Need help with my budget.

[T_I_N_A20]

I'm 17 and I have a problem with my spending habit, it's nothing compare to my friends and they see me as a cheap person that's always finding ways to save my money. It may seems true but I have a very big spending problem, for the past 7 months, I have spent 923.10$ on clothes alone, that's way over the limit and I really regret buying a 200$ jeans because my friend encouraged me to buy it, since it looks really good on me... Later, I found jeans that are 30$-50$.

I keep my spending on track with my notebook, and I review it at the end of the month to see what area I need improve, so far, I stopped eating out and start buying groceries and cooking meals at home. I don't know how much I save so far, I stopped eating out for two weeks already except today, I bought Mcdo because I was very very hungry and I lost my appetite at lunch time when a fly touched my meal, I also killed it with my spoon... I hate eating at my dad work place, so much flies flying around.

I don't go out often to hang out with my friends, the activities they ask are very expensive and I don't work anymore, so I have to watch my money, more importantly my savings that I have saved for the last six months, so far, I had around 700$, plus my change that make 420$ (I saved it separtly for my future around the world trip that I'll talk about it later), that makes 1120$ in my saving account. I recently went shopping for clothes for my interview today, I applied for H&M, a very trendy store and I refused to work 20 hours/week starting in September, so I got refused to do the interview... I don't care anymore, their clothes are not really my taste anyways, and the hours they asked me to do will take away my study.

Anyways, the point is, when I went shopping, I was only thinking about buying a shirt or two from the H&M store, and I end up buying a shirt, a sweater and some weird looking gloves that I found pretty and cheap, that makes 52.07$. After that, I wanted to leave right away, but the mall was having a BIG sale... I told myself, what the heck I still have 147.93$ on me, I'll only spend 100$ today. I've found some lucky find, like a shirt for 5$ at American Eagle, 4$ tank top from the kids section (I can actually fit them... I was surprise. o.O)... But at the end of the day, I've spent 190.83$, then I realized I have a big problem in this area... I look at my spending this month, the total is 368.77$ in July. I shouldn't have step into the American Eagle store or the other stores as well... Or even go shopping at all.

I am happy with my purchase though, I have a very colourful wardrobe now. I just want to avoid spending too much money at the same time and later, regret about it... So I decide to spend 100$ every three months, to avoid frustration at the end, but I'm not completly sure if I can follow it.I go to the other forum where there's people that are the same age as me, I remembered seeing their wardrobe where they have full of clothes, they said that they have a lot of clothes that they don't wear, but I want to have a full wardrobe too... When I look at mine, it looks empty, and I want to load my wardrobe slowly, I try choosing my clothes wisely when I go shopping, to avoid wasting my money for nothing. If I take my own advice, I'll spend about 400$/ year. I won't shop at thrift store or garage sale... Sorry, I'm not use to the used clothing from other people other than my own family, although, I can't ask clothes from anybody in my family since I am VERY picky in clothes and my mom tried the hand me down, out of ten clothes she gave me, I only accepted one, her other clothes are broken or really not my taste... I feel like I'm a garbage to my mom when I found one or two holes in some of her shirts that she gave me. Honestly, my mom don't know my taste or don't really know me, so she always assume things about me and tell everyone else, when they see me, they claimed things that my mom said and half of it it's not even true or she don't know why I did that. I want to sew my own clothes, but I hardly have any time and money now, #1 : I'm going to college soon, I need to study a lot for the first two terms to get good grades. #2 : I'm going to find a part-time job to earn money for my long-term saving in three years and I don't want to ask for my parents money too often because I feel really guilty always asking them to pay me stuff. #3 I don't have the money for the sewing machine, lessons and any other things... It's going to cost me a lot in the end, but it'll save a heap of money later on because I'll be making my own clothes in my taste, but I'm going to think about later, when I have enought money for my goal.

