Life File #4

EXERCISE 13.5 how fiscally fit are you?

1. At any given moment in time, I know the balance in my checkbook… never true of me.
2. I use my credit card for particular types of purchases only such as gas or food… always true of me.
3. I pay off my credit card bills in full every month… always true of me.
4. I know the interest rate on my credit card… sometimes true of me.
5. I resist impulse buying and only spend when I need things… sometimes true of me.
6. I have a budget and I follow it…sometimes true of me.
7. I put money aside to save each month… never true of me.
8. When I get a pay raise, I increase the proportion of money I save… never true of me.
9. I keep track of my spending on a daily or weekly basis… always true of me.
10. I don’t allow myself to get pressured by other into buying things I don’t really need… always true of me.

EXERCISE 24.6 create a spending log

TIME ITEM LOCATION AMOUNT REASON
7-8a.m. ---- --- --- At home sleeping
8-9a.m. gas Costco $26.00 Running out and have to get to school.
9-10a.m. ---- ---- ---- In class
10-11 a.m. Coffee and cookies College cafeteria $4.00 I’m getting kind of hungry and I’m falling a sleep
11a.m.-12 p.m. ---- ---- ---- In class
12-1 p.m. Graphing paper I need it for one of my classes.
1-2 p.m. groceries Wal-Mart 60.00 Need more food for the rest of the week.
2-3 p.m. ---- ---- --- I am at home doing homework
3-4 p.m. --- ---- ---- I am still doing homework
4-5 p.m. Milkshake Burger king 4.00 I want it as a reward for doing homework
5-6 p.m. --- ---- ---- At home watching TV.
6-7 p.m. ---- ----- ---- At home
7-8 p.m. Rented movie Block buster 3.50 I want some entertainment
8-9 p.m. --- --- ---- At home watching the movie
9-10 p.m. Pizza Papa johns 15.00 Was hungry
10-11 p.m. ---- ---- --- sleeping
11-12 p.m. ---- --- ---- sleeping

* I spent about $112.50 in a normal or average day.


1. Are you as fiscally fit as you'd like to be? What areas are you best at? Where can you improve? How can you improve these areas?
Regarding to my money I think I manage it carefully but I would like to be able to save more money and have some buck up for any kind of emergency. Anybody would rather be an expert in finances and economy but the truth is that we all have many thing to learn and we are also victims of the economy in whole because if the country is in a bad shape we all are. Right now I am not being able to save any money because I am in college and I leave by myself which is more expensive than if I was with my mom. I am good managing my credit card and paying it on time, because I want to build my credit history and have good credit for my future plans, the only thing I have to learn how to do is keeping my checkbook more organized and balanced. I can do this by taking my time and writing everything down every time I spend money, sometimes I do not do it because I am in a rush or I do not want to keep the people waiting on line or anything like that.

2) What do you find that you spend most of your money on in an average day? Are these necessary expensives or unnecessary ones? (In other words - are they needs or wants?) For the unnessary ones, how could you cut these expenses down? How much do you think you could end up saving each day by making these changes? Each week? Each month? etc.

While I was making this chart of what I spend on an average day I found myself typing things that at some point seem to be necessary but if I stop for a second and think about it I don’t really need to spend my money on them. There are many things for entertainment or food that I don’t really need such as rented movies, pizza, milkshakes, or trashy food. But I also have necessary expenses like my weekly groceries or supplies for school or gas, this are elements that I need to live. For the unnecessary things such as food I can always go home and make something, or pack my lunch for school or work and buy goodies at the groceries store with my weekly groceries that way I am not going to find myself going to burger king to get a milkshake or stuff like that, this can also cut down in my gas expenses, for entertainment I can find a good movie on TV or a show I like instead of renting a movie or going to the movie theater, I can get with my friends and play video games or board games.