Being a grown up is hard.
March 5, 2010 11:09 PM Subscribe
I need to spend the next six months saving as much money as possible. I suck at saving money.
I'm heading off to grad school this fall and need to have as much money saved as I can, both for tuition (I won't find out about my funding for a new more months, and I want to be cautious just in case) and living. Right now, I have a job that pays pretty well. My current student loans from my undergraduate degree are $400 USD a month, and my other bills and whatnot are roughly $250 USD a month. Ideally, I'd like to be able to save around $1,200 USD a month. This should be easy.
However, I completely suck at saving money. I'm very extroverted and love to go out with my friends several nights a week, I love shopping, and I prefer taxis over buses, so right now I have nothing in savings. Zilch. Nada. I know I have to stop doing these things, or somehow work around them so I don't feel lonely or like I'm restricting myself, but what other things should I be doing? How do I teach myself to save?
If it helps, I come from a long line of extravagant spenders, and I live in a country where the only people I can successfully talk to in the local language are elementary school kids, so I can't go to anyone like an accountant.
I'm heading off to grad school this fall and need to have as much money saved as I can, both for tuition (I won't find out about my funding for a new more months, and I want to be cautious just in case) and living. Right now, I have a job that pays pretty well. My current student loans from my undergraduate degree are $400 USD a month, and my other bills and whatnot are roughly $250 USD a month. Ideally, I'd like to be able to save around $1,200 USD a month. This should be easy.
However, I completely suck at saving money. I'm very extroverted and love to go out with my friends several nights a week, I love shopping, and I prefer taxis over buses, so right now I have nothing in savings. Zilch. Nada. I know I have to stop doing these things, or somehow work around them so I don't feel lonely or like I'm restricting myself, but what other things should I be doing? How do I teach myself to save?
If it helps, I come from a long line of extravagant spenders, and I live in a country where the only people I can successfully talk to in the local language are elementary school kids, so I can't go to anyone like an accountant.
Host a potluck or two and invite your friends over. Same social scene, much less money out of your pocket, and no travel costs.
posted by spinifex23 at 11:29 PM on March 5, 2010
posted by spinifex23 at 11:29 PM on March 5, 2010
Make a budget that allows you to save US$1,200/month, making sure you have enough to spend on rent, insurance, loan payments, food, entertainment, hobbies, and any other expenses you have, ensuring you pay attention to those that may get neglected. Then get a savings account, deposit your pay there (or have it deposited directly), and set up an automatic transfer to your checking account for however much you've budgeted. If it's not in checking, you can't spend it.
This depends on a certain resistance to transferring from savings to checking, of course. I keep my main savings and checking accounts at different banks, so it's easier to have this sort of resistance.
If you were in the US, I'd recommend ING Direct. I think HSBC and possibly other banks have a similar program (online-only banking with good Web access and savings rates), but I don't know about them or whether they're accessible in your location.
posted by tellumo at 11:31 PM on March 5, 2010
This depends on a certain resistance to transferring from savings to checking, of course. I keep my main savings and checking accounts at different banks, so it's easier to have this sort of resistance.
If you were in the US, I'd recommend ING Direct. I think HSBC and possibly other banks have a similar program (online-only banking with good Web access and savings rates), but I don't know about them or whether they're accessible in your location.
posted by tellumo at 11:31 PM on March 5, 2010
Step 1. Open a 3-6 month term account with your current bank.
2. Set up an automatic transfer of $1200 from your current account into the term account that happens on the day after pay day, no later.
3. Create a budget based on your remaining money.
4 Make it a personal game to spend as little as possible.
5. If you have money remaining in your normal account after your monthly expenses and spending, transfer it to your term account.
6. Forget your family's spending habits. That is just an excuse to be a spender.
7. Start a new mantra: Being a grown up and taking responsibility for your future ishard fun.
posted by Kerasia at 11:36 PM on March 5, 2010 [4 favorites]
2. Set up an automatic transfer of $1200 from your current account into the term account that happens on the day after pay day, no later.
