I'm all for segregation!

Hey, this is an idea that has most definitely saved me the most money over the years. Any financial counselor will tell you that budgeting is all about tracking your expenses. Most college-age people I know don't even watch their money. Mostly because nobody cares to keep track of receipts (except for me... okay, so I'm a little O.C.D.). Well I've been putting this idea into practice for many years now and it's saved much frustration and helped me to watch where my money's going. (Back before I did this, there was many a time that I had said, "I just don't know where my paycheck has gone this week." Ever said that? That's a problem!)

I actually separate my bills and purchases into three different payment types: check, credit card,and cash/debit. Most people I know have debit (which I abhor) or just carry around cash all the time (too easy to get stolen and too available for compulsory spending). I have a checking account (which I never use debit on... debit works too much like expendable cash). Every cent I get goes into it. Paychecks, money from eBay, any time I get money I put it into checking, even if I know I'm gonna get cash out later anyways. This way I know what I can budget and I won't be so eager to spend free-floating cash.

I separate these into three areas because that way I know what I have to track and keep a close eye on and what I am able to budget. With checks, I will only pay regular bills, things that are expected every month and vary little. With credit cards I will by my big-ticket items with a variable budget. With cash I will get small-ticket items with a strict budget.

Checks are great to track finances because you get a monthly statement mailed to you, and, if you use the ledger (I highly recommend you do that, along with using carbons with your checks) you always know your bank account balance. To simplify things, I only use checks for monthly bills: cellphone, cable/internet, insurance, donations/giving, etc. These things do not normally change - they are expected and unavoidable (for the most part). A good idea (what I do) is to keep a spreadsheet of these expected bills and deduct them from your paycheck before spending on anything else. *Side Note: I usually buy gas with a credit card, even though it seems like a regular expense. Travel is a budgetable area so I put it on plastic.*

Now most of the time you hear that credit should be avoided at all costs. Ehh... yeah, most of the time that's probably the best idea to stay away from credit cards until you learn how to use them. Proper use of credit means: 1) Pay them off completely as soon as they come due. 2) Never buy anything with credit that you don't already have money in checking to cover. 3) Don't be so eager to use it on small-ticket items - that's what cash is for. I made a personal rule to never buy anything on credit card under $25.. anything over $25, you have to make conscious decisions on whether or not it's necessity - things like gas, groceries, school books, etc. 4) Track EVERYTHING you use a credit card on. For one thing, it's the safest thing to do to make sure nobody is using your credit card information, and also this is your greatest area to make decisions about budgeting. I'll talk more about that in a bit.

Cash is key. Just like a prepaid cellphone or cash card, it has a built-in turn-off feature. You can't spend more than you have, and shelling out the Washingtons one by one makes you do it a lot slower :). Make an effort to get cash out once a week (or every two weeks if you're good at budgeting), and don't get out any more; when you run out, you go without *I didn't mean for that to rhyme*. Back when I was working I would get out $100 every week. Now that I'm living on school loans that's gone down to $25 a week. (That's much easier for me to handle since I don't get fast food.) Cash is for the little purchases, like those late night trips to get toilet paper for the dorm. I never keep receipts for purchases made with cash because they're small (and usually frequent) and I've already budgeted myself for the week. If you end up with extra money at the end of the week, you could maybe give yourself less cash allowance next week and put the extra towards bills.

Now about budgeting the credit card... I try to keep plastic usage to a minimum and just use it when I'm buying a week's bill of groceries or apartment supplies, gas and other travel expenses, and anything else that's adjustable from week to week (month to month). What I do is spreadsheet my one credit card (you usually don't need more than one, so don't get more just to have more credit) and catagorize things like travel, groceries, books and cd's, and other variable catagories. At the end of the month I am able to see how much more I've spent than the previous month and I can see clearly which areas I can be more frugal in.

By keeping some kind of bank account, running all of your money through that and segregating your payment options, then budgeting becomes much more manageable. I guarantee you'll be able to retain much more of your paycheck this way, or at least become more educated about where you're over-spending.

What I learned from my first year of "real college"....

Hey, I'm Sunny, I talked Phillip into letting me post on his blog so here's my first attempt!