Entertainement should be no problem for me, I only spend less than 300$ these past 7 months, but I'm planning to do only 200$/year if possible and stop listening to my cousin who's constantly asking me to join her in her expensive activies like seeing a movie every Friday at 10$ at night (Tuesday and Wednesday are only 6$, my local video store have pretty recent movies, it costs 3$ for 3 movies), going to the amusement park for only a few hours that cost 34$ for the entry (I went there 10 times in my life, and all I remember is waiting in line for more than 40 min to get on a ride, I hate that and I don't plan on going back anytime soon, maybe for a special friend , I'll consider it.), going swimming in the olympic stadium (cost 4,50$ to go in and at my school, it costs 1,50$ for the entry.) and going out to eat two meals in the same day. Her parents give her the money like 20$ everytime she goes out. She respects some of my frugal ways like taking the bus, while she's free (Her uncle sell bus card) and I have to pay 1.80$ to take, last time,I suggested going on roller, and she agreed.

Food so far is 379.17 included going out to eat, buying my own food for cooking and... Buying drink once or twice so far in seven months. I've decided to buy my own groceries when school start, my mom usually give me 80$ for my lunch card (cost 76$) for a month, and I think I'm going to stretch my money and make my own lunch from now on... The rest of the money, I'll put it on my long-term goal. yay! If I can survive 22$ in groceries for 2 weeks, I think I can survive 44$ for a month for lunch and breakfast, there's even enought to make two lunches a day for my brother or sister and I. . yay!. I don't know about eating out... It'll be my own expense though. For the past 7 months, I eat out like 3 times/ month...I think it's okay, since I don't go out often, so I don't eat out often either. About 10$ eating out and that makes 30$/ month.... That makes 360$/year. I think it's okay. I'll see if I can follow it.

I don't think I need money for emergency. I still live with my parents. I can't think of anything that's considering emergency for a teen... All the superficiel things. Do I need it in case? For what exactly?

Charity money... I don't know what organisation I want to donate my money to. I believe in many things that have to be solve, but the people in Africa always touch me, when I think about it, I need to help things that's more near me like the Aid and other sickness. I remember reading something in a book, to donate 10% of my paycheck or something. It's okay with me.. Any suggestions?

Saving my money... I called it saving money for nothing, since I already save my 50$ off my paycheck weekly to go directly to my savings, I don't know what to do with it, and I'm satisfied with it because I know I have money that I don't need.

Saving for long-term goal ; I want to travel around the world in three years. That's one of my main dream. I'm thinking before I enter University, I take a year or two off and go travel the world with only a backpack with me and traveling cheaply... It's going to cost me a lot, but I really really want to do it, it been my dream to travel when I was six years old and still is. I know it's not possible with my busy scheduled, I'm going to college soon and I can't work more than 15 hours a week... I'm thinking of investing somewhere to watch my money grow, but I don't want to lose my money in the proccess either, so any suggestions on where I should invest in ?

I think that's all for now... Thanks for taking the time to read my LONG LONG thread, and I hope you guys can give me suggestions on my budget or comment on it ._." or even critisize it hehe... I need help with my spending money on clothes the most, I can't seem to tone it down a bit.

[Broken Arrow]

Uh... ooookay.

I apologize in advance that I didn't read everything.

Basically, the gist I got out of it is that you'd like to do something about your finances. By being a teenager, I assume that you're still living with your parents, right? And that your earnings are mostly disposable?

Here's something I'd really like you to think about: Roth IRA. Max the contribution every year (currently, the max is 4k). It's something that you will LOVE LOVE LOVE some day, especially if you start saving up for it now!

Next, I'm sure some day, you'd like a house. Wouldn't you like that? I think we all do eventually, right? So, just start a house fund with an online bank account, and start socking it away!

How about a car? Do you want a car too, or is your parents already providing you transportation? If not, it wouldn't hurt to think about saving up for one as well. Same thing here. Just open up an online bank account and start socking it away.

I think I saw somewhere in there that you'd like to be able to travel. Travelling, and any other kind of projects for that matter, will require savings. So, just set up a travel fund and start saving up again!

After that? Well, if you want to use it for shopping or food, then by all means, go ahead. There's more to budgeting than this, but if you can just get started and keep funding all of these savings, then you'll be well ahead of the game!

[sakigt]

1) Think of every shirt as a missed outting (maybe even 2) with your friends. When you think of your money spent as money that you could have spent doing something else, it will become easier.

2) Dont plan a huge trip to another country. Let your school do it for you. I went on two study abroads through my college by myself (as in, I didnt know anyone before I left...and Im a fairly shy person)...one to China and one to Argentina. I had a blast and spent considerably less and saw more than If I had done it alone. PLUS my scholarship covered the tuition AND I got college credit for both. What an experience! My only regret was that I didnt do more.

