How I manage my money

I start working since mid-2015 and have saved up quite a decent amount of money to spend on some serious thing. I think high income is a huge plus, but knowing how to manage your money and save up are more important. Earning a thousand or a million aren’t different if you just spend all you earned. You won’t be able to have some emergency money.  So, I am here to share my current way to manage my money.

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Honestly, I never work before I graduate from college. My current job is my first job, and I am pretty lucky to work in a startup and have a nice boss. He raised our salaries several times. I think it is because he earns a lot more XD This really help me to save up faster. It is the main reason of keeping this job even it is not related to my degree. I have been doing the following since I was in college. Financial Aid is my income. I never ask my parent to help me out or get a job when I was in college and living in the apartment. Well, they do bring me food once a while, but overall I can pay everything.

1. List your fixed cost

This should be easy. We have something need to pay every month, such as rent, mortgage, car, phone, the internet, etc. Don’t include food, water, electricity or anything that we can save on. In my case, I have car mortgage, rent, school loan and phone.

2. Over estimate your non-fixed cost.

Take out your water bill, gas bill, electricity bill, and remember how much you spent on food last few months. Calculate the average and list it out. Make sure add a little bit more in case you spend little more. Example: If average cost is $150, make it to $170. In my case, I share my bill with people living next door, and I only need $100 for food every month, so it always below and around $300.

3. Calculate your free money

Subtract 1 and 2 from your income of the month to get the amount you can spend the way you want. For example, I earn $3500/month, fixed cost $1965, non-fixed cost $300, I have $1235/month to spend or save.

4. Limit how much you can spend per month

I limit myself to spend at most $200/month. You can spend $100 for one month and the other spend $300 as long as you set a limit to spend. I know it will be hard for people who eat outside a lot, but saving up is not an easy job anyway. If you cannot cut out some of your spendings, you won’t save up unless you have more than one job and earn double. Keep in mind that the less you spend your free money, the more you save.

5. Never buy something you don’t use

This sounds easy, but I know a lot of people fail it. I have a habit when I go shopping. I always ask myself if I am going to use it. I do this when I go grocery shopping too.  Although I buy something fancy to treat myself, I make sure I don’t waste it. I think rice, noodles and frozen veggie are foods we can stock up when they are cheap. They can store and keep fresh very long time, and they can feed us well 😉  Knowing what is necessary and not necessary. If you walk or stand a lot, buy a good pair of shoes is necessary.

6. Try to cook at home

If you don’t cook at home, try to calculate how much you have spent on food last month. I bet that can help you get a new phone. I am a bit crazy on calculating how much I spend on food. As I said above, I just need $100/month for food. This $100 probably can allow you to have 10 meal outside. I don’t know how to cook fancy dishes. I can simply just use frozen veggie and rice to make fried rice and last for a week when I really need to save some more extra month XD

7. Find a way to record your spending

I use my credit card and rarely use cash. I track my monthly spending online. If you use cash often, use an excel or any paper to write down the money you spend. If you are lazy, you can simply put numbers only, but I recommend at least group them. Example: Food $40, clothes $100, beauty $60, etc. This way you can understand what you spend the most and what you can cut off to save up.

8. Other

Walking instead of taking a bus. Taking a bus instead of driving. Share apartment or room with other people. Using old clothes as a pajama. Air dry your clothes (better to dry them under the sun) instead of putting in drying machine. Charge your phone outside XD There are so many other things can do to help save up few dollars.

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These are few things I do to manage my money and save up. Of course, it is great if you earn a lot, but knowing how much you spend and save some portion every month won’t damage your life. We never know when we will need some extra money. If you have money to spend on something you don’t necessarily need and don’t care about emergency need, you can donate or use that money on people who need it.

I hope these tips can help you or inspire you. Do you have any saving tips? Thanks for reading, and I hope you have a wonderful day!

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maggiesimplelife

I am a 24 years old Asian girl living in San Francisco with natural brown silky long hair XD I love Asian beauty and currently learning more brands around the world. I am for sure a cat slave, but I couldn’t have one in my apartment yet :( so I have a cat collection <3

September 8, 2017

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37 Comments

  1. Reply

    loismari

    September 11, 2017

    One thing thag works for me is to convert the cost of what you are buying to time it will take you to earn it. For instance, if I earn say $20 a day. To buy a $20 pen, I would have to work a whole day. Make me wonder if something really is worth a day of my salary.

    • Reply

      maggiesimplelife

      September 11, 2017

      It is a good way. But it doesn’t work for me 🙁 My workplace allow a lot of overtime so I can earn extra anytime I want. Job is not that hard either. I am the type that can have one small meal a day to save money. I would like to think if I will use it. I don’t really like owning something I don’t use. (It is why I never buy anything to display)

      • Reply

        loismari

        September 11, 2017

        That works fine too. And you won’t have clutter as well. KonMari like kind of mindset.

