Lately, I've been reflecting on how I usually spend my money. As a full-time student, it's really hard to budget my money because I don't have any extra income. I heavily rely on my allowance from my parents, and I know not all the time they can allot enough money to all of my needs. I still have my medications, and that's one reason why we really struggled financially. Anyway, since my financial resources are really limited, I need to be wise on how I spend them.
Konnichiwa Hivers! It's me, your ridgette again! It's been a while now, but anyway, enough with the greetings. Let's get down to what I'm going to share with you all today. As I've mentioned earlier, my financial resources are really limited, and sometimes they're even not enough for me, so that's why I really do my best to make ends meet. Sometimes spending frugally isn't enough to make my money last a long time, so here are the things I do to avoid getting caught in a hopeless financial situation:
Know my needs.
Before I start allotting money, I usually anticipate first what are the things that I will need so that I can prioritize them. I really spend time reflecting on the things that I really need and the things that are just classified as my wants. In budgeting, it's really important that you're able to correctly classify the things you need from the things you want. Since I don't have an income yet, I just focus most of it on my needs. Things such as my budget for food and fares are one of the things where my money mostly goes. It's important to note that all of us may not have the same needs in life because, after all, we don't have the same priorities. So it's important to know my needs before I spend money.
Stay within my budget.
Temptations to buy something out of my budget are always there. As much as possible, I really resist it because buying out of my budget will mess up my money allocation. Since I'm still a student with no income, it's important for me to be more careful when spending money. Well, I've really encountered students like me before who said that you only live once, so you must enjoy it and buy anything you want. I find it really absurd because what's the point of living today if you can't afford to live tomorrow?
Some said in defense that they can just ask their parents for money, which I find quite pathetic. I mean, I'm not really against asking for money from parents because I, myself, do that. But if it's just for your wants, then, as much as possible, avoid it. I know it's really hard to be a parent because it's not only your needs that you need to think of. You also need to make ends meet so that you can allot enough money for your children's needs. So as much as possible, you really need to be mindful of how you spend so that you won't end up asking your parents for money, thus making them work harder in the process because they know they need to so that they can attend to your needs.
Buy the quality ones.
In my financial situation now, I really need to be a smarter consumer. That's why, when buying something, I really choose the cheaper one because it's much more budget-friendly, but of 'course that's not the case all the time. There are times that I quite extravagantly spend just for a thing I need, and one of the unforgettable moments that featured that one was way back in my first year of junior high school. So I was in 7th grade at the time, and I really needed to buy mechanical pencil because we're required to. I was in the mall, and of 'course I found cheap ones, but I remembered what my classmate told us: to buy this specific brand of mechanical pencil because it would last a long time.
I immediately looked for it, and I was shocked by its price! It's more than half of my allowance. I'm really struggling to decide if I will buy it because buying it would mean that I would be forced to cope with a much smaller budget for that whole week. Anyway, my undaunted self won, and I really bought it. Up until now, it's still the mechanical pencil that I use. I didn't buy new one because it's still in good condition, and I really did save because I don't have to buy new mechanical pencil (just the lead refills). So for me, it's really important to buy quality products so that you won't end up buying and spending again on the same thing if it gets defective. Indeed, my sacrifice for one week was worth it because my mechanic pencil still lives on and is more than 7 years old!
Don't forget to save.
Well, for me, saving is really important since I don't have an income. It allows me to still fund my unplanned expenses, such as unexpected projects from school. I don't really like to rely on my parents for those expenses because I know they are struggling to budget money for our needs. So I have a formula for spending that really prioritizes my savings: Income – Savings = Expenses. I learned this formula way back in my junior high years, but I didn't apply it immediately.
It really took me years to understand the importance of this formula in budgeting. At first, I really thought it was absurd because I found it unnecessary to save. In my mind, as long as I allot money correctly, everything will be fine. But when I encountered an unfortunate situation, I regretted that I didn't save some money. I'm really thankful that somehow that formula helped manage my available financial resources. Until now, I still applied it, and thankfully, I was able to avoid any financial problems yet.
Set up some goals!
Setting goals is important for me because it keeps me on track with my spending. This is really applicable if I wanted to buy something that I couldn't afford at the moment. Since I don't want to bother my parents, I save for it. Well, for me, my savings for that thing are separate from my savings for my emergency funds (money for unexpected things!). That's why, to avoid losing the will to save, I make goals.
I usually write a specific amount of money that I need to reach in my calendar because it's easier for me to be reminded if I often see it. Through that, I will be more motivated to save because I'm properly reminded. That's how it works for me, but any way will do as long as it effectively reminds you of your saving obligation. Whether you write it in your journal or even in sticky notes, anything works fine as long as you don't forget your goals. Setting goals and following them also helped me improve my discipline, so it's kind of like hitting two birds with one stone. I'm able to save money and at same time practice and improve my personal discipline.
Overall, it's really important to be smart when spending your money. I admit that there are times when I make inaccurate financial decisions. It saddens me because I somehow lose money that I really need, but of 'course there's no point in moping about the things that are irreversible. Learning from those inaccurate financial decisions improves my financial decision-making skills. I know I still have a long way to go because I know things will be more difficult as I grow older, but I'm hopeful my learning will guide me through.
That's all for now, Hivers! I hope you learn something. Always remember that your mistake doesn't make you less, so learn from it and be more! Thanks for reading up until the end. See you in my next blog!
Tanoshinde ne minna-san~
The first picture was edited in Canva, while the rest of the pictures were taken by yours truly, ridgette.
I like the calendar method that you use ha, this one's unique in tracking the savings! Some people use their mobile if they want to make sure that they are on track but having a visual representation that shows it in your face immediately might work for some.
I do have this mindset, most of the time I buy cheap products not looking in the long term goals. I still do it from time to time as my funds are limited. Now that I need to buy a washing machine, I am contemplating wether to buy a cheaper one vs the branded that cost twice or thrice hahah. ( I still remind myself that regardless of what I buy, I might be using it for years tho. )
Exactly, if my budget is really tight, I really choose the cheaper ones, but as much possible when I buy something that I envision to use for a long time, I often go with the quality products so that I can avoid spending money in buying that same new product again.
"really important to be smart when spending your money" is true🤍
It's really a must to be smart in handling money especially that we're students •ᴗ•
I like the way you handle your finances Ma'am @ridgette you are very practical and you prioritized your needs than your wants.
Thank you maam @diamondinthesky! I really need to because it's really a must..
That's good Ma'am @ridgette with your good attitude in handling money, you will go far in life.
I'm hoping that someday I can..Thanks maam, your message is inspiring.
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