Chic Money Life

Tag: financial-independance

10 Practical Spending Rules I Actually Follow

Simple habits that help me shop smarter and save more (without feeling deprived)

My natural spending tendencies used to swing wildly between two extremes—overdoing it and depriving myself of everything. It never felt good to feel guilty for spending too much money, and it never felt good to feel so deprived of small, simple pleasures. I wanted balance.

So, I created a set of personal rules—guidelines that would give me back control over my spending and my finances. I wanted to be mindful of waste and unnecessary purchases, while still allowing space to enjoy life. These small, practical habits help me spend more intentionally and feel better about where my money goes.

These are my real-life spending rules. They’re not rigid or extreme—just small ways I avoid waste, reduce impulse spending, and stay more in control.

1. If it doesn’t fit, it doesn’t come home.

I’m petite and have always had a hard time finding clothes that fit. In my younger days, I’d say, “Oh this is good enough,” and buy things that really weren’t flattering. No surprise—those pieces ended up buried at the bottom of my closet.
Now, I only buy clothes that fit me well and make me feel good right now. I’ve found that I shop less often because I actually love what’s in my wardrobe.

2. I wait before buying something new.

If I’m tempted to buy something non-essential—especially things I didn’t even know existed until five minutes ago—I give myself at least a week to think it over.
This helps me ask: Is this just really good marketing? Was it a mood thing? Or will it truly add value to my life?
Most of the time, I don’t even think about it again.

3. I don’t overbuy—even when it seems like a “better deal.”

This mostly applies to food. I hate wasting food. I used to buy in bulk thinking I was saving money, but when I didn’t use it all, it cost me more in the long run.
Now I focus on buying the right amount. It helps me stay organized, reduces food waste, and keeps me from spending on things I won’t actually consume.

4. I only buy clothes on sale.

With a little patience, most things I like go on sale eventually. I rarely buy anything full-price unless it’s essential and timeless. This simple rule has saved me a lot over the years.

5. I search before I buy.

Before checking out online, I take a minute to search Google or check for promo codes. It’s a quick step that’s helped me save money many times—like the $100 I saved on my Garmin watch!
A few clicks can go a long way.

6. I don’t buy “just in case” items anymore.

I used to buy things I might need someday. But most of the time, I didn’t—and those purchases just became clutter. Now, I trust that if I really need something, I’ll handle it when the time comes.

7. I budget for joy.

Fun spending is part of a healthy financial life. I make sure there’s room in my budget for small joys—coffee with a friend, a weekend adventure, or a cozy new sweatshirt.
When it’s planned, it feels better—and guilt-free.

8. I spend based on my real life, not my fantasy life.

I’ve stopped buying for the version of me that “might host more dinner parties” or “might start going to yoga five times a week.”
Now, I spend based on how I actually live—not how I wish I lived.

9. I keep a capsule wardrobe.

I’ve created a small collection of clothes that mix and match easily, fit well, and work for my real lifestyle.
A capsule wardrobe saves me time, prevents decision fatigue, and helps me avoid trendy purchases that I’ll never wear.

10. I stay organized so I can see what I already have.

Whether it’s food or clothes, staying neat helps me avoid buying duplicates or wasting what I already own.
If I can’t see it, I’ll forget I have it. So I try to keep my pantry and closet simple and easy to navigate—it saves me money and stress.

Final Thoughts

Smart spending doesn’t have to be complicated. These simple habits help me save money, reduce waste, and feel more content with what I have. The best part? None of them require a spreadsheet or a sacrifice—just a little pause and purpose.

What spending rule has helped you the most? I’d love to hear it in the comments.

June 15, 2025
How Compound Interest Can Work for You (or Against You)
Compound interest is often called the eighth wonder of the world—and for good reason. It has the power to grow your money over time without any extra work from you. But if you’re not careful, it can also grow your debt just as fast.

Understanding how compound interest works can help you build wealth, stay out of debt traps, and feel confident making long-term financial decisions. It’s one of the most important tools you have on your financial journey.

What Is Compound Interest?

Compound interest means you earn interest on both your original savings and on the interest that’s been added over time.
- Simple interest = interest only on the original amount
- Compound interest = interest on the original amount plus accumulated interest
In short, your money makes money—and then that money makes more money. The earlier you start, the more time your money has to grow.