Last year was the first time I had moved away to go to school (I had spent 2 years at our local community college before that). I put about 500 miles between myself and everything I've ever known, it was most definitely a learning experience! There are definitely some perks to going to a traditional 4-year school and living on campus. Here are some tips that I've learned:

Buy a meal plan!
Many schools (including mine) require students to buy a meal plan, at first I thought it was completely ridiculous that they forced us to spend $1500/semester (that's for 14 meals/week) on icky cafeteria food. Then I realized I was actually saving money, if I had my own kitchen I would have to furnish all of my cooking hardware and food. Plus I'd have to wash my own dishes, and possibly argue with my roomies about who's turn it is to clean up the fuzzy stuff growing in the fridge. With the meal plan you're limited to what the cafeteria offers, some of the stuff is a little sketchy (especially on the weekends when most people go home so they just give us whatever is left over) but you always have the option of getting cereal or toast! It also cut down on my fast-food consumption considerably, I probably went out to eat less than 20 times the entire school year. Some downsides are: limitations on variety, only having set hours of operation (we have another food place on campus which is open until 11pm most nights)

Get a work study job!
Work study jobs are offered on most campuses and they're funded either through the school or through the government. It is usually based on financial need, I work in an office on campus for about 10 hours a week, and make minimum wage. I know it doesn't sound like a lot and I was very skeptical at first that it was even going to be worth it, but since the job is located on campus if you have long breaks between classes you can fit it right there, the managers are generally very flexible with hours since they know school is your first priority. The downsides are you have a certain amount you can earn and if you work too many hours and run out of funds then you're out of luck. You also only get paid once a month so if you have lots of bills this may not be a good option for you, but it's a great way to earn some extra cash for trips home or unexpected expenses.

If you move far away from home, get a checking account!!
At home I bank with a local company, if you move out of their area it's kind of a pain to cash checks, or deposit checks (sending them home to mom didn't work very well since my banks was out of the way for her to deposit them so I'd have to wait awhile to have access to the moneys). Most free checking accounts only require a $100 opening deposit so I'm going to save my last check from my summer job and just deposit it into a new account. This will also separate the money I've previously earned and school loan money, and the stuff I'll be earning while I'm at school. Plus one of our local banks has an ATM on campus so no more fees for using it and not being a member there! (Those $3 fees can add up)

If you're sharing a bathroom/kitchen make a cleaning schedule!!
Last year I shared a bathroom with 3 other females. We had no kitchen so the bathroom kind of doubled as one (icky right?). One roommate didn't really ever clean up after herself so we made a cleaning schedule, we rotated each week and wrote our names down along with the date it was cleaned (with 4 girls they get gross pretty quickly) that way we knew it got cleaned at least once a week. We also rotated on who purchased the toilet paper. It seems really juvenile but it was the only way we could do this without bickering so I fully recommend it.

Splurge sometimes!
I learned that 1 12oz bottle of shampoo/conditioner will last me about 3 months if I wash my hair every other day. So why not go ahead and get something you like instead of trying to save money with the cheap stuff that no one really likes anyway. Same goes for laundry detergent. I bought the cheapest stuff I could find and it was so thin/watered down that I ended up using more than if I would have bought the more expensive stuff. Plus if you buy a really big bottle because it's on sale, be prepared to carry it up 4 flights of stairs when the elevator breaks while you're loading the washer :)

Rent a storage unit for the summer!
One of my friends also lives out of state and we didn't want to lug everything back home so we went in half on a storage unit and it was well worth it. It was only $25/month plus a $20 deposit. We ended up spending about $75/each to store our things for the summer and it saved the hassle of trying to load everything up and haul it 500 miles! (Plus with my tiny car it would have been a tight squeeze!

Traveling Home

An update. I'm coming home for my brother's wedding. I live 360 miles from my school, and gas (as you know) is killer. Before I left home I researched transit options to see how often I could come home to visit the fam and girlfriend and all. (Since I get about 360 miles on a tank of gas I figure the trip by Jeep would be $75 one way - yes, my jeep is a beast.) Flying is actually pretty cheap these days (and quick - I went from St. Louis to Cincinnati to Knoxville, TN in like 1.5 hours), but you gotta make sure you get pretty common flights, which means metro to metro; if you go from a lesser-known airport to somewhere in the country (or visa versa) it gets pricey.

Actually, I figured taking the 5 and a half hour trip home would be cheapest by train. I found round trips for $46 ($23 one way), again, from metro to metro (Chicago Union Station to St. Louis). I live in the suburbs of Chicago - I'm about 45 mins away so I would have to find a way to get into the city, and parking around Union Station is expensive for 5 days. Never fret! I found a tram that goes from a station 4 miles north of my apartment that actually takes me straight to Union Station for only $4.75.. yay! (A lot of stress goes into getting travel arrangements, but its very worth it to do your research.) So $55 for a train trip home instead of $150 in gas (plus a sore butt; remember trains usually let you walk around, and they have a snack car).

Now all I gotta do is figure out how to get from Chicago to Knoxville, TN cheaply to see my girlfriend in college.

What's the farthest you have to travel to get home from school?

Holy Take-Out, Batman!

Well here I've been at college for nigh on one week. I've made it a goal to not eat fast food. Now this accomplishes a few things: it's healthier - I don't think I have to convince anyone of this fact.. just rent 'Super Size Me'; second, it saves gas to not have to cruise town to find some greasy chinese take-out place; but most importantly.. fast food gets too darn expensive. The alternative: cook for yourself. There really is a large difference in price between making your own mac and cheese and getting it a'la cart anywhere else.