  2. Reply

    catherinescornersite

    May 22, 2017

    I prefer to spend cash so I can take out my budget each week in cash then I know when the money is close to running out. I also save up some small change, usually 20p and 10p in a little pot and put them in the bank when they reach a decent sum. There are loads of little tricks, but you seem to have yours sorted!

    • Reply

      maggiesimplelife

      May 22, 2017

      I like using card so I can see the amount on a computer. It is easier for me to calculate. I think cash works well for you and it is great! Now I think the main trick is to remember our budget and remember saving. XD

      • Reply

        alice_beonmoney

        May 29, 2017

        How about if you use credit card.?

        • Reply

          maggiesimplelife

          May 29, 2017

          That’s what I am using. But make sure you follow your own rules well. Not paying credit card bill is horrible. That affect our credit a lot.

  3. Reply

    Anthony

    April 22, 2017

    Those are definitely solid tips. You may have changed someone’s life.

    • Reply

      maggiesimplelife

      April 22, 2017

      Aww Thank you very much! You are so sweet. I hope I change their life in a positive way XD

      • Reply

        Anthony

        April 22, 2017

        I hope so too.

  4. Reply

    Akshay Iyer

    April 7, 2017

    Some really effective and simple tips !!
    Good stuff … 👌😍

    • Reply

      maggiesimplelife

      April 7, 2017

      Thank you. I am glad you like it 🙂

      • Reply

        Akshay Iyer

        April 7, 2017

        It was a pleasure reading it maggie !!😍✌

  5. Reply

    heymissanne

    March 23, 2017

    Great budgeting advice!

    • Reply

      maggiesimplelife

      March 23, 2017

      Thank you very much! Glad these can help XD

  6. Reply

    Thoughts in Life

    March 12, 2017

    These are really some great and helpful tips to manage money 😊😊

    • Reply

      maggiesimplelife

      March 12, 2017

      Thank you very much! I am glad you like it 🙂

  7. Reply

    hoiyinli

    March 6, 2017

    These are some great tips, Maggie! Also, love the new layout of your blog 🙂 <3

    • Reply

      maggiesimplelife

      March 6, 2017

      Thank you lovely <3 I love you 🙂

  8. Reply

    Rose

    February 26, 2017

    Ahh I really need to follow your advice because I’m not the best at managing money. Thanks Maggie for the awesome post. 😀

    • Reply

      maggiesimplelife

      February 27, 2017

      Thank you very much Rose! I am glad this help! Hope you have a nice day 😉

  9. Reply

    TheFallibleQueen

    February 23, 2017

    These are great tips I’m working on budgeting myself. i like that you mentioned walking instead of driving, gas can certainly add up expenses. I use the mint app and it lets me program how much I am spending each month, which is helpful. I also donate clothes that I no longer wear that are in good condition and fairly stylish to Plato’s closet to get some extra cash to put towards a rainy day.

    • Reply

      maggiesimplelife

      February 23, 2017

      Thank you very much! There are so many way we can save money or earn some extra money. I saw some fashion blogger resale their clothes. One of my friend check gas price every morning XD

      • Reply

        TheFallibleQueen

        February 23, 2017

        oh wow that’s dedication lol and you are so welcome 🙂 There definitely are so many ways, I’m grateful for that.

  10. Reply

    Reya

    February 23, 2017

    Awesome tips!
    That purse though… <3 xx

    • Reply

      maggiesimplelife

      February 23, 2017

      Aww thank you sweetie <3 I love this purse so much <3 <3

  11. Reply

    randomthoughtsbyhaya

    February 23, 2017

    These are some really great tips!

    • Reply

      maggiesimplelife

      February 23, 2017

      Thank you very much. I hope they can help somehow

  12. Reply

    Cheila

    February 23, 2017

    You sound very organized, you know where all your money is going which is really good. Those were great tips. xo

    • Reply

      maggiesimplelife

      February 23, 2017

      Thank you very much! I want to save up and being able to spend some every month, so I track every purchase I made. Lol I believe that being a rich people is more like how much free money you can use.

      • Reply

        Cheila

        February 23, 2017

        I agree 🙂

  13. Reply

    makeupdreamerblog

    February 23, 2017

    helpful post for may

    • Reply

      maggiesimplelife

      February 23, 2017

      Thank you sweetie <3 I wrote this for one of my friend too. I hope this can help her and my readers.

  14. Reply

    Wm. Allen

    February 23, 2017

    Good tips on money management.

    • Reply

      maggiesimplelife

      February 23, 2017

      Thank you very much! I hope it doesn’t look messy and too basic

  15. Reply

    Cat Forsley

    February 23, 2017

    That wallet …… OMG
    xxxx so cute xo

    • Reply

      maggiesimplelife

      February 23, 2017

      lol when I see your name, I know we have similar preference 😉

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