And the best part? You don’t have to do anything extra. Your money literally starts working for you.

How Compound Interest Can Impact Saving Just $100 a Month

Let’s say you invest $100 a month starting at age 25 in an account that earns 7% annual interest, compounded monthly. Here’s what that could grow into:
- Age 35: ~$17,000 – You saved $12,000 and earned $5,000 in interest
- Age 45: ~$51,000 – You saved $24,000 and earned $27,000 in interest
- Age 55: ~$116,000 – You saved $36,000 and earned $80,000 in interest
- Age 65: ~$240,000 – You saved $48,000 and earned $192,000 in interest
All from just $100 a month!

Now imagine you waited 10 years and started saving at 35 instead of 25—you’d only have around $120,000 by age 65. That’s half as much, just from starting later.

The earlier you start, the more time compound interest has to work its magic. At a certain point, your interest earns more than you contribute—that’s the beauty of it. All you have to do is consistently set money aside and let compounding do the rest.

When Compound Interest Works Against You

Credit card debt is the dark side of compound interest. Many cards charge 20%+ interest and compound it daily. That means if you carry a balance, you’re paying interest on interest, which makes it much harder to get ahead.

Example:
A $5,000 credit card balance at 22% interest—if you only make minimum payments—could take over 15 years to pay off and cost you thousands in interest.

YIKES!
This is why credit card debt should be treated like a financial emergency. Go into bare-bones budget mode until it’s paid off. It’s nearly impossible to make progress if you’re being charged 22% interest. That’s higher than almost any investment return you could find. Paying off high-interest debt is often the best financial return—even if it doesn’t feel exciting.

How to Use Compound Interest to Your Advantage

Start Now—Even If It’s Small
Don’t wait for the “perfect time.” Small amounts invested consistently add up. The best time to start was 20 years ago; the second-best time is today.

Automate Your Savings or Investments
Set up automatic transfers into a high-yield savings account, Roth IRA, or investment account so you don’t have to think about it.

Avoid Carrying High-Interest Debt
If you’re paying compound interest on debt, your money is working against you. Focus on paying that off first.

Reinvest Your Earnings
In investments like ETFs or retirement accounts, let your dividends or interest reinvest. That’s how compounding keeps building over time.

Final Thoughts

Compound interest is one of the most powerful tools in your financial toolkit. It rewards patience, consistency, and time. Whether you’re building savings or getting out of debt, understanding how compound interest works will help you make more intentional and impactful money decisions.

Start where you are—and your future self will thank you.
June 15, 2025
What’s Your Money Personality?
Take the quiz to learn more about your money habits

We all approach our finances differently. Have you ever wondered why your approach to money differs from your friends or family? Some of us are natural savers. Others love the thrill of a good deal (or a good splurge). And many of us are just trying to find balance. Understanding your money habits is the first step to making intentional, healthy choices with your finances.

Take this quick quiz to find out your money personality—and get practical tips to work with your strengths and shift any habits that might be holding you back.

Quiz Questions:

Keep track of how many A’s, B’s, C’s, and D’s you get!

1. When you get paid, the first thing you do is:
- A) Automatically move money to savings
- B) Pay bills and check what’s left
- C) Buy something you’ve been eyeing
- D) Don’t really think about it until later
2. How do you feel about budgeting?
- A) I love it—it gives me peace of mind
- B) I use one loosely, but I’m not strict
- C) I find it restrictive and boring
- D) I’ve never made one
3. You see a flash sale online. What do you do?
- A) Ignore it—if it wasn’t already in the plan, it’s a no
- B) Check your budget to see if it fits
- C) Add to cart!
- D) Buy it and figure out the rest later
4. At the end of the month, you usually feel:
- A) Proud of how you managed your money
- B) Mostly fine, but could be better
- C) Wondering where your money went
- D) Surprised you’re out of cash
5. Your idea of financial freedom is:
- A) Early retirement and a well-funded future
- B) Paying your bills comfortably with room for fun
- C) Being able to do what you want, when you want
- D) Not worrying about money or planning too much
6. When it comes to saving for the future, you:
- A) Have clear goals and track your progress
- B) Put something away when you can
- C) Haven’t started—too many other priorities
- D) Feel overwhelmed and avoid thinking about it
7. Your biggest financial fear is:
- A) Not being prepared for emergencies
- B) Not earning enough to enjoy life
- C) Missing out on experiences
- D) Dealing with debt or unexpected bills
8. How often do you check your accounts?
- A) Weekly or more
- B) A couple times a month
- C) When I need to buy something big
- D) Rarely
9. If you got an unexpected $1,000, you would:
- A) Save or invest it
- B) Split it between savings and fun
- C) Spend it on something you want
- D) Use it to catch up on bills or wing it
10. Money, to you, feels like:
- A) A tool for stability and freedom
- B) Something to manage wisely
- C) A means to enjoy life now
- D) A source of stress or confusion
Mostly A’s – The Intentional Saver