When I was working at home I would get fast food once a day as well as pop a couple sodas out of the vending machine, daily. Now, I know that Taco Bell's value menue seems pretty cheap, but just add it up. On average I spent about $5 a day on fast food, plus $2 on vending machines (not to mention gas to get accross town during lunch time). That's $7 a day minimum, $140 a month. Let's say after gas that I was spending about $170 for my daily habit. **And don't think you don't spend that much on your habit... try checking your debit card transactions the past few months!

For the next week try buying 12-pack cans of soda (actually the healthiest - and cheapest - option is to filter and bottle your own water) instead of spending $1.25 on vending machine bottles. At $4 for a 12-pack of Mt. Dew, that's $.33 a can. (Even 2 cans, 24 oz. equals $.67! The 50 cent difference would save you $10 a month, at least.) And like I mentioned, bottling your own water (there's no end to the amounts of data that shows the benefits of drinking water) could cost you almost nothing but the 45 seconds it takes to fill up in the morning.

-----------------

I actually have always dreamed of getting my own show on Food Network showing great, easy & cheap recipes for young families and college students. Fact is, no mater what you cook (seafood, steak, desserts definately) it's always gonna be cheaper than a restaurant... at least 75% cheaper, I guarantee it. When I have time between classes I'll post some recipes I've made for me and my roommates. Also, since I'm a nerd and like to waste time making wierd financial spreadsheets, I also started calculating the costs (to the nickel) of all the ingredients. It'd blow your mind (the cost difference, not my nerdiness).

I guess to be more fair and balanced, I should say that most people will tell you cooking for one or two people is harder than cooking for your family (which I've experienced moving away from my family and having to take care of myself). Harder, not impossible. Even if you have to waste food it's still cheaper. Learn the art of packing left-overs. Tupperware is cheap.. use it! Invite friends over. In fact cooking food is a great way to make friends. Heck, you could charge them 2 bucks a head and probably make profit.

Anyways, I'll post recipe's later. That's all for now.

Textbooks

One thing I remember from my last time in college is that textbooks, learning kits and lab fees can get pretty crazy. This may be an obvious thing for many of you, but did you know that you aren't required to buy everything from your college's bookstore? And unless one of your proffessors publish their own course textbooks there's a good chance you can find textbooks, even course materials kits, from other outlets, many online.

My girlfriend just got her courselist last week with about $400-500 worth of textbooks and recommended reading. Since she has till the end of August before her classes start she decided to shop around. In 20 minutes she found almost all of the books on her required texts list and paid less than $75. Never underestimate the power of search engines to find people in the furthest corners of the continent with a spare Sub-Saharan Botany text that won't sell in their mother's yard sale.

Now for me, I won't get my courselist until the day before classes start, so I'm out of luck when it comes to ordering books online in time for class. Actually, most school bookstores have a buy-back program, they even have a return policy (just in case you got a book you didn't need or decided to drop a course) that you can get a full or majority cost refund within a certain time-frame. Make sure when you get your books from your school's website or campus store that you ask about their return policy, and as soon as you get that booklist hit the web and look for sellers who can ship quickly.

Discount textbooks is big industry and online stores are all about competition. Amazon.com has a large selection and most of the time they have individual sellers who may have used books in good condition (I've seen books go as low as $.99 with $5 shipping). Also look for other required materials and learning kits online. I once took a course for A+ Computer Repair certification (what a waste of money that class was) that I had to buy a kit for, which included a textbook, technical reference books, an instruction CD and a small computer repair kit. I bought the entire kit from my schools Media center, but I'm sure the package set would have been at least half the cost anywhere else.

And don't worry about breaking any rules by sneaking into class with a book you got off eBay. I've actually never heard of any schools requiring you to only purchase course materials from their own sources. Though, I must say, sometimes it is beneficial to look in your schools catalog for student discounts on software and bibliography materials.

Here's the Intro

Hi, I'm Phil, I'm 23 and I'll be starting college two weeks from now. (Though I've already completed two years of community college and recieved my AA I will still be concidered a Freshman at the school I'll be attending.)

This Friday will be my last day working for money and I currently have no plans to get a job during school. Though I'm not too worried about how to survive on limited savings and Sallie Mae loans. I have some good ideas, though - things I've put into practice this past couple years of being a single working adult - on how to stretch a twenty-dollar bill and just saving money in general.

I've never had my own blog before outside of facebook and I thought it would be fun to make one to share some of my humorous-yet-informative tips on penny pinching while still enjoying the best things in life. Maybe we can get some good discussion and I can learn a thing or two from down-and-out college students living off milk money or young families trying to make car payments while working for tips at Applebees.

I tend to write very protracted emails and posts so I will attempt to stick to short themes in my posts to leave room for good discussion. You don't have to be a member to post so leave funny stories, quirky habits (bad or good), and good money saving ideas. That's all for now.