3. Create a budget based on your remaining money.
4 Make it a personal game to spend as little as possible.
5. If you have money remaining in your normal account after your monthly expenses and spending, transfer it to your term account.
6. Forget your family's spending habits. That is just an excuse to be a spender.
7. Start a new mantra: Being a grown up and taking responsibility for your future is
posted by Kerasia at 11:36 PM on March 5, 2010 [4 favorites]
Take cash with you and leave ATM and credit cards at home. Once it's gone, it's gone and you can't get more money until you get home. Alternate alcoholic drinks with water and/or just drink non-alcoholic drinks since they're much cheaper. Mooch whenever possible and with abandon.
posted by thorny at 11:43 PM on March 5, 2010
posted by thorny at 11:43 PM on March 5, 2010
Here's a great article on saving money. Just repeat to yourself: would I rather take a cab now or live on Ramen for years? Do I buy this cute sweater, or live on Ramen for years?
Ditto the automatic deduction idea. Learn to hate cabs: the more you spend, the more private the services are that you can afford, but the more you block yourself off from great experiences with locals--and it sounds like you might not be there forever. So perhaps you can think of it like embedding yourself more into your current country.
There are plenty of things to do with friends that don't require tons of money or shopping!
posted by blazingunicorn at 11:44 PM on March 5, 2010
Ditto the automatic deduction idea. Learn to hate cabs: the more you spend, the more private the services are that you can afford, but the more you block yourself off from great experiences with locals--and it sounds like you might not be there forever. So perhaps you can think of it like embedding yourself more into your current country.
There are plenty of things to do with friends that don't require tons of money or shopping!
posted by blazingunicorn at 11:44 PM on March 5, 2010
If going out with your friends is really important to you in life, then just focus on spending less when you do it - have fewer drinks at the bar, skip the popcorn at the movies, getting something cheaper and drink water at the restaurant. And prioritize by looking to save money in other areas. There's no need to cut out your social time to save money. However things like the shopping and frequent taxi rides are no good - you need to internalize the fact that you need to make some sacrifices in order to get what you want.
Also, if you've spent a lot shopping for expensive items in the past, see what you have that you can sell. Often a lot of the thrill of shopping is in the buying and the initial ownership of some coveted item, and this thrill wears off quickly. There are probably items you've bought in the past that you could now part with with minimal tears, and expensive brand name items can retain quite a bit of resale value. I personally made about $500 this past month just by selling a few expensive misc things that I figured I could do without.
posted by Diplodocus at 11:45 PM on March 5, 2010
Also, if you've spent a lot shopping for expensive items in the past, see what you have that you can sell. Often a lot of the thrill of shopping is in the buying and the initial ownership of some coveted item, and this thrill wears off quickly. There are probably items you've bought in the past that you could now part with with minimal tears, and expensive brand name items can retain quite a bit of resale value. I personally made about $500 this past month just by selling a few expensive misc things that I figured I could do without.
posted by Diplodocus at 11:45 PM on March 5, 2010
It's going to take some hard work and a lot of advanced planning to make it feel like you're not restricting yourself, but it's definitely possible to save some money, given the guidelines you've detailed. Here's some stuff that's helped me:
First, I'm not sure where you're doing your banking, but check to see if you can use Mint.com with them. Otherwise, chart your expenses in Excel. It really helps to be able to see where money is going, and you can identify the best places to trim the excesses.
Look at things you can easily cut down on. For example, drinking at home before you go out helps cut down on overpriced drinks at a bar or a restaurant. Bringing lunch, snacks and drinks to work or school helps a lot, so even if you're still going out to dinner with friends every night, at least your midday meal was cheap, and you didn't spend at the vending machines or cafes.
Shopping can be dramatically scaled back without you feeling its lack. The key is simply to not tempt yourself by going to the shops unless you need something specific -- no wandering, no window shopping, no hanging out at the mall. Next, don't buy anything that isn't extremely high-quality and long-lasting. If it's not a 10, don't get it.
