#And the deposit is as much as rent. So I'm essentially going to pay 2 months of rent upon moving in

[shima-draws]

By thee way I am planning on reopening commissions soon! I’m moving out in a couple months so I need to start saving up for the cost of that plus the deposit and all that fun stuff. So keep an eye out ;)

[chaifootsteps]

I don't want to condone this, but I recalled a year or two ago there was this thing, I don't think it was kiwifarms, but it was doxing vivzie and all of her family. Essentially, it was her dad's parents that were the immigrants, but they worked their way up and then her dad worked his way more up and married her mom who already came from a privileged background. Her dad's side apparently owns alot of businesses I think like washaterias and they rent out several houses. Not just that, but they were able to make a lot of connections, so Vivizie always had the resources for her art. So yes, Vivizie came from a very privileged background and was spoiled senseless. I'm honestly not shocked she's screwing over her employees since usually the owners of small businesses do the same exact shit too. I remember researching a small business and it was a towing company. Yeah, tell me why they were paying someone $15 when the state minimum wage is $7.25 yet the company only had one employee and racked in over $300,000 in revenue. I say one employee since it was owned by a family and only 2 other members barely did anything like the deposit for the bank. I'm pretty sure Vivizie makes so much revenue/money from her YouTube channel and patreon, but ofc she's going to underpay her employees while she goes on her lavish vacations and spends her money on dumb shit. Ok, sorry.

Thanks for this extremely important information, Anon. Doxing's not okay, but there's no harm in knowing about all of this in a general sort of way, especially if Vivzie's going to lie her ass off.

[riverageleis]

You know how mental health personnel and 'Good vibes only' types talk about how negative self-talk isn't good for you. Well, I have a story about that. 😐

For nearly a year now, I have been (essentially) gaslighting myself financially without realizing it. I'm going to preface my next sentence with this: I'm part of the working poor. I'm above the poverty level, but hardly 'middle class'. I have a slightly better than average job (C+? B?), but not double the state minimum wage, which isn't saying much. I also live in one of the poorest parts of the US, so this is going to sound like I have more than I have (and probably that I'm ungrateful, which I'm not).

I have 4 bank accounts, 2 checking and 2 savings. Both savings combined have 1k in them, give or take on any one day. 1 checking account is JUST for my car payment, and 1 savings is JUST for vehicle insurance. (4 accounts probably make a little more sense now) I digress. 20% of my paycheck is direct deposited into my car account, so I never even see it. A little more than 20% more goes into my insurance account. That's more than 40% of my money JUST for 2 big monthly bills every 2 weeks. My insurance savings gets my insurance premium almost x2 monthly. I'm paying the rest of my bills on 60% of my check. 60%. I've had myself CONVINCED for MONTHS that I've suddenly become bad with money and I was overspending on bullshit i didn't need. (I assure you, I NEEDED Moonie the Squishmallow) It was a vicious cycle of berating myself because I sucked with money, and it was depressing af.

So, anyway, my partner bought me some 'prosperity' oil and a candle of the same (because we're witches and sure, why not, everyone needs more good juju). Two days into wearing this stupid oil, because it smells so good, I open my car checking account (because it's almost time to write that check). Here's what happened:

I have this fucking revelation. My goal is to have 2 extra payments in that account, just in case. I had more. I have it in my head that my part of the rent is the entire amount, not half that, which it is. The REST of my bills are paid, and groceries bought on that 60%. I have SOMETHING left over when i get paid, even if it's $10. Suddenly, my bullshit finances and money management make more sense. I'm not suddenly sucking at money. I have about half of what I'm used to. I've fallen into the generational gaslighting of '$5 coffee and avocado toast'. I don't buy coffee every day, either... but I'm still doing, essentially, the same thing to myself.

Am I saying the oil helped me have this revelation? 😄 IDK. What I DO know is that sometimes we only think there's not enough to go around. Sometimes, there's NOT enough to go around. Either way, you're doing the best you can. Good job.

[rachelingly]

Why I Use Spending Funds

Today, I wanted to write about another personal finance practice that has been revolutionary for me - having a spending fund. Which takes what I love about a sinking fund and marries it to what I love in a savings account. 

Disclaimer: This post is merely for entertainment and education purposes only, not to provide financial advice. Literally, talk to an adult before you listen to me.

A sinking fund means saving x amount of money each month to reach a goal amount by a deadline. This method can be excellent for expenses like Christmas gifts or paying your car registration. But sinking funds and line-item budgeting really failed for me when it comes to unnecessary spending (eating out, entertainment, shopping, etc.) 

So voila, I introduced what I call a "spending fund."

The Problem

There are two main issues with using sinking funds and line-item budgeting for unnecessary spending. Firstly, for me, both methods fuel unconscious consumerism. When I use to line-item budget for unnecessary spending, I found myself looking for ways to spend the money because, hey, I budgeted for it! So I would spend the money allotted and then rinse and repeat the next month. When I tried to migrate my fun spending into a sinking fund, I struggled. Having separate funds for travel, food, clothes, etc., severely limited how ethically I could consume. Honey, have you tried buying anything from The Reformation with only $20 in your shopping fund? Ha!

