No one wants to be compared to the one and only Carrie Bradshaw when it comes to money, however I think that sometimes you and I have made some poor money-related decisions. Let us be honest with ourselves here, everyone has regretted buying something in their life and was right to do so. It might not have been shoes, but it most likely was something meaningless and completely useless. Something Greta Thunberg would probably shun you for.
If you were not already aware, Carrie Bradshaw, the main character in ‘Sex and the City’, loves to spend all her money on shoes. Very expensive, hard to wear, beautiful shoes. She seems incapable of saving and is shown to be constantly at the mercy of her own bad financial decisions.
So here is my advice to you. If you feel like sometimes, you don’t really know where your money has gone or maybe you don’t really know how to “properly” and sensibly spend it...
Excel is your bestie.
Excel, yes that mundane Microsoft application enables you to keep track of your monthly/ weekly spending in a simple, clear way. It’s a much-needed powerhouse tool. Search “Excel tutorial for beginners for expenses” and you will find what you are looking for if you don’t know exactly how to work it out.
If technology is not for you, there are other ways to keep track of your spending. At the start of every month write down what you need to spend (e.g. tube fare, food, stationery) and then write down what is left of your monthly budget. You can then choose to save some of it or spend it on things (you should write down what you want to spend it on to keep yourself on track like new shoes or going to watch a movie). If you have a goal, then you should aim to save a set amount of money every month. This will help you reach your goal and be more in control of your spending.
At the end of each month, recall what you spent and separate it into two boxes; money spent on essentials (no, I'm sorry, but going to McDonalds is not an essential) and money spent on unimportant items. Then think to yourself, did I really need that Big Mac? Couldn’t I just have made myself packed lunch and saved that money for later? This way you can think back to your spendings which will make you an even smarter spender in the future.
A common issue within the world of personal finance is telling yourself, “Well I don’t do X nor buy Y so, therefore I can’t possibly be as bad off as this other person, so I don’t need to change anything.” In reality, you probably are spending a huge budget on something else that you failed to realise was a big deal; that might be makeup, coffee or alcohol. A coffee on average costs £3.50. If you buy three coffees a week that comes down to £10.50 which is a huge expense in the long run. Imagine how much money you could save by bringing your own instant coffee mix and making it in one of the school kitchens.
However, there is no one-size-fits-all answer to how people should be spending their money but, in this economy, Carrie needs to shape up and think really hard about if she really needs those new Manolo Blahnik shoes.