Going by those principles has reduced my random shopping completely, and it's actually to my benefit, because I was buying a lot stuff I didn't actually need, on impulse. Now I tend to research more in advance, compare prices, and get good deals as a result. And when I do buy something, even if it's on an impulse, being so picky means I get something I love and will use for a long time.
Other things that have helped me -- try to get stuff used when possible. Again, not sure what your local resources are, but if internet shopping is an option, get your books used, or look for deals on Craigslist (or the regional equivalent). Ask your coworkers and neighbors for advice, because it often happens that someone will, for example, have a table and chairs they need to get rid of, just when you're in need of some.
I think taxis vs. bus will be a huge place where you can reduce. Just total up the amount you spend on cabs (+tip?) and compare. Maybe you can consider the bus rides as a bonus, since you have time to read, listen to music, etc.
posted by lhall at 11:45 PM on March 5, 2010 [2 favorites]
First, I'm not sure where you're doing your banking, but check to see if you can use Mint.com with them. Otherwise, chart your expenses in Excel. It really helps to be able to see where money is going, and you can identify the best places to trim the excesses.
Look at things you can easily cut down on. For example, drinking at home before you go out helps cut down on overpriced drinks at a bar or a restaurant. Bringing lunch, snacks and drinks to work or school helps a lot, so even if you're still going out to dinner with friends every night, at least your midday meal was cheap, and you didn't spend at the vending machines or cafes.
Shopping can be dramatically scaled back without you feeling its lack. The key is simply to not tempt yourself by going to the shops unless you need something specific -- no wandering, no window shopping, no hanging out at the mall. Next, don't buy anything that isn't extremely high-quality and long-lasting. If it's not a 10, don't get it.
Going by those principles has reduced my random shopping completely, and it's actually to my benefit, because I was buying a lot stuff I didn't actually need, on impulse. Now I tend to research more in advance, compare prices, and get good deals as a result. And when I do buy something, even if it's on an impulse, being so picky means I get something I love and will use for a long time.
Other things that have helped me -- try to get stuff used when possible. Again, not sure what your local resources are, but if internet shopping is an option, get your books used, or look for deals on Craigslist (or the regional equivalent). Ask your coworkers and neighbors for advice, because it often happens that someone will, for example, have a table and chairs they need to get rid of, just when you're in need of some.
I think taxis vs. bus will be a huge place where you can reduce. Just total up the amount you spend on cabs (+tip?) and compare. Maybe you can consider the bus rides as a bonus, since you have time to read, listen to music, etc.
posted by lhall at 11:45 PM on March 5, 2010 [2 favorites]
Kerasia is right, especially step 2. Pay yourself first is a good phrase to keep in mind. I'm very similar to you in my spending habits, and that was the only way I could develop any savings.
posted by beepbeepboopboop at 11:46 PM on March 5, 2010
posted by beepbeepboopboop at 11:46 PM on March 5, 2010
Look at things you can easily cut down on. For example, drinking at home before you go out helps cut down on overpriced drinks at a bar or a restaurant. I think taxis vs. bus will be a huge place where you can reduce. Just total up the amount you spend on cabs (+tip?) and compare. Maybe you can consider the bus rides as a bonus, since you have time to read, listen to music, etc.
Looks like the poster is in South Korea, so it's not going to be a huge amount. Taxis are cheap and there is no tipping. Drinks are cheap, too, or at least can be.
That said, I think this is a stupid question. It's not hard to save money in Korea, even if you're teaching English. You need to stop shopping, taking taxis, and going out so much. Spend your time learning the language. That'll keep you busy.
posted by smorange at 12:31 AM on March 6, 2010
Looks like the poster is in South Korea, so it's not going to be a huge amount. Taxis are cheap and there is no tipping. Drinks are cheap, too, or at least can be.
That said, I think this is a stupid question. It's not hard to save money in Korea, even if you're teaching English. You need to stop shopping, taking taxis, and going out so much. Spend your time learning the language. That'll keep you busy.
posted by smorange at 12:31 AM on March 6, 2010
Cook your own food. I saved money without even trying when I switched my eating habits and had to make all my own food. Even expensive ingredients (within limits) usually stretch out to several meals and save you money in the long run.
posted by slimepuppy at 12:57 AM on March 6, 2010 [1 favorite]
posted by slimepuppy at 12:57 AM on March 6, 2010 [1 favorite]
Yeah, the trick seems to be if you want to save money, stop spending it.