My other qualm with both of these methods is the structure is susceptible to lifestyle creep. Having unnecessary spending as a line item in your budget usually means that more income = more spending. I don't think it is bad to enjoy your wealth as you gain it. 

The problem is that it is every. single. month. you are enjoying said "wealth". 

So in this structure, you actually aren't enjoying your newfound wealth, you are enjoying your newfound income. Very different.

The Solution

Behold- The Spending Fund!

What it is: 

A debit account separate from the checking account that receives my direct deposits. Specifically, I use the M1 Spend account that has a 1% APY and 1% cashback. The account is FDIC insured and comes with a debit card and no limit on monthly transactions

How I use it: 

I try to be a conscious consumer and extensively research and plan what I want to spend my money on ethically as possible. As a result, the items I want are typically more expensive. However, because I plan so much before I purchase something, I tend to not spend very often. I tell myself that the account can be used for any unnecessary spending at any time, with no limits. I don't have to spend it, but I can if I want. 

If I want sushi, I buy it. Rent a movie? No problem. Of course, I don't want to go crazy with it, but also I am not about to deny myself a $2 milkshake when it doesn't impact my bills, savings, or investments.

I don't have to work into my budget an impromptu lunch with a friend or wait until next month to buy a $6 e-book. I simply buy it. During the next budget set-up, I will attempt to replenish the fund up to the maximum amount. Sometimes that is $0, sometimes it is $50, and if it is more than that, I slowly replenish over the coming months. In the months when I don't spend anything, I am rewarded with interest. In the months when I decide to treat myself, I am rewarded with cashback. So it all shakes out really.

I have a maximum amount that I am allowed to hold in this account at any given time. The maximum amount I can have in this account increases each time I reach a financial milestone. For instance, my spending account started at $250. Then I saved a "Month Ahead Fund" and increased my spending power to $500. My next increase to $1000 will be until after my emergency fund is halfway funded. By increasing my spending fund this way, my spending power is not dependent on my salary but on what I'm��doing with my salary. What this essentially means that nothing over $500 is in my wheelhouse right now. Not for a trip, not for clothes, a concert, shoes, beauty products, nada. Everything I buy has to be less than or equal to $500. If something arises that is more than $500, the answer is either 'no' or 'I'll have to save for that.'

By excluding "just for fun" spending from my budget the only items that increase as my income increases is my savings and investments. This also helps remind me how unnecessary the spending is. We convince ourselves that spending X on going out, beauty treatments, or entertainment is critical to our well-being. But I think, in part, we only think that because we approach it in the same way we approach rent and utilities. We consider how much we spend on tequila and sweaters in the same instance we are considering how much we spend on electricity. At the start of the month, I don't allow myself to think about the things I want, only the things I need or that improve my financial health.

By relegating that sort of spending to a separate account, I am reminded that owning books, getting new stationery, or a new hairstyle is a luxury. Ones that, yes can brighten my day, but are by no means pillars to my well-being. Since using this method, I don't beat myself up for spending more than usual or too afraid to spend anything at all. 

Spending funds really work for me and maybe they'll work for you too!

[yournewapartment]

Tips on how to save money to afford an apartment? Let's say I want to start saving now and I have bills to pay. How can I incorporate saving for an apartment? (Note: I'm a junior college student who will have 2 part time jobs and plan on having a roommate when the time comes)

Hey! First, are you currently living in a dorm? Or at home? The tips don’t change much, but if you’re coming from home, it’ll likely be more of an adjustment because you probably haven’t been buying your own food and such.

In order to start saving for an apartment, first determine how much money you are earning monthly through your 2 part time jobs, and how much you spend per month on your fixed expenses, like food, bills, loans, car, phone, etc.

Once you have your fixed expenses, think about all the non-essential or non-fixed spending that you do per month. The easiest way to do this is to track all your spending per month in an Excel sheet or by using an app like Mint.com that connects to your credit card. Yes, it can be annoying to have to remember to write down your purchases for everything each month, and you likely will forget things, but it’s a great way to really see where all your money is going per month. Right after you spend something, write it down in a note on your phone or something similar, then add it to the Excel sheet later.  Mint makes it easier by automatically sorting your spending into categories like groceries, restaurants, clothes, entertainment, etc. If you like, this can help you see where you might want to cut down on non-fixed expenses like shopping, entertainment, and restaurants in order to increase your monthly savings.

Once you figure out how much “leftover” money you have after all your expenses, try to estimate how much your rent will be in an apartment in your area, with however many roommates you plan to have. Compare this to your “leftover” money. Then, you can reasonably see how much more saving you’ll need to do in order to afford rent! You can start saving this money in a new account, if it makes it easier for you not to spend it.

A few things to consider– when you first move into an apartment, you’ll need to budget a security deposit, which is usually 1.5x a month’s rent, and the first month’s rent, and they usually expect this in a check upfront. You’ll also have to buy furniture, bedding, cleaning supplies, cookware, and other things that you might not have already. So, definitely over-budget for your first few months by having some savings to spare!

Check out this post about living in a dorm vs. living in an apartment: http://yournewapartment.tumblr.com/post/163252113559/also-is-it-a-better-idea-to-rent-with-student

Good luck, and please, 2 jobs is a lot, make sure to give yourself time to rest!– Mimi