Good luck!

[dshep]

First let me say Congratulations on being so worried about your money and trying to save. For a 17year old that is awesome! I am confused about something. Are you going to be a senior in High School this year or a freshman in college? If you are going to be a freshman in college, there are lots of jobs on campus, that will also help to reduce your college bills... my son works in one of the offices and he only works two or three hours a day. If you are a senior in high school, then I am totally confused as to why you are buying your own grocerys. My kids pay when they go out to eat with friends , but I buy all the groceries for the house. Congrats again and keep us posted.

[PrincessPerky]

put the money out of reach for your 'big goals' and make one of them 'respoinsible' (like Retiremen and or house) and one of them 'fun' (like travel)

then leav some budgeted for 'mad money' like an allowence, a monthly spend it where you feel like it...I would prolly recomend a weekly amount, that way you can go cheap and have a good week at the end, or have 4 medium 'wasted for fun' weeks

and do realize that some money is for fun..just hopefully not all.

[Broken Arrow]

Originally Posted by PrincessPerky

then leav some budgeted for 'mad money' like an allowence, a monthly spend it where you feel like it...I would prolly recomend a weekly amount, that way you can go cheap and have a good week at the end, or have 4 medium 'wasted for fun' weeks

Yes, and for starting out, one recommendation worth considering is to convert all of your spending allowance to cash, and carry that while leaving your credit cards and checkbooks at home. That way, you can't go over-budget.

[T_I_N_A20]

Broken Arrow : That's awfully a lot of things to think about haha... I don't know if I can separate my paycheck for a house, car,travel and my other areas of spending. I'm scare of talking to my father about it though, I think he'll be a big help with finding the right place for me to save my money for these things, hopefully a place where my money will grow.

Haha... It's okay you didn't read everything, I wrote too much unnesessary things. xD

Sakigt : Yeah good idea, I should avoid the shopping mall more often, but I'm going to be finding work in there soon... I guess my job is to ignore the clothes and work there to earn money.

dshep : Thanks ! =) That's the first time someone said to me. I'm going to be a senior in High school, this year will be my last before I enter College. I buy my own groceries because my parents don't have the time to buy groceries like once a week, more like once or twice a month, so we're always eating pasta, and my mom hardly have the time to make my lunch. Even if I want to make my own lunch, there's nothing in my house that I can bring.

PrincessPerky : Yeah, I'll think about your suggestion. Retirement... xD OKay, my dad will laugh at me for sure hehe. I'll ask him to help me open all the accounts that you guys mentioned.

[PrincessPerky]

umm making lunch..you might want to learn to cook..it will save thousands down the road.

I am a lousy cook and I always pack DHs lunch.

if you have access to a microwave you can pack almost anything, if not, then you are a bit more limited, let us know which it is and we can help.

lety your dad laugh, he will still be proud if/when he thinks on it.

[Broken Arrow]

Originally Posted by T_I_N_A20

Broken Arrow : That's awfully a lot of things to think about haha... I don't know if I can separate my paycheck for a house, car,travel and my other areas of spending.

Well, here's an easy, easy way to start out then:

Open up a checking account. Get your father to help you if you want. Put all of your paycheck in there, except a small fixed amount that you have designated for spending money, and convert that to cash. Use only the cash.

That's the first step anyway. There's a few more, but I promise you it's not difficult at all.

How about that?

[T_I_N_A20]

Originally Posted by Broken Arrow

Well, here's an easy, easy way to start out then:

Open up a checking account. Get your father to help you if you want. Put all of your paycheck in there, except a small fixed amount that you have designated for spending money, and convert that to cash. Use only the cash.

That's the first step anyway. There's a few more, but I promise you it's not difficult at all.

How about that?

I have a bank account cosigned by my father, but it's mine and I'm the only who knows the password. All my paychecks go in there. I also have another bank which I had since I was seven years old, I get pay about 60$ every two weeks in there for three years already and my money keeps growing without me realizing, I have no clue how much I have in there though and it been almost two years I haven't touch it, my dad took it away from me when I was 15 when he found out that I was spending 1000$ in less than three months, I'm glad he took it away. Both my bank accounts, I'm the only one who knows the password.

