! It is the most basic thing you can do and will open your eyes to all the ways you are pissing money away. Check out my post on budgeting basics HERE! If you get through your transactions and see that you've spend $100 this month on drinks out with friends, but $0 on paying down your credit card debt then it will become really real. Invite your friends over for some BYOB and Netflix then immediately make a payment to your credit card. You'll be glad you did!

Money Mistake: Not having an emergency fund.

How do you fix it? Save a chunk of money! $500-$1000 is usually enough to save your butt if something unexpected happens. Aim to have 6 months of expenses saved in case of a dire emergency. Start saving and don't stop until you hit your goal. How much can you save? I don't know, but you should. Look at your budget and see what you can trim to save a bit of cash, then stash it away for a rainy day.

Money Mistake: Spending on things you could get for free.

How do you fix it? Go to the library! Music, books, magazines, printing services, classes, book clubs, arts programs, volunteer opportunities, and snacks all await you at your local library. Get on their website and poke around, you're sure to find something you like. Attend a clothing swap (or organize one with friends)! Borrow a tool from a friend instead of buying one. Shop your closet. Go for a walk in the park instead of the mall. Go to the museum on a free day. Do something besides eating out at restaurants when you go out with friends. There are lots of free options, and if you're broke you need to find them.

Your mistakes don't define you, how you rebound does. Who do you want to be? Pick a Britney, bitch.

How Do You Money? Veronica

How Do You Money? Is a series where I talk with real people about their money and how they manage it. Everyone does things a bit differently and there is much to learn from others.

Veronica (not her real name) is a married registered nurse with one child. Here's a bit about her money history:

Credit Score Basics

Starting out in my adult life I knew very little about credit and how it worked. But hooooo boy did I learn fast. If you are in the dark about credit scores, here are the basics: 

Building an Emergency Fund

When struggling to get a grip on your finances it is SO SO important to set up an emergency fund. The amount of money that's right for you will depend on your situation, but typically enough money to cover three months of expenses will do. You'll also need a smaller fund to keep the little emergencies away. This smaller fund is how you'll stop using your credit cards and the bigger fund will save your ass in a dire situation. 

Your emergency funds will keep your sticky little hands off the credit cards while you pay them down. 

So how do you save up an emergency fund (or two)? 

Debt Basics

“You want a hot body? You want a Bugatti? You want a Maserati? You better work bitch.” – Britney Spears, “Work Bitch”

In debt? You’re not alone. The average household has about $15,000 in debt – not including mortgages and student loans. But! Just because everyone is doing it does not make it cool. Paying off your credit card debt takes hard work and resolve. If it were easy, everyone would do it. But you’re not everyone – and you’re gonna do it! But how?

My Story

“Difficult takes a day, impossible takes a week.” Jay-Z, “Diamonds from the Sierra Leone”

So how do I know so much about money? Trial by fire/life experience.