Easiest way is to automatically transfer a fixed percentage into a separate bank account (something without an annual fee, where you can basically dump money and forget about it). Once you are artificially restricted, you will feel much freer to spend what's left because you'll know what the absolute limits are and find ways to change your lifestyle as you go instead of making drastic changes to your social life just in the name of frugality (like, say, stop going out… which, let's be honest, doesn't sound like an option).
posted by Civil_Disobedient at 1:04 AM on March 6, 2010
Easiest way is to automatically transfer a fixed percentage into a separate bank account (something without an annual fee, where you can basically dump money and forget about it). Once you are artificially restricted, you will feel much freer to spend what's left because you'll know what the absolute limits are and find ways to change your lifestyle as you go instead of making drastic changes to your social life just in the name of frugality (like, say, stop going out… which, let's be honest, doesn't sound like an option).
posted by Civil_Disobedient at 1:04 AM on March 6, 2010
Cook your own food. I saved money without even trying when I switched my eating habits and had to make all my own food. Even expensive ingredients (within limits) usually stretch out to several meals and save you money in the long run.
Not necessarily in Korea.
posted by smorange at 1:14 AM on March 6, 2010
Not necessarily in Korea.
posted by smorange at 1:14 AM on March 6, 2010
What's your total monthly salary? Can you reasonably get by on that, minus the goals ($1800 with bills, school loans, and savings plan) you've set for yourself?
I was in sort of the same boat as you, just a couple islands over. Something to keep in mind: going out is a huge drain on your wallet. Especially in that, the more you drink, the less likely you are to make sound financial decisions. As above, leave your atm card at home. Go out less. I know it might be hard, but if you want to save money, that's going to help you in the long run. If you do go out, might I suggest pre-drinking to get a buzz? Or, as my friends and I used to do (and sometimes still do) step out of the bar that charges $6-8 a pint, and grab a beer from a convenience store (this is based on an assumption that Korea might bear something in common with Japan and China, that there are convenience stores that sell alcohol and are convenient). As the weather warms up, this gets a lot easier.
Cooking at home will save you a ton of money, as slimepuppy mentions. Food that keeps well scales fantastically. Make enough for a couple meals, and you've got lunch tomorrow, possibly dinner, too, for less cost than two separate meals at home would cost, and a lot less than dinner out costs.
And yeah, let your friends know. You don't hate them, you don't dislike them, but you've got to tone it down a little. See if they're interested in coming over and hanging out once in a while, rather than going out.
posted by Ghidorah at 1:15 AM on March 6, 2010
I was in sort of the same boat as you, just a couple islands over. Something to keep in mind: going out is a huge drain on your wallet. Especially in that, the more you drink, the less likely you are to make sound financial decisions. As above, leave your atm card at home. Go out less. I know it might be hard, but if you want to save money, that's going to help you in the long run. If you do go out, might I suggest pre-drinking to get a buzz? Or, as my friends and I used to do (and sometimes still do) step out of the bar that charges $6-8 a pint, and grab a beer from a convenience store (this is based on an assumption that Korea might bear something in common with Japan and China, that there are convenience stores that sell alcohol and are convenient). As the weather warms up, this gets a lot easier.
Cooking at home will save you a ton of money, as slimepuppy mentions. Food that keeps well scales fantastically. Make enough for a couple meals, and you've got lunch tomorrow, possibly dinner, too, for less cost than two separate meals at home would cost, and a lot less than dinner out costs.