I'll talk to my father when I get a job in Septemeber or should I do it now? I don't work anymore since mid-April and all I have is my savings in my bank account and my other bank account that I have no clue how much I have, it probably run in the 3k by now, but I can't touch it.

I think I'm really well off of compare to my brother, I'm way more richer than him. Sorry, I feel like venting it out. hehe...

[Broken Arrow]

Ah excellent. Now, all you have to do is to start your own savings. What about contributing to the account that you can't access? I'm sure your father would be more than happy to see you increase your own contributions.

Sadly, my sister is doing much better than me also. While I went off and got married, she was busily saving money away. Now her net worth is way higher than me even though she's younger than me!

[Ima saver]

I think you are spending way too much money on clothing. That money you are spending now on clothes will be worth thousands of dollars in 20 or 30 years. You are only 17, in 10 years, you will wish you had all the money you are wasting. But you are smart to start thinking about it.

[T_I_N_A20]

Originally Posted by Ima saver

I think you are spending way too much money on clothing. That money you are spending now on clothes will be worth thousands of dollars in 20 or 30 years. You are only 17, in 10 years, you will wish you had all the money you are wasting. But you are smart to start thinking about it.

I've been thinking about it for seven months, but I have a few leaks here and there, there's also the peer pressure that I can't handle it sometimes... I get suck in easily from times to times. I'm going to watch my spending in this part, I'm going to try to shop less.

[Ima saver]

Good for you!! You could be a millionaire if you can just save and put away (and not touch) just $2 a day!! (starting at your age) You need to open a mutual fund .(and a roth ira)

[kealina]

my SIL is 17 like you and is starting college in the fall... i wish she would think about her money like this... good for you... it's very smart to think ahead like this although i do agree that you are spending too much on impulse shopping... at least you are aware and admit it... that's usually the first step to financial freedom...

[T_I_N_A20]

Originally Posted by Ima saver

Good for you!! You could be a millionaire if you can just save and put away (and not touch) just $2 a day!! (starting at your age) You need to open a mutual fund .(and a roth ira)

where can I find roth ira? I remembered I ask my dad about this or other company, don't remember, and he said he don't know what it is ? I think my dad can help me with the mutual fund. I like the idea, becoming a millionaire xD. At what age though ? I hope I can retire young and rich, so I can show the people in the future who used to make fun of/mad at me for being frugal, that I'm successful now. Hehe ^.^"

Kealina : Yeah, I guess it's hard to convince young people to save. Good thing I came here last year or I wouldn't even think of saving for anything.

By the way, what's DH, SIL and other words you guys use? I don't have a clue what that mean.

[Broken Arrow]

Originally Posted by T_I_N_A20

where can I find roth ira?

www.vanguard.com

At what age though ?

The later you retire, the (much) more your money compounds a builds up. I would shoot for no less than 65, preferably more.

I hope I can retire young and rich, so I can show the people in the future who used to make fun of/mad at me for being frugal, that I'm successful now. Hehe ^.^"

Well, I understand the feeling.... However, IRA won't grow that "fast". Rather, I think it would be better to just not care about what the other girls think. Believe me, you're doing the right thing here. Eventually, they'll see that too, but not until much later when they're neck deep in credit card debt. Who knows? Eventually, they may even ask you for advice on how to get themselves out of this mess. Then you can tell them, "Frugality, girl! Get with it!"

By the way, what's DH, SIL and other words you guys use?

That threw me off for a while too, because this is the only board that I am aware of that uses this kind of abbreviation. DH is short for Darling Husband. SIL should be Son-In-Law. You can apply the abbreviation scheme to the rest of your family members (ie. DD3 for Darling Daughter #3).

Keep in mind the dollars she is spending are Canadian dollars.

[T_I_N_A20]

Broken_Arrow : Yes, I'll come here often, it'll motivate me to save more... Hehe I'm in Canada though, I don't know if there's a IRA here.

[T_I_N_A20]

My dad told me I don't need a retirement account... I don't know exactly what it is though, anyone kind enought to explain to me in detail about that ? How it works exactly? How come I can't get it now? I don't have a job that pay a lot, I only do part-time job after school. =/