By looking at one week of Issy’s spending, we can see that if she’s doesn’t get a handle on her food budget, there will be no savings for her this month.  Like so many of us, Issy’s monthly variable expenses are adding up quickly and literally eating up a big chunk of money!

Issy confided in me that her goal is to save $100 per month.  Until she can earn more, she’s willing to cut back on certain treats in order to reach her goal.  Issy already has a frugal head on her shoulders, but it will still be a challenge when it comes time to make a sacrifice…

Issy and I sat down and analyzed her set costs as well as her “can’t live without” expenses and came up with Issy’s Personal Budget.  Note that there is a Monthly & an Annual column in her budget.  Even if you have expenses that only come up a few times a year (haircuts, wardrobe buys, travel, furniture, etc.) it is important to account for them in your annual budget.  If you divide that number by twelve, you will know what you need to put away each month in order to have enough when you’re ready to make that purchase.

Looking at Issy’s variable expenses, the good news is she can easily make small changes to reach her goal of $100 savings a month!  Believe it or not, even on a budget of $22,000 a year, it is possible to live in NYC – and still save for your future!

Our friend may feel like she is just spending a few bucks here and there to treat herself to lattes, etc, but it really adds up over the course of a month.  If Issy can stop buying bottled water (hello – she has filtered water at her office anyway!) that’s a savings of $20 per month right there.  Instead of buying 5 lattes a week, if she makes coffee at home and treats herself to one purchased latte per week, she saves about $40 more dollars a month.  In addition, if Issy eats out one night less a week and brings the leftovers to the office the next day for lunch, she can save an additional $40-$60! –We’re not even going to adjust her spending on wine right now because with all she’s dealing with, let’s face it – she deserves a nice glass of vino and then some!

Just by becoming more aware of her spending patterns and making some relatively painless adjustments, Issy will be able to save 5+15+30+50 – voila- $100 per month!  As Issy has learned firsthand, that once you put all your expenditures in writing, it becomes much easier to see what you have and what can be…

No matter if you’re 22 or 72, minting money or struggling to get by, we can all benefit from tracking where our hard earned dollars are going.  We at Fab & Fru look at tracking our expenses and budgeting as exciting tools in your journey to achieve your dreams, rather than a depressing and intimidating part of everyday life.  Check out our CALCULATORS in our Finance Section of the site to help you organize your own personal budget!

We’ll check back with Issy soon and see how she does with her new budgeting know how. Good luck Issy!

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