Basics

Welcome to the Basics page where I give you a break down of rules I follow about all things money. This will be a bit of a long post but I wanted one page where I can share some very important information everyone should know. Remember, living a glam life is not about spending the most or having expensive things — and its definitely not about going into debt to do these things! It is about living a luxury life with what you have and having enough money in the bank for the future.

Here are a few rules I follow:

1. Never pay full price. Wherever possible buy things on sale or at least get extra points or gifts-with-purchase. 
2. Never spend money you do not have – this includes not paying off your credit cards!
3. Only buy things you need – I used to buy a lot of unnecessary items. Now I focus on buying good quality items that will last a long time.
4. If you want to buy things that are not a necessity, make sure all your basics are covered first (see basic budget below).
5. Always save for a rainy day.
6. Do not spend more than you make.
7. Quality over quantity! 

My Basic Budget

Before spending your hard earned money on material items, it is important you are financially stable.  You must be able to cover your basic expenses before spending a penny on anything else. Here is a list of items that you must have enough money for before even thinking about spending on anything else.

1. Housing – Make sure you have enough money to cover your rent/mortgage each month. Try to keep your housing budget to less than 50% of each pay check. 
2. Food – You should set a budget for weekly groceries and a small budget for eating out with friends as a treat once in a while.
3. Transportation – whether this be car payments or your bus pass, being able to get around is important.
4. Other vital expenses – tuition, cellphone bill, loans etc.
5. Retirement savings – you should be putting away 5% to 10% (more if you can) of each pay check and investing it for your future.
6. Emergency fund – enough to cover the above expenses if anything ever happens to your job. You should have about 3-6 months pay set aside.
7. Fun – you can use the left over money after all your expenses are covered for vacations, shopping or anything else your heart desires.

Let me know if you are interested in a more detailed post on budgeting and saving.

I will go more into detail on some of these items on my blog in the lifestyle category as I feel it is time everyone took control of their money and be able to live a glam life without struggling.

XOXO

-D