How to Make More Money (Without a Raise)

*Not financial advice - your money, your choice*

I just moved (well a bit ago because I wrote this a bit ago but you get the idea)!

And it's been a bit stressful. Not only has my free time been eaten up by moving but I’ve been exercising less. I’m like a dog, I need to be run or I’ll sh*t on the white shag carpet. A couple of months ago my (former) roommate talked about future living plans because our lease was expiring in September.

For reference, a studio in newer buildings in Seattle, where I live, can cost around $2,000 a month. If you are super lucky and can find a deal, some 1 beds start at $1,800 a month and I was currently paying $1,100-1,200/mo for half of a 2 bed, 2 bath with utilities and wifi (a steal!).

That said, I am not stoked about having my rent go to $1,800/mo especially when my income pre-tax is $6,666/mo (no, that’s not a 😈 joke). One of the rules that are talked about a lot in personal finance is that people would be wise to avoid spending more than 28% (or 30% depending on who you ask) of your Gross Income and after utilities. I’d be on that line so, not stoked.

*Gross Income = Income Before Tax & Tax Deductions, Net Income = Income after Tax & Tax Deductions

What to do?

Move someplace more expensive (without a raise I may add), or… move back in with my Mom and Step Dad for no rent; a very popular choice for Gen Z/Millennials. I’ll chip in for food expenses and help where I can and buy replacements for stuff I break; pretty clumsy tbh usually break a wine glass on accident, no big deal. Also, accidentally broke an espresso cup and massage gun (replaced the latter, first has a few duplicates).

This option is especially good if you're looking to get a down payment together to buy something because the real estate market is going...

So, naturally, I chose to move back in with my parents. Being 24, I figured I would get bonus family time, it was pretty socially acceptable, and the right financial decision!

Of course, this isn’t an option for everyone...

It may be that you know a friend who has a spare bedroom you could rent - this would 1000% be my first choice.

Example: You’ve got 2 friends who you'd be compatible roommates with (similar cleanliness and life habits) but if that didn’t work you could look for houses with a bedroom for rent OR look for a deal on a studio.

Last month, I did some financial planning once at the beginning of the month and then proceeded to throw all caution to the wind. I spent a lot more than usual on things like eating out, buying camping gear, and getting stuff for an upcoming 3 week Europe trip. My roommate and I also needed groceries so I made a list and he went and did our $450 Costco run.

As a result of this ‘higher than normal’ spend, I went to pay rent and "Sh*t!"

After I paid it, I only had about $70 left in my checking account. I didn’t do the math on my spending!

If you’re anything like me, you like eating and cooking at home but that $70 for 2 weeks of spending miiiiiiiight be more than stretching it.

Looking at my numbers further, I had put an extra $250 into my savings from my checking account - this is normally what would be left for those 2 weeks of eating out and going to Starbucks.

I took that extra $250 and put it back into checking - another mistake! When we take money out of a savings account, our brain starts to tell us ‘that’s okay’ and that bucket quickly becomes spending money. Not good for money psychology. If your brain works similarly to mine, if you see it in checking then you are much more likely to spend it! (I spent it and don't even remember on what)

Note to self: Stick to letting your automated money flow do its thing and don't move money between accounts.

I’ve had lots of conversations with people who do budget and don’t budget and I’ve found that while budgeting is a good first step, it rarely solves the problem around overspending. Many people, myself included, often go ‘over budget’. In this sense, budgeting does not work.

Most companies with financial professionals managing money usually go over budget at some point for God’s sake! The part of budgeting that is good is that it helps you become aware of the categories you tend to spend your money in and paired with an automated savings plan can pay huge returns.

I love spending on dining out and on travel. My past spending reflects that so I plan my future spending accordingly.

I don’t give a rip about a daily coffee from a cafe or super fancy ingredients for cooking (good quality is irreplaceable though) so I relentlessly cut spending there.

You might love cooking with fancy ingredients (saffron, steaks, etc.) and love a daily coffee from a local cafe but hate eating out. Everyone is different. Spend on what you love, cut without any mercy on what you don’t care about.

To track my money, I use MINT. It’s pretty intuitive and easy to understand (even for an Apple user). You Need a Budget (YNAB) is better if you’re more experienced with managing your money but YNAB isn’t as fun to look at.

• MINT is freeeee while YNAB is $5 a month

• MINT is owned by Intuit which also owns Turbo Tax so you can track your tax refund (yawn - I know)

• Both MINT and YNAB link to your accounts even if they are at different banks/institutions

• They also have bill reminders (but I just have autopay set up)
  

Here’s a look of what MINT can show you! Pretty colors!

Some banks also have built-in tools so you may already have access to a great one!

I’ll get deeper into how to build a forward-looking budget in another article so, download MINT to start and become aware of your spending categories! *not sponsored*

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