get what you want

Is Your Workout Worth the Cost?

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IS your workout worth it image

Nowadays there is always a new gym opening, or new fitness fad. As a person who really enjoys working out, I have spent a lot of money on fitness related classes and events over my lifetime. From traveling to run marathons, to flywheel spin classes, to barre and pilates. I’ve tried them all and more!

To a lot of people, the thought of spending $150/month to exercise is ridiculous and they could never justify it. In the Seattle area, outside of joining a standard gym, it’s hard to find a workout class or group that is less than this-some are much more. After years of paying a lot of money to workout and hire coaches for marathons and triathlons, I finally stopped because I didn’t want the expense. Instead I joined LA Fitness for $35/month. I loved the savings I was getting but wasn’t happy with my motivation. I find it so easy to workout when I’m training for a race or have a group class to go to, but heading to the gym after work by myself to do the treadmill and weights just isn’t motivating. Over the past 8 months, I’ve hardly made it to the gym and notice a difference in the way I feel about myself.

When I’m not working out consistently I’m less patient, and just not as happy overall. I’m pretty frugal in most aspects of my life and stick to my budget each month, but working out is something very important to me. I made the decision to cancel my $35/month gym membership since I’m not using it anyway, and signed up for a boot camp class that costs more. I don’t really want the added expense but if it makes me more focused at work, a better wife, and happier with myself I think it is completely worth it.

It all goes back to picking and choosing what is most important to you. In choosing to pay for a more expensive workout I continue to bring my lunch every day, and I don’t impulse spend.

Do you spend money on a gym or fitness membership, and do you feel like the money is well spent?

Why I Love My Credit Card

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Why I love my credit card image

I applied for my credit card (only one!) when I turned 18 and had an initial credit limit of $600. In 2007, it was pretty easy to qualify for a credit card- even as an 18 year old heading off to college in the fall with no income. Things changed slightly after the financial meltdown, and by 2010 my 18 year old brother couldn’t qualify for a credit card for anything! Because I got my credit card at 18, I started building credit history a full three years before someone who had to wait until they were 21 and three years makes a big difference.

By the time I was 25 and my husband and I were ready to buy a house, I had a credit score above 800 and a lot of history built up- time was on my side. I know a lot of people that still today don’t have the credit history to get a loan on a house with the best interest rates available.

Frequent flyer miles are just an added perk. I use my Alaska Airlines card for everything from groceries to monthly utilities and I’ve been able to take many free flights using miles I have earned. From a trip to Chicago to run the Chicago Marathon, to my honeymoon in Europe, most of my recent trips have been covered by miles I have earned just paying my monthly living expenses- if only I could get miles for my monthly mortgage payment!

Credit cards aren’t for everyone. If you’re someone who can’t control your spending, credit cards probably aren’t for you. My husband and I stick to a budget, and pay off our credit card each month so running up debt isn’t worrisome to us. A lot of people see their credit limit as “free money” (someone actually told me this once!) and spend until their card is maxed out. Then they’ll pay it down a little, and spend to the max again. This is a HORRIBLE idea. You will end up paying so much in interest and will never get out of debt if this is your philosophy. I do however think if you’re a responsible spender, credit cards can be a good thing.

4 Tips For Creating A Budget

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Tips for creating a budget

Creating a budget (and sticking to it) is the best way to start saving money, however it can seem overwhelming for those who don’t know where to start. Below I have some tips for how to create a seamless budget.

  • Look at your previous month’s spending. Pull all bank statements, debit card, and credit card transactions to see where you spent your money last month. This will help guide you in planning your budget for next month. I prefer to download my statements into excel and categorize each of them. E.g. water, sewer, electric, and gas would all fall under “utilities”. I then sum up each category so I can see how much I am spending on groceries vs eating out or entertainment. This is usually how my sheet ends up looking (note- these are not actual numbers, I just made them up):

 

Details $ Spend Category   Category Sum Total
Movies $22.50 Entertainment   Entertainment $159.02
Gas $110.00 Utilities   Utilities $110.00
Rent $2,000.00 Rent   Rent $2,000.00
Shopping $100.00 Entertainment   Groceries $275.00
Groceries $125.00 Groceries      
Dinner Out $36.52 Entertainment      
Groceries $150.00 Groceries      

 

  • Follow the 50/20/30 rule for easy budgeting. This is a great way of thinking for someone creating their first budget. You should aim for 50% of your budget to be directed toward your fixed costs. This include rent/mortgage, utilities, car payments, gym memberships, and everything else you pay for monthly that doesn’t fluctuate much in cost. 20% of your take home pay should go toward savings and long terms goals. That includes contributing to your 401k, building your emergency fund, and making additional payments (beyond what is required per month) on debt. 30% of your take home pay should be spent on lifestyle choices. I mentioned gym memberships in fixed costs, but many would also consider this to be a lifestyle choice. Groceries and other expenses that change from month to month fall under this category. If your monthly fixed costs are taking more than 50% of your take home pay, you need to reevaluate how you’re allocating your pay check. Do the math with your own take home pay. If you make $3,000/month, no more than $1,500 should go toward fixed costs, $600 toward savings and long term goals, and $900 toward lifestyle choices.

 

  • Start creating your budget. Now that you know how much you tend to spend each month, and how much of your take home pay you should be spending on each category, it’s time to put pen to paper. I prefer to do my budgeting in excel because I can manipulate it anyway I want. There are of course great tools out there as well to help you create a budget like Mint, but I find it just as easy to create an excel spreadsheet. When you’re just starting out with your budget, it also forces you to keep a closer eye on what you’re buying. For example, if I go to target and buy both clothing and groceries, I can look at my receipts and add them to the appropriate category instead of just labeling them entertainment OR groceries.

