Wednesday, March 31, 2010

The trials and tribulations of personal finance


So today is the last day of the spending freeze. Although I had to break the rules a little (birthdays, bridesmaid stuff, etc.) and had a meltdown midway through, spending too much at Victoria's Secret, I thought I did really well avoiding the temptation of shopping for the past three months. But regardless of how well I did or didn't do, I still feel like I have learned some valuable lessons about money management and when to spend and when to save. I also came to appreciate the things I already own. I was forced to create outfits from what I already had in my closet on Friday nights and the results were often surprisingly good.

Moving forward, I came up with three questions I must ask myself before I make a purchase:

1. Is this something I truly need and have been planning on buying or is it an impulse buy?

2. If it is on the pricier side, is it classic? Will it last season after season?

3. If it's something trendy, is it worth taking a chance on? Is it a piece that can be paired with other pieces that are already in my wardrobe or would I have to buy additional pieces and parts to make it work?

And I can't end this post without saying the best rule of personal finance, "Don't spend what you don't have" (ie, credit cards are bad!).

(Photo via Nordstrom)

3 comments:

Valerie said...

WOW, 3 months of no shopping?? I'm so impressed! I should try that. I need to be more conscious of my spending and your 3 questions are perfect. I'm going to try them out next time I have a "shopping breakdown" as I like to call them. xo

Christina said...

Haha good! I hope they help! Let me know the results!

The Neo-Traditionalist said...

I seriously need to take your advice! My life is in great need of a spending freeze...ugh. Being in the middle of nowhere in West Virginia has definitely been good on my wallet though I still at times go on online sprees. Thank you so much for the birthday wishes! You are too sweet. I assure you any perceived maturity is deceiving, I'm very much your average 24 year old! XOXO Katie

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