I don’t think anyone is trying to sabotage themselves. I think most people want to live comfortably and enjoy what they do. However, many people aren’t happy with where their finances are at currently. Sometimes, though, we’re our own worst enemy when it comes to our finances.

How Can I Save Money?!

It can be incredibly frustrating to see your checking account balance is close to zero as you wait for your next paycheck. You work hard and you want to be able to enjoy your money.

If you can make a small effort to change at least a few of your money habits, then you can not only keep from living paycheck to paycheck, but you can also increase your net worth.

Financial Management Skills

Here are some of the financial management skills you need to have to build your net worth and how you can overcome hurdles.

Keep Spending Under Control

Have you told yourself that you would track your spending and get it under control? For many people it’s a goal still unfulfilled. They worry that they have to go around and write down every single penny that they spend.  It doesn’t have to be that way.

Tracking your spending for a month or even this past year can be done in about 15 minutes. Don’t believe me? Try Mint. Link your bank account securely and within 5 minutes you can have an analysis of your spending. Compare your spending month to month or  last year – Mint allows you to see where you’re doing well at and where you’re behind.

When you know where you money is going to you have a clear idea of what needs to be fixed.

Have a Realistic Budget

How many times have you said you’re going to get your budget together? How many times have you’ve broken your budget? Most times we build these perfect budgets that include ridiculous and unrealistioc goals like saving 30% of our income when we’re struggling right now to keep our lunch spending in check. Instead of setting yourself for failure, make it easy to win.

If you already tracked your spending with Mint, you can use their goal feature and have them email you when you’re reaching your spending limit on something, like eating out. It’s great because it’s automated, so you don’t have to stress out.

By the way when you’re setting your goals, my advice would be to cut back on increments. If you spend $200 eating out each month, then set next month for $150, not$25. You’re more likely to succeed.

Save Money for an Emergency Fund

Stuff happens. No matter who you are, bumps are on the road of life and having a bit of savings can keep it a bump and not a roadblock.

Whether you’re making a lot of money or not, set aside a portion of your paycheck for savings. Make it an automated transfer and make it happen right after your paycheck get deposited. You’ll be grateful later when you have money to cover replacing your water pump.

Psychology of Money

Learning to avoid common mistakes when it comes to finances can put you ahead of your peers.  I used Mint as an example since I’m a fan of theirs, but you should feel free to use what works for you.

Curious to see what affects your money making (or losing) decisions? Check other posts in the Money & Psychology series:

• Choosing Friends to Build Your Net Worth
• Decisions, Decisions – Making a Big Purchase
• Is Saving Really About Motivation?
• Ways We Spend Money Without Evening Knowing It (and How to Fix It)
• Barriers That Prevent us From Saving Money
• Dealing with the Stress of Financial Issues
• Getting Your Finances Ready for a New Job

How are you working through this economic mess? What tips can you share?

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Photo by CandieN

Good Morning Green Panda Friends.  Today it’s time for the next post in our “Home For The Holidays” series.  This series will take us through to the end of December with tips on how to stay on budget during the holidays, the best places to shop for your holiday gifts, and the best ways to travel when going home for the holidays.  Our “Home for the Holidays” series will discuss everything that is related to the holidays.  If there is a specific holiday topic that you would like Green Panda to cover during the month of December then please let us know.  We would be happy to research and write about any holiday topic that you propose.

If you are like me then you travel home for the holidays.  I live in a city approximately 8 hours away from my home town and every December I travel home, usually by train, to spend some time with my family.  I have travelled home for the holidays for many years since moving away from home and I have had some pretty awful travel experiences.  Although booking a flight is (usually) a lot quicker, my favourite way to travel home is by Train.

Travelling Home for the Holidays

I absolutely love travelling by Train, during the holidays and all year round.  My trip home is a bit longer by Train than it would be if I drove home or booked a flight but I find the trip home on the Train to be very relaxing.  The cost to take a train is a lot cheaper than booking a flight so that is also more of a reason to take the train.  I enjoy the fact that I can read, work, and eat at my own leisure on the Train.  I prefer travelling by Train rather than driving because I don’t have to worry about driving in bad weather.  Even if there is a huge snow storm I can still travel by train.

Travelling home for the holidays by car is definitely the most convenient way to travel.  I love the flexibility of travelling at my own pace and on my own schedule.  I also like the fact that I can bring as much luggage as I want without having to carry it through two train stations or airports.

Booking a flight to go home for the holidays is an easy option and it turns my 8 hour trip into only a 2 hour trip.  The downside of booking a flight is that it is very expensive.  Unfortunately the cost of a plane ticket is just not in my holiday budget.  I would rather travel an extra 6 hours and save $500.  Booking a flight and actually getting to travel by plane depends a lot on the weather.  I would be very upset if I booked a flight to go home for the holidays and I missed my family dinner because of a snow storm.