And yeah, let your friends know. You don't hate them, you don't dislike them, but you've got to tone it down a little. See if they're interested in coming over and hanging out once in a while, rather than going out.
posted by Ghidorah at 1:15 AM on March 6, 2010
I second the recommendation of getting a savings account at a different bank (especially at one with a good interest rate like ING Direct). The inconvenience of waiting a day or two for funds to get from the savings account to the transaction account your credit/debit card is attached to could cut down on any impulse purchases or last-minute withdrawals in anticipation of a big night out, whereas getting a savings account with your current bank won't help much because transfers will most likely be instant.
And looking for cheap delicious places to eat in your city can be a fun exercise in itself! If they are BYO, even better -- why not grab a longneck/big bottle of beer from a liquor store to save yourself a cocktail later in the night!
posted by carnival of animals at 1:30 AM on March 6, 2010
And looking for cheap delicious places to eat in your city can be a fun exercise in itself! If they are BYO, even better -- why not grab a longneck/big bottle of beer from a liquor store to save yourself a cocktail later in the night!
posted by carnival of animals at 1:30 AM on March 6, 2010
(And have you considered moonlighting/getting a second job? As well as the income, it will cut down on your nights out and depending on the type of job, can be a great way of meeting new people too.)
posted by carnival of animals at 1:35 AM on March 6, 2010
posted by carnival of animals at 1:35 AM on March 6, 2010
Time to recommend an old friend of Metafilter, Save Karyn. She got herself into $20,000 of debt by buying too many clothes, taking taxis & guzzling expensive lattes. You only have to worry about the second (saving) half of her story. Previously on MeFi 1, 2.
posted by i_cola at 2:09 AM on March 6, 2010
posted by i_cola at 2:09 AM on March 6, 2010
Pay yourself first and do so in a way that is hard to stop and hard to get at the funds, such as auto-deposit on a far away bank with which you have no internet access etc.
Lose the credit cards.
Budget for you time out. Too little and you will cheat. Too much and you won't save enough.
posted by caddis at 4:10 AM on March 6, 2010
Lose the credit cards.
Budget for you time out. Too little and you will cheat. Too much and you won't save enough.
posted by caddis at 4:10 AM on March 6, 2010
Seconding doing the drinking outside of a pub, invite friends over or vice-versa.
Do your own cooking, watch the prices, but a big batch of pasta or rice is cheap.
Heck, in college I lived on mostly tea/coffee and toast with peanut butter.
Drop credit, it's a deep hole to sink into, while they leech money off you, then they get pissed-off when the balance which has accumulated from their interest doesn't get paid.
Pay your bills on time, ditch the services you don't really need.
Make sure you keep enough to pay rent and groceries.
Don't buy an expensive car if a $300 beater will get you around.
Track your money, once you stop doing that, and ignoring bills, things get bad.
If you need to, mooch off family, they should be willing to help. But don't push it too far.
posted by hungrysquirrels at 6:09 AM on March 6, 2010
Do your own cooking, watch the prices, but a big batch of pasta or rice is cheap.
Heck, in college I lived on mostly tea/coffee and toast with peanut butter.
Drop credit, it's a deep hole to sink into, while they leech money off you, then they get pissed-off when the balance which has accumulated from their interest doesn't get paid.
Pay your bills on time, ditch the services you don't really need.
Make sure you keep enough to pay rent and groceries.
Don't buy an expensive car if a $300 beater will get you around.
Track your money, once you stop doing that, and ignoring bills, things get bad.
If you need to, mooch off family, they should be willing to help. But don't push it too far.
posted by hungrysquirrels at 6:09 AM on March 6, 2010
When I first headed out into the real world I was pretty bad about money. I built up a sizable amount of credit card debt, I lived on the edge of my income. I wasn't really good about budgets.
How did I turn it around? I knew I wasn't inclined to budget every last cent. So I switched to a cash based system. I did a loose budget that covered rent, utilities, and some serious paying down of debt. I then added a little for savings. From this exercise I figured I would how much I could spend on food and fun. I withdrew this amount every week. So it was easy to tell if I could afford something, was it in my wallet? It was really immediate and tangible. I also developed this strange aversion to breaking a twenty dollar bill for a small purchase, so I often went without all those little things that ruin budgets.
