Note: At Zen College Life, we like to look at how we can squeeze the most out of life. I firmly believe that not having to fret over finance frees you up to make the most of your time, and your life.
This is Part Five of the Take Control of Your Money! Series – a series of practical tips and step-by-step guides to take control of your personal finances so you can focus on getting the most out of life. Click here for Part 1, Part 2, Part 3, and Part 4.
It’s been about 6 weeks or so since we last looked at managing our money in the Take Control of Your Money! Series. By now, you should have been able to see a decent flow of money enter into your system and filter out to their respective accounts. In this, the final part of the series, we’ll look back at how the system has been working, fix any kinks, make any necessary changes, and get back on our path to smart personal finance management. Think of this as a pit stop for your finances.
Your pit stop may take a bit longer than 14 seconds, but it'll be well worth it.
So, financially speaking, how ya doin’? Personally, my system has worked out pretty well since my last post. For the summer, however, I’ve made some changes, due to the facts that I’m working more and spending more, as I have to pay for gas and any costs I incur while hanging out with friends. I’ve also reached some savings goals and established new ones. Chances are that the summer break brings a similar need for change to you, the college student readers here at ZCL. So, let’s look at the two factors that may have caused a need for a little tweaking of our plan: income and outflow.
Income
With the end of the school year came the end of my 10 hours of work per week. In its place have emerged more hours clocking in and out at my summer job and tackling various odd jobs. I’ve also gone and sold a bunch of stuff that I don’t use anymore, fetching me a nice little price. Chances are the summer is also affording you the opportunity to work more hours and bring in some more money that you’re able to during the school year.
Outflow
Coming home has also reintroduced some expenses I’m lucky to be able to avoid at school. My friends no longer live right down the hall or a short walk across campus and a car needs gas to run. Going to dinner no longer means swiping my student ID at the dining hall; it’s dropping a couple bucks at the diner. The Student Program Board doesn’t cover the movie; instead, the movie theater is more than happy to take my money. You get the idea. As such, I could use a bit more spending money. I still like that 30% figure because it makes sure that I’m putting money aside for expenses and savings. Also, if I find that I’ve got some extra money lying around, I can “spend” it on a savings goal or a Roth IRA contribution.
If the summer break doesn’t mean a similar jump in your spending and your system has been working, don’t change a thing! If, like me, however, you need to tweak a few things to afford some fun, tweak that number until you find a good level that works for you. I’d still recommend you keep your guilt-free spending to under 30%.
The Next 3,000 Miles
With our financial pit stop, we should be set for a while. The money should come into your system and filter its way into its respective accounts, leaving you with a growing savings account, another contribution closer to retirement, and money left over to spend as you please. Pick a date in the future – say 3 months, the end of summer, your birthday, whatever – to take a quick look at your plan again, see how its working, and make any necessary tweaks. It’s these regular check-ups that will allow you to catch any little problems before they become big problems.
Conclusion: This brings us to the end of our Take Control of Your Money! Series. Over the past few months, we’ve looked at why you should get your personal finances under control, got an idea of where you initially stood money wise, looked at where you got your money and where it ended up, and developed a plan for your future earnings. Again, all the advice I provided in my posts is just that: my advice about what I’ve learned about managing my personal finances from reading and first-hand experience. Any links I posted to different banks or financial institutions are to share my personal experiences with the institution; the ultimate decision of who to go with is yours.
I hope that I’ve been able to provide some help on simplying your personal finances, so that you can spend less time worrying about money and more energy on living your life!