 

  • Track your budget. Once your budget is created, make sure you’re tracking your budget. I look at my spending at least three times a week. My husband would say I’m obsessed, and I get it, not everyone is going to look at their budget that often but I do encourage you the first month to pay very close attention to your spending and how you’re tracking to your budget. If one area is coming in over (your car breaks down or you have another unexpected expense) try to pull money away from your lifestyle budget and not your savings and long terms goals if you can. If you’ve never followed a budget before it might seem difficult but I promise if you stick to it for a few months it really will become second nature.

 

Good luck and Happy Saving!

A

How To Get What You REALLY Want By Saving

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Thanks to Millennial Money Man for allowing me to write a contributing article. He has a similar story to mine, and has great advice for millennials looking to get out of debt.

Friends are always asking me how I paid off my student loans so fast, paid for part of a wedding, and saved enough money up to buy a home. I’m a big believer in what I call, “conscious spending”. I truly believe no matter how much money you make there is opportunity to save more.

I was making $30,000 a year at my first job post college. I was working for a startup and made friends quickly because most of us were under the age of 25. One thing that stood out to me was the amount of money people were spending. Most of my new friends were making under $40,000 a year and spending money like they made $100,000. Starbucks coffee and breakfast EVERY morning, followed by lunches out resulted in a minimum of $20/day spent on food WHILE at work.

That’s $400/month and doesn’t take into account the after work happy hours and dinners out!

 

While I was unhappy with how little money I was making, I was bringing my lunches and drinking the free coffee at work. It allowed me to put about $1000/month toward my student loans as well as put $300/month into my house savings fund.

I continued to work hard and eventually moved companies where I received a larger pay increase. At this point, my loans were paid off and I started putting more money into my home savings fund as well as putting a little bit away for my wedding.

By the time I turned 26, I had paid off $22,000 in student loans, saved $10,000 for my wedding, and $79,000 for our house down payment and closing costs. Had I spent money frivolously, I wouldn’t have accomplished all of these goals in four short years.

I did take several vacations after college, but I saved for them, I didn’t charge them on my credit card. I also enjoyed going out to dinner with friends or shopping occasionally, so I am not suggesting you give up everything you love.

You have to be purposeful in your spending.  What is it that you really want? Do you enjoy your $5 coffee that much, and your lunches out? If so, great, that is what YOU ARE CHOOSING to spend your money on because it is important to you. But if you want to save for that house or whatever it may be, you need to comb through your finances and see where you can cut back.

Happy Saving!

My husband and I at a WSU football game post graduation
My girlfriends and I wine tasting at my Bachelorette party

 

 

Money Matters

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How you spend your money matters. Whether you’re making $40,000 or $100,000 we all make choices about the way we spend our money. I believe our relationship with money often comes from our parent’s relationship with money. When I was young, my parents opted for expensive daycares and private schools to give my brother and me every opportunity they never had. Could my parents afford  private school? Hardly. They did it because they felt it was best for us, but at the end of the month there was not much money left over and it wasn’t as if they were spending it on themselves. My parents worked hard over the years to put themselves in a good position financially, and I believe all of this has to do with the way I view money today. It’s this view that causes my husband to often call me the “fun police”. I have big goals and am always looking ten steps ahead.

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After  college graduation I knew exactly what I wanted. I wanted to start paying off my $22,000 in student loans, save for  a wedding and a house. So, I did it. In 2011, I was 22 years old, living with my parents, putting $300/month into a home savings account, and working away at my student loans. Before you assume I was working some high paying job, I better set the record straight. My first job, post-college graduation, was for a Seattle  merchandising startup making $30,000 a year. I was working 60+ hours a week, and had very little to show for it. In April of 2012, I was promoted, which included a pay increase to $37,000 a year. Over the next year, I had several other (small) pay increases and continued saving and reducing my student debt.

In May 2013, I got engaged. My husband and I decided to put our wedding off until September of 2014 so we could save. In December of 2013, I made my final loan payment. I had also been looking for a new job and was hired by a larger Seattle company. At that point, I received a larger pay increase.While it would have been easy to spend more money since I was making more, I stuck to saving for a house and our upcoming wedding. We received help from our families for the wedding, but still had to come up with $10,000 on our own. By September 2014, we were able to save the money and celebrate our marriage debt free, which was an amazing feeling.

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Once the student loans were paid and the wedding was over, there was only one thing left; our house. If you’re familiar with the current housing market in Seattle (or many other places throughout the country) you know that a lot of properties are going for $100,000 or more ABOVE list price. In the area we were looking, there was nothing available below $450,000. We put in four total offers and looked for seven straight months. Every weekend was spent at open houses and multiple weekdays found us walking through homes throughout Seattle. My husband works nights, so I would go walk through them after work and if I liked them, I would bring him back to look at them the next day. If I knew they weren’t a contender, I didn’t even bother. It was a stressful process but in the end we ended up where we wanted to be. In June 2015, we closed on our house. We had saved enough to have the necessary $79,000 (down payment and closing costs) needed for our home.

What do I know? I know my goals.  I tend to drive my husband crazy because when I get an idea in my head, I won’t stop until I get it, and when I graduated college, I had three big money goals: loans, wedding, house. At the age of 26, I’ve accomplished them all. Now that we are in our home, we’ve set a new goal to beef up our savings before we decide to start a family. I am constantly fielding questions from friends and family about my savings plans. The goal for this blog is to inform them, and other young people, how you can really get what you want in life by making smart money decisions. But my best advice is simply to know what you want and don’t stop until you get it.

Happy savings!

A