It's years later now and I still pay myself an allowance, but I've developed enough of a good sense of money that I no longer rely on this as my sole way to budget.
posted by advicepig at 6:29 AM on March 6, 2010 [1 favorite]
How did I turn it around? I knew I wasn't inclined to budget every last cent. So I switched to a cash based system. I did a loose budget that covered rent, utilities, and some serious paying down of debt. I then added a little for savings. From this exercise I figured I would how much I could spend on food and fun. I withdrew this amount every week. So it was easy to tell if I could afford something, was it in my wallet? It was really immediate and tangible. I also developed this strange aversion to breaking a twenty dollar bill for a small purchase, so I often went without all those little things that ruin budgets.
It's years later now and I still pay myself an allowance, but I've developed enough of a good sense of money that I no longer rely on this as my sole way to budget.
posted by advicepig at 6:29 AM on March 6, 2010 [1 favorite]
If it supports the bank you're using, use Mint. Used regularly, it can really help you visualize how much you're spending.
(Do this along with having your savings automatically deposit into an account you can't easily access.)
posted by Solon and Thanks at 6:41 AM on March 6, 2010
(Do this along with having your savings automatically deposit into an account you can't easily access.)
posted by Solon and Thanks at 6:41 AM on March 6, 2010
The husband and myself pull $200 from the bank on payday and put it in an envelope. Debit account is only used to pay bills & mortgage, we aren't 'allowed' to use the debit card at stores. The $200 lasts the two weeks between paydays, and if we run out - we're eating noodles or rice until payday.
posted by Acer_saccharum at 9:12 AM on March 6, 2010
posted by Acer_saccharum at 9:12 AM on March 6, 2010
If you are indeed in South Korea then this question basically describes me in 2004, minus the grad school. I found it easy to send 1 million won (around $1000 at the time) "home" every month and live off the other half of my salary. You need to have a two bank sort of system. I got a Korean bank account and then transferred the money to my "home" bank every month and lived out of the Korean account.
I had the fortunate problem that my PIN code for my Canadian bank account was too long for all SKorean bank machines - my PIN was 6 digits long, and the machines would only accept a 4 digit PIN. I tried to change this over the phone with my Canadian bank but apparently you can only do that in person, in Canada. It effectively made me unable to withdraw funds from that account - this is what you need to do. You need to "spend" that money you are saving AS SOON AS YOU GET PAID and forget it exists.
As far as cutting back spending - you live in a wonderful land of cheap goods. It is possible to indulge your spending impulse but only spend a dollar. I have a marvelous collection of $1 knee socks bought on the sidewalk vendors in Seoul. A good sound investment for only $1! Now back in Canada I indulge the same impulse at the thrift store. I can get away with spending $0.60 and getting something "new", if I really feel like I need to buy some crap.
As far as food goes - gimbap is cheap, fresh steamed home made mandu is cheap (YUM!). Eat lots. Find one of those "corner" grocery stores - not the big Lotte markets. Try and eat like a Korean and not like a Canadian. I would have killed for a proper salad while I was there, but I managed to put together reasonable salad-like food involving cabbage, those massive carrots and cucumbers.
Stop drinking in the "foreign" bars. Corner store liquor is so cheap there you can buy 500mls of soju for $1! When you are out drinking and everyone goes out for food is where it can add up. But since you have been eating mandu and gimbap all week, you can splurge! Also, since it is the culture to share food, just go for the cheapest and split with everyone.
I saved up $8800 in a year - the first time in my life I saved more than a couple of hundred at a time. You can do it!
posted by smartypantz at 9:17 AM on March 6, 2010 [2 favorites]
I had the fortunate problem that my PIN code for my Canadian bank account was too long for all SKorean bank machines - my PIN was 6 digits long, and the machines would only accept a 4 digit PIN. I tried to change this over the phone with my Canadian bank but apparently you can only do that in person, in Canada. It effectively made me unable to withdraw funds from that account - this is what you need to do. You need to "spend" that money you are saving AS SOON AS YOU GET PAID and forget it exists.