You’re disciplined and future-focused. You track your money, plan ahead, and find comfort in structure. Saving is second nature to you—but don’t forget to live a little, too.

Strengths: Clarity, planning, consistency
Watch out for: Over-restriction or guilt about spending

Action Tips:
- Create a “fun fund.” Set aside a small % of your income each month just for spontaneous joy—dinner out, a new book, or a weekend trip.
- Automate your investing. Look into apps like Acorns or Fidelity Spire that grow your savings passively.
- Review goals quarterly. Make sure your money still aligns with what you actually want—not just what you think you should want.
- Treat yourself to tools that support your mindset. Like a sleek money tracker or a values-based planner.
Mostly B’s – The Steady Balancer

You’re a thoughtful manager—you aim for balance between enjoying life now and planning for the future. You’re doing well but could benefit from a little more structure or automation to stay consistent.

Strengths: Flexibility, realism, good instincts
Watch out for: Drifting off track or decision fatigue

Action Tips:
- Use the 50/30/20 rule as a baseline: 50% needs, 30% wants, 20% savings/debt.
- Automate your savings or debt payments. It reduces mental load and helps you stay on track.
- Do a monthly money check-in. Set a recurring calendar reminder to review your spending and reset your goals.
- Try a budget app. Something low-lift that can help you stay organized without being overwhelming.
Mostly C’s – The YOLO Spender

You live in the moment—and that can be amazing! You’re generous and fun-loving, but impulsive spending might be keeping you from long-term freedom. The key is to build structure around your spending so you can still enjoy life without regret.

Strengths: Passionate, adventurous, generous
Watch out for: Living paycheck to paycheck or buyer’s remorse

Action Tips:
- Build a “Joy Budget.” Allocate guilt-free fun money on purpose—so you get to enjoy it without blowing your plans.
- Try a cash envelope system. Set limits for things like eating out or Target runs.
- Track your spending for just 30 days. No shame—just awareness.
- Set short-term goals that excite you. A weekend getaway, a new outfit, a concert—then start a separate savings jar
Mostly D’s – The Financial Free Spirit

You don’t love rules or routines when it comes to money—and that’s okay. But even a little structure can make a huge difference. You don’t need a rigid budget, just a few intentional habits to get started.

Strengths: Easygoing, open-minded, creative
Watch out for: Avoidance, disorganization, last-minute panic

Action Tips:
- Pick ONE habit to start with. Like checking your account every Monday or tracking your expenses for one week.
- Use visuals to stay motivated. A savings thermometer, a goal tracker, or sticky notes on your mirror can help.
- Build micro-routines. Like logging into your budget app after your morning coffee—make it part of life.
- Focus on values, not numbers. Ask: “What do I want my money to do for me?”—and build a simple system around that answer.
I tend to fluctuate between an Intentional Saver and a Steady Balancer, depending on what’s going on in my life. When I’m in full-on “Intentional Saver” mode, I can get really anxious about spending money—even on things I’ve already budgeted for. That stress isn’t helpful (we all have enough to worry about!). That’s why I like to create separate budget categories for things like fun, self-care, or family time—so I can spend with intention and peace of mind.

What about you? Drop a comment below and let us know your money personality—and one habit you’d love to improve. Let’s learn from each other!

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June 8, 2025
Post 5: How to Build a Budget You’ll Actually Stick To
Part of the “How to Get Started Managing Your Personal Finances” Series

Why It Matters

A budget isn’t a punishment—it’s a plan. It helps you make sure your money goes toward the things that matter most. Whether you want to stop living paycheck to paycheck, save for a big goal, or simply feel more in control, a budget is the foundation for intentional living. But for it to work, it has to fit your life and support your goals.