I have never actually travelled by bus, but this Friday I am taking a weekend trip to New York City and I will be travelling with Greyhound Bus Lines. So next week I will let you know how it goes.  So far it has been all good, the prices are very cheap and the schedules are great.

How will you be travelling home for the holidays?

Check Out the Previous Posts in our “Home for the Holidays” series:

Don’t Let the Holidays be Costly

Don’t Be Tempted to Swipe Your Card

What are the best options for life after college? What can you do to ensure that your time after school isn’t wasted?

Now that we’re done with the Travel Like a Rockstar series, it’s time to think about life after college. With the fall term coming to an end there are going to be many of you reading this that are finishing up with college. Now that you’re near the end of your college run, you might want to start planning ahead so that you don’t find yourself watching Lost online all day.

I wrote about what to do after college and 7 alternatives to grad school. What were the 7 best options for life after college from my research?

1. Work Abroad.
2. Create something.
3. Start your own business.
4. Learn a new language.
5. Master a skill.
6. Do nothing.
7. Pay off debt.

Those are 7 amazing options to consider when you’re done with your studies. We’re going to randomly dissect each idea per post. Today we’re going to get into paying off debt after college.

How can your crush debt after college?

The process is really simple. Work like a mad man, eliminate your expenses, and put all of your money towards debt. There’s nothing else to it. I find that on other personal finance blogs and in real life we get all caught up in the minutia. There’s no need to waste your time on the minor details. You need to stop searching for quick solutions because you know damn right that there isn’t one that exists out there.

If you want to crush your debt after college you need to put all of your extra money towards your debt instead of sitting around and complaining about the economy.

What’s the best way to increase income?

There’s no secrets here guys. You need to get off your butt and work. Find a job. Find two jobs. If your full-time gig isn’t paying the bills, then you need to find a weekend/evening job to make more money. You need to do anything that’s humanly possible to earn more money. Find a job that’s beneath you. Find a job in sales. Serve drinks. Do everything possible to increase your income. Once you’re making more money you can then use this extra cash towards your debt payments.

How can you kill expenses?

Once again, you need to make some serious sacrifices. This isn’t going to be easy. You know where you need to cut back. You just don’t want to admit it. When in full out extreme kill debt mode, you need to cut out all of the BS from your schedule. The good news is that you won’t even notice because you’re going to be so busy with working all of the time. The bad news is that you’re going to be working all of the time for a certain amount of time.

Is this extreme method worth it?

It really depends on your outlook on life and how you feel about debt. Some of us don’t really care about debt and don’t mind the idea of owing money. Then there are those like myself. I personally hate debt and don’t want to be in debt. I do my best to ensure that I never get into any kind of debt.

Once you kill your debt you can start to consider the other options that are outlined in this series.

That’s all that I have to say about killing debt after college. We’re going to get into the other ideas shortly. For now I just wanted to ask you guys a question:

Have you made major dents on your debt lately?

(photo credit: norsez)

Good Morning Green Panda Readers.  It’s Monday December 5^th and that means there are only 20 days left to shop until Christmas. The holidays can be an expensive time of the year for anyone, but if you are living on a student budget the holidays can be a financial nightmare.  Green Panda is here to give students some financial hope and provide some tips on how students save money during the holidays.

Stay on a Budget During the Holidays

I know that it’s easy to get caught up in the excitement of the holiday season.  I also know from my own personal experience that getting in the gift giving spirit can be uplifting; it is very easy to get carried away while shopping during the holiday season.  Every single year I always make a Christmas List along with a shopping budget.  When I go into a store I always tell myself that I have to stick to my budget, but then while I am shopping I just get carried away in the spirit of giving during the holidays.

I never stick to my budget during the holidays and I always regret it later.  I always tell myself that it’s only an extra $20 or $50 so that is no big deal, after all I am giving gifts to my family and friends.  However, $50 x 10 gifts can quickly add up to hundreds of dollars in overspending.

Buying Gifts on a Budget During the Holidays

When shopping for the holidays we should always try to stay within our budget.  As a student people are not expecting us to give several expensive gifts. They know that we live on a (very little) fixed income and they will appreciate any gifts that we give.

Some great gift ideas under $25 are a 4×6 or 5×7 photo of you and your family in a nice photo frame.  Gift baskets are a great idea, we can purchase pre wrapped gifts to save time; but it is definitely a lot cheaper to buy the items individually and wrap them ourselves.  Assembling a scrap book of our family and friends over the past year or a recent family vacation is another great gift idea that we can assemble on a budget of under $25.

Using Your Credit Card During the Holidays

I try not to use my credit card during the holidays for several reasons such as potential fraud and unauthorized charges.  However, the main reason that I try not to use my credit card during the holidays is so that I can control my spending. I try to always remember that my credit limit is available to spend, that doesn’t necessarily mean that the entire amount has to be spent.