As far as cutting back spending - you live in a wonderful land of cheap goods. It is possible to indulge your spending impulse but only spend a dollar. I have a marvelous collection of $1 knee socks bought on the sidewalk vendors in Seoul. A good sound investment for only $1! Now back in Canada I indulge the same impulse at the thrift store. I can get away with spending $0.60 and getting something "new", if I really feel like I need to buy some crap.
As far as food goes - gimbap is cheap, fresh steamed home made mandu is cheap (YUM!). Eat lots. Find one of those "corner" grocery stores - not the big Lotte markets. Try and eat like a Korean and not like a Canadian. I would have killed for a proper salad while I was there, but I managed to put together reasonable salad-like food involving cabbage, those massive carrots and cucumbers.
Stop drinking in the "foreign" bars. Corner store liquor is so cheap there you can buy 500mls of soju for $1! When you are out drinking and everyone goes out for food is where it can add up. But since you have been eating mandu and gimbap all week, you can splurge! Also, since it is the culture to share food, just go for the cheapest and split with everyone.
I saved up $8800 in a year - the first time in my life I saved more than a couple of hundred at a time. You can do it!
posted by smartypantz at 9:17 AM on March 6, 2010 [2 favorites]
Here's a pretty good budget template you can alter to suit your lifestyle
posted by gillianr at 9:26 AM on March 6, 2010
posted by gillianr at 9:26 AM on March 6, 2010
I completely suck at saving money. I'm very extroverted and love to go out with my friends several nights a week, I love shopping, and I prefer taxis over buses, so right now I have nothing in savings. Zilch. Nada. I know I have to stop doing these things, or somehow work around them so I don't feel lonely or like I'm restricting myself, but what other things should I be doing? How do I teach myself to save?
Stop associating shopping with happiness. I used to love going out buying new clothes all the time before I was unemployed for a few months a couple years ago, which was a big wake-up call to me on how I spend and my attitude about the stuff I already have. Turns out I actually already had a good amount of cool things that I could get recurring enjoyment out of and I didn't need all that new stuff.
So take advantage of what you already have, rather than looking for thrills in the things you don't have. If you don't own anything that you can enjoy using in your free time, like if all your spending is on stuff that you only get one use out of (like cab rides, dinner out, buying clothes you might only wear once or never), get yourself involved in some hobbies that involve maybe a couple purchases that will keep you entertained for years to come, like learning a musical instrument, getting involved in an inexpensive craft, having potlucks with friends at your place- stuff like that. You aren't restricting yourself, you're just having fun doing stuff that doesn't require so much spending, which is not a requirement for having fun.
"Shopping" shouldn't be something you do for fun, and it should not be a hobby; it should be something you only do when you need a specific item, not when you're bored or depressed and just want to do something. When you get out of the "buying stuff is fun!" mentality, the thrill of spending money on anything pretty much goes away. While I used to love buying new clothes, now my attitude is more like "Ugh, I need new clothes," and I only buy stuff I can get a lot of use out of.
And yes, it would really help for you to invest some of your energy in learning the local language. By having these attitudes of "I like to spend money and don't want to feel like I'm restricting myself" and "I can't talk to the locals because I don't know their language," you are already severely restricting yourself. Focus less on what you want right now and more on how to get what you want in the years to come, things that require concentration and effort to achieve, and this should get a lot easier.
posted by wondermouse at 9:57 AM on March 6, 2010 [2 favorites]
Stop associating shopping with happiness. I used to love going out buying new clothes all the time before I was unemployed for a few months a couple years ago, which was a big wake-up call to me on how I spend and my attitude about the stuff I already have. Turns out I actually already had a good amount of cool things that I could get recurring enjoyment out of and I didn't need all that new stuff.
So take advantage of what you already have, rather than looking for thrills in the things you don't have. If you don't own anything that you can enjoy using in your free time, like if all your spending is on stuff that you only get one use out of (like cab rides, dinner out, buying clothes you might only wear once or never), get yourself involved in some hobbies that involve maybe a couple purchases that will keep you entertained for years to come, like learning a musical instrument, getting involved in an inexpensive craft, having potlucks with friends at your place- stuff like that. You aren't restricting yourself, you're just having fun doing stuff that doesn't require so much spending, which is not a requirement for having fun.
