So if you're new to the blog, you might not know that I'm going through some pretty major life changes, including getting divorced and temporarily living at home with my parents to save up money to buy my own place (renting with pets is tough, and frankly, I've been ready to own a home for a while). Since I don't want to live at my parent's house for much longer, I'm working really hard to save up the last $10,000 or so I need for my down payment.
The biggest thing I've done to reach this goal is set up a strict budget, which has mostly involved fiddling with an excel spreadsheet for the last few months until I finally came up with some realistic numbers. This has required being really honest with myself about my expenses, including looking ahead to future costs and factoring that into my savings. I've found that opening multiple savings accounts for specific purposes has been really helpful to ensure I never need to dip into my down payment money. For example, I have separate accounts for pet meds and vet bills, car maintenance, reoccurring software and website costs, medical savings for upcoming copayments and deductibles, etc., and I contribute a small amount of money into each one of these accounts every month so that when I do need to pay for any of these items, I already have the money set aside to do so.
On top of that, I've started using another cool app called Daily Budget. Basically, you input your fixed expenses and your savings goals, and then it calculates how much remaining money you have to spend per day for the rest of the month. Every purchase you make outside of those fixed expenses gets entered into the app. If you over-spend one day, then you'll have less for the remaining days. If you don't spend any money one day, then you'll have more later. It's not a groundbreaking idea, but it is helpful to have a little app that instantly does those calculations for you so there's never any question about whether you're over-spending. I guess it helps me feel more accountable and aware of where my money is going. Because it's not like I'm saving 100% of my money. Living with my parents, I think it's pretty important I get out of the house at least once a week and hang out with people my own age. That means spending a little bit on gas, parking, public transportation, drinks, what have you, but using the Daily Budget app makes sure I never over do it.
If anyone's interested in a more detailed post on how I do my budget, particularly as a freelancer, let me know. I'd be happy to share some tricks I've learned.
To get me in this savings mindset, I've also been listening to the Dave Ramsey podcast. He's not 100% my cup of tea, I don't really care for his attitude at times or his political opinions, but I generally agree with his money principles. Basically, pay off your loans and then stay out of debt however you can (excepting a mortgage) by living within your means and keeping a strict budget. Again, it's not groundbreaking, but it works, and I find it's kind of helpful to have a virtual "cheerleader" for my savings and budgeting plans. I think his books are pretty good resources as well if you're looking for some money guidance.
So I'm feeling like I have a much better handle on where my money is going, and now I need to focus on increasing my salary. Getting divorced and having my household income suddenly cut in half has been quite a blow, and I need to make up for some of that loss. Increasing my hours with my university appointment has helped, but I need to take it a step further. I have ideas about teaching an online class and finishing my science writing book to sell on Amazon (and I have a pretty large Facebook group for marketing), but it's so hard to find the time to create new things when I feel like I'm always just barely keeping up with the freelance editing. Add to that my social life, which despite being fairly marginal takes up a disproportionate amount of time because of all the commuting I have to do to the city just to be around people my own age. Sometimes, it feels like I'll never have the time to work on these extra sources of revenue, but I guess if increasing your income were easy, everyone would be doing it.
My ultimate goal with all of this is to get back my independence so I can focus on the things that are important to me, like writing and other creative pursuits. I guess I think of this as the responsible road to life as an artist. Maybe you can relate.
How are your finances these days? Any savings goals or budgeting tips you'd care to share?
Writing, editing, and doing science when I feel like it. Just a book without a genre.