If we use our credit card during the hectic holiday shopping season we may be charged the wrong amounts by stores.  I am not sure if you have ever tried to dispute a charge on your credit card, but it is a very long process to try and get your money back.  The more we swipe our credit cards the more of a chance we have that our credit card information could fall into the wrong hands and we could become a victim of credit card fraud.

It is definitely safer for our budget if we use cash or our debit cards instead of our credit cards while shopping during the holiday season.

Photo by HikingArtist

I was catching up with my brother a couple of weeks ago and he mentioned that he’s been having having some financial issues. He’s been living on a tight budget. He’s going to school and he has a part time job building computer systems so his time is limited. As an older sister my first instinct is to offer advice; but I know that since he’s older now he knows what’s best for him.  I can give tips, but he’ll know what will work for his circumstances.

Global Economic Crisis

I know he’s not the only one dealing with the economic crunch, so I decided to share of the advice and tips I shared with my brother. Hopefully you can see what will work best for you and your situation.

Understand Your Finances

Having a clear picture on where your money is coming from and where it’s going is essential.

• How much am I (or are we) in debt?
• How much income do I/we take home each month?
• How much are the monthly expenses?
• How much do I (or we) have in savings?
• Am I behind or delinquent on any bills?
• How much is in my retirement account?
• What’s my (or our) net worth?

You have to be able to answer these questions with specific numbers, not estimates so you can create a plan that will work for your situation. If you’re looking for more tips I have a post on getting a handle on your finances in this economy that can help.

Protecting Yourself: Financial Risk Management

Many times I’ve mention finding ways to cut back on expenses. That’s an important truth, but for some people they can’t do that. Their budget is already bare bones and they need help paying the bills. The new reality is that many college students and graduates are a paycheck or two from financial ruin.

The solution is building up several income streams. It can be a side job or it can be many smaller projects and gigs that add up.

Look at your circumstances and see how you can add even just a little bit to your income. Here are some ideas to get you started:

• Babysit, pet sit, or housekeep
• Start a business
• Sell used items at a yard sale, on Ebay, or Craigslist
• Do some freelance work on the side

Each of these can give you a boost of income that you can use to make ends meet or stash away for an emergency.

If you’re in a relationship, work at keeping the lines of communication open. It’ll help you weather the storm and avoid money ruining the relationship.

You have an advantage with two people as both of you can find ways to nudge up your income.

If you have to adjust your spending and savings habits go over the plan together so you’re on the same page. Encourage one another to keep at it until you reach your goals. Instead of letting the crisis harm the relationship, use it as an opportunity to work together.

Psychology of Money

Looking at passive and active barriers and how to tackle them can help you increase your net worth?  Curious to see what affects your money making (or losing) decisions? Check other posts in the Money & Psychology series:

• Choosing Friends to Build Your Net Worth
• Decisions, Decisions – Making a Big Purchase
• Is Saving Really About Motivation?
• Ways We Spend Money Without Evening Knowing It (and How to Fix It)
• Barriers That Prevent us From Saving Money

How are you working through this economic mess? What tips can you share?

What if I told you that you’ve thrown away at least hundreds of dollars this past year for junk? Would you believe me? Would you think that you are too smart to make some dumb mistake like that?

While it may be hard to believe, but highly intelligent people like you and I have wasted money to various degrees. We’re all guilty of unconscious spending and for some of us, it’s hindering us from building out financial wealth. However thee are ways to keep it under control and replace them with habits to help us save more.

How We Spend Money Unconciously

Even though we stay within our budget most months, there are times when we’ve been surprised during our monthly review to see spending in a certain category go up.

• Eating on the Go: Sometimes I’m out doing errands and I’m hungry. Rather than pack a lunch I grab whatever is around at a reasonable price. Do it often enough and both my wallet and my waist notice.
• Last Minute Shopping Runs: The combination of lack of planning and life’s surprises usually means I’m making a hasty trip to the store where I not only purchase the item I need I also pickup a extras.
• Small Online Purchases: iTunes has made some good money off of me. I’ve been known to hear a song online or on TV, love it, and then purchase the single. Seems small, but imagine doing that several times through out the month (along with picking up an episode or two of television).

I’m sure I’m not the only one who has this problem. How many times have you’ve spent money on bottled water? Tap is fine in most of the country, but bottled water is a popular purchase. With a filter installed and a reusable container you can have fresh, quality water on the go.

The point is, many of us spend money without even knowing it. We’re not bad people; we just have some money leaks we need to fix.

By the way, the reason we stay within budget even when we spend more is because we’ve included buffer money into our family’s banking accounts. We’re human and we know that from time to time it happens. Yeah, we could beat up ourselves for every infraction, but we’d rather be realistic on how we budget.