"Shopping" shouldn't be something you do for fun, and it should not be a hobby; it should be something you only do when you need a specific item, not when you're bored or depressed and just want to do something. When you get out of the "buying stuff is fun!" mentality, the thrill of spending money on anything pretty much goes away. While I used to love buying new clothes, now my attitude is more like "Ugh, I need new clothes," and I only buy stuff I can get a lot of use out of.
And yes, it would really help for you to invest some of your energy in learning the local language. By having these attitudes of "I like to spend money and don't want to feel like I'm restricting myself" and "I can't talk to the locals because I don't know their language," you are already severely restricting yourself. Focus less on what you want right now and more on how to get what you want in the years to come, things that require concentration and effort to achieve, and this should get a lot easier.
posted by wondermouse at 9:57 AM on March 6, 2010 [2 favorites]
Oh yeah, and since you're in South Korea, you should learn how to cook Korean food. That could be really fun to do with friends also, and I imagine very cheap to get a lot of the ingredients based on what smartypantz posted.
posted by wondermouse at 10:01 AM on March 6, 2010
posted by wondermouse at 10:01 AM on March 6, 2010
Get the book The Tightwad Gazette (preferably a used copy- check Ebay). It is full of alot of tips that may or may not apply to you, but the overall message is that the author takes joy in saving; finding every little way to save a couple pennies is a hobby and a fun game for her.
Yes, you need to set a hard budget too, you need to figure out your worst offenses (drinks and shopping? you won't know for sure unless you set up Mint or you tally your card statements). But you also need to get over the idea that you need to spend money to have fun. You can make a game out of being cheap, and hopefully the book will give you some inspiration.
posted by slow graffiti at 10:16 AM on March 6, 2010
Yes, you need to set a hard budget too, you need to figure out your worst offenses (drinks and shopping? you won't know for sure unless you set up Mint or you tally your card statements). But you also need to get over the idea that you need to spend money to have fun. You can make a game out of being cheap, and hopefully the book will give you some inspiration.
posted by slow graffiti at 10:16 AM on March 6, 2010
Thirding (n-th-ing?) the 'pay yourself first' idea. It's the only saving method that's ever worked for me.
It sounds like you've done your budget already, and know you can save $1200 a month. So don't put yourself through some kind of willpower test just to prove you can cope - no-one will give you any gold stars for it, and you probably won't save as much as you should.
Just auto-transfer that $1200 out of your account right after pay-day, into a separate high-interest account that doesn't allow you to have a debit card, credit card or whatever and charges enormous fees for withdrawals.
That way you can spend whatever's left, being frugal or not, knowing that your savings are all tucked away for later. If you find that your budget wasn't accurate, and maybe you need more money for bills, or end up with lots left over each month, you can adjust the amount you're transferring. But you should be able to last 6 months without any problems.
posted by harriet vane at 1:04 AM on March 7, 2010
It sounds like you've done your budget already, and know you can save $1200 a month. So don't put yourself through some kind of willpower test just to prove you can cope - no-one will give you any gold stars for it, and you probably won't save as much as you should.
Just auto-transfer that $1200 out of your account right after pay-day, into a separate high-interest account that doesn't allow you to have a debit card, credit card or whatever and charges enormous fees for withdrawals.
That way you can spend whatever's left, being frugal or not, knowing that your savings are all tucked away for later. If you find that your budget wasn't accurate, and maybe you need more money for bills, or end up with lots left over each month, you can adjust the amount you're transferring. But you should be able to last 6 months without any problems.
posted by harriet vane at 1:04 AM on March 7, 2010
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Do you keep a tally of your savings? Like in a notebook that you keep with you? Set reasonable quotas and if you meet the quota, you're done saving for the month. That might help you skimp in other ways that you hadn't seen before.
posted by circular at 11:14 PM on March 5, 2010