Ways to Save Money Today

Just as it’s easy to spend money little by little, it’s also easy to start saving little by little. You just have to be creative.

Bank of America and Wells Fargo have a savings program that allows you to transfer small amounts of money from your checking account to your savings. You can set up a similar system with your own bank accounts. Start a small automatic transfer from checking to savings every time you get paid. Can’t afford $50, then start with $25.

Keep your loose change for the day and deposit it in a jar as soon as you get home. Wait until the container is full and then deposit that into your savings account. Making small changes in our lives can lead to big savings. You just have to be aware of what can save you a ton of money with minimal effort.

Psychology of Money

Saving may not seem exciting, but wouldn’t you rather be rich? Curious to see what affects your money making (or losing) decisions? Check other posts in the Money & Psychology series:

• Choosing Friends to Build Your Net Worth
• Decisions, Decisions – Making a Big Purchase
• Is Saving Really About Motivation?

What have been some hurdles for you when it comes to saving money? What helped you to succeed where you had failed before? How long did it take for you to reach your savings goal?

Photo Credit: Rev Dan Catt

I wanted to conclude the Little Savings Series by compiling an ultimate list of little savings that can have a big impact in the future. These are all minor savings today and big savings tomorrow. I’m not a frugality zealot by any means. I do however believe in the power of time and little moves towards a major goal. As a college student you can really benefit from these little savings in the long run.

Let’s jump right into it because we have a lot of ground to cover. Let’s go over the list of  12 little savings that can go a long way in the future:

1. Doing research today.

If you start planning right now, you can save yourself lots of money for tomorrow. This is what I do with trips and major purchases. The further in advance that I start planning the better off I find myself to be. This is a little saving and an investment of time that leads to huge yield in the future.

2. Drinking tap water.

I used to hate drinking water, especially tap water. Now I don’t drink anything but water. I find it to be so simple and yet very effective. Most of us are fortunate enough to have easy access to clean water. Water is cheap (free from a tap) and it hydrates us. I can’t imagine drinking or spending my money on a soda.

3. Pre-drinking before you go out.

If you’re in college on a tight budget or even a young professional you can save yourself some decent coin by drinking at a friends house before you get to the party. I’ve saved lots of money with this strategy because drinks are too damn expensive in Toronto.

4. Saving $10 a week.

If you start to put aside $10 a week and never touch the money, you’ll find yourself with a pretty beefed up savings account in a few years. The key is not to touch the money or to think about it. Just let it chill.

5. Preparing your own lunch.

When it comes to food we pay for convenience. When we eat out we’re paying a premium for someone else to prepare our food. If we took a few minutes out of our very busy schedules (sarcasm) we could save some real cash by just preparing lunch. If you can prepare all of your emails ahead of time, your bank account will be thanking you after a few weeks.

6. Turning the lights off.

Turning off the lights is a good habit to build early on. You might not save any money right now, but when you have a big house and a family you’ll notice the results.

7. Saving your change.

Do you have a piggy bank for your change? Don’t scoff at this idea just yet. Saving up your change in a jar is the easiest way to save a hundred bucks or so a month. Instead of throwing your random change towards a candy bar you can save it up and wait up until your piggy bank starts to get very heavy.

8. Sharing textbooks.

I used to hare buying text books. These are by far the biggest wallet buster for all college students. I highly urge you to find a way to share textbooks with a classmate. It’s a good way to turn a stranger into a friend and to save some big money over your four years of college.

9. Riding the bus.

I spent four years riding the bus. At times I hated it. When it was all said and done I was impressed with how much money I saved by riding the bus instead of taking the car to school. This little daily saving can save you fortune during college.

10. Learning a new language.

The more you learn today the more options you’ll open up for yourself in the future. Don’t be intimidated. Try to learn a new language. I’m trying to learn Spanish and I’m giving myself a year to pick it up.

11. Keeping your stuff for longer.

I kept my old laptop for three years. This doesn’t sound like much. The thing is that the laptop was no good and it needed to be replaced before I even bought it. I managed to ride it to the very end until it could no longer start. I need to admit that this only worked for me because I don’t play any video games on my computer.

12. Helping others.

If you can help a friend save time or with any problem that’s bothering them, you can build a friend for a life. This is a valuable connection that will stick with you forever. You save someone a little bit of money today and in the future they can somehow repay you with their time or money. Life can get pretty interesting.

I listed 12 little savings that can lead to big savings in the future. What would you like to add to this list? Let’s see how many more we can add here…

Check out the rest of the Little Savings Series:

Holding a Yard Sale For Extra Cash.
Your Daily Commute’s Impact on Your Wallet.
How Being Responsible Can Save You a Little Bit & Even Lots.
The Little Savings From The Things You Put Inside of You