Step 1: Know What’s Coming In

Start by figuring out your monthly income.
- Include all reliable sources: paychecks, side gigs, support payments, etc.
- If your income fluctuates, use a three-month average to get a clearer picture.
Step 2: Track What’s Going Out

Look at what you actually spend in a typical month.
- Use your bank or credit card statements to identify patterns
- Categories to consider: housing, groceries, dining out, subscriptions, childcare, transportation, etc.
- This ties back to what you did in Post 2—understanding your spending
Step 3: Build the First Draft of Your Budget

Break it down into categories:
- Fixed Expenses (rent, utilities, insurance)
- Debt Repayment
- Variable Expenses (groceries, gas, entertainment)
- Savings
- Unexpected Expenses (car repairs, gifts, etc.)
Tip: If possible, include a “life happens” cushion to give your budget some breathing room.

Step 4: Choose a System That Works for You

Your budget won’t help if you don’t use it. Choose a format that feels easy to maintain.
- Apps like YNAB, EveryDollar, or Mint
- Spreadsheets (Google Sheets, Excel)
- Pen and paper
  There’s no one right way—just the one you’ll actually stick with.
Step 5: Make It Sustainable
- Start simple—don’t try to perfect it all at once
- Review weekly or monthly and make adjustments as needed
- This step is key: If you set a budget but never track or update it, you may be missing your goals entirely
- Give yourself grace—overspending one month isn’t failure, it’s feedback
Closing Thought

A budget is your roadmap. It’s not about perfection—it’s about progress and intention. When you build a budget that reflects your real life, it becomes a tool for freedom—not frustration.
June 3, 2025
How to Tackle Credit Card Debt
Related to Post 3 in the “How to Get Started Managing Your Personal Finances” Series

Why It Matters

Credit card debt can feel overwhelming—like you’re stuck in a cycle you can’t escape. The high interest rates, minimum payments, and constant stress can make it hard to breathe, let alone plan for the future. Credit card debt is its own monster. The interest rates they charge if you do not pay the full balance are predatory.

But you are not powerless. No matter how big the number, you can take control of your debt. The goal isn’t just to pay it off—it’s to regain peace of mind and create a life with more freedom and fewer financial emergencies.

Let’s walk through the steps.

Step 1: Stop Adding to the Debt

If you’re serious about getting out of debt, the first step is to stop using your credit cards.
- Remove them from your wallet
- Delete them from Apple Pay
- Unsubscribe from shopping emails that tempt you to spend
Set yourself up to succeed by removing the daily triggers.

Step 2: Get Clear on the Numbers

Make a list of:
- Each credit card you have
- The current balance
- The interest rate
- The minimum monthly payment
Yes, it might feel scary. But seeing the full picture gives you the power to make a plan.

Step 3: Create a Bare-Bones Budget

This doesn’t have to be forever—but for now, cut your spending down to the essentials:
- Housing
- Groceries
- Transportation
- Utilities
The goal is to free up as much money as possible to start attacking your debt.

Step 4: Pick a Payoff Strategy

There are two popular strategies:

1. Debt Avalanche:
Focus on the card with the highest interest rate first. You’ll pay less in interest over time.

2. Debt Snowball:
Pay off the smallest balance first. This gives you early wins and motivation to keep going.

Neither is “better”—just pick the one that works best for your mindset.

Step 5: Ask for Help (Really)

Call your credit card companies and ask:
- Can you lower my interest rate?
- Do you offer a hardship program?
- Can you waive late fees?
You might be surprised—many companies are willing to work with you if you’re honest and proactive.

Step 6: Consider a Balance Transfer or Debt Consolidation

If you have decent credit, a 0% APR balance transfer card could give you time to pay down your debt without interest.
Or look into a debt consolidation loan to combine all your credit card balances into one monthly payment at a lower rate.

But be cautious: these only work if you’re committed to paying them off before the promotional period ends!

Step 7: Increase Your Income (Even Temporarily)

Even an extra $100 a month can make a difference. Consider:
- Freelance or gig work like pet sitting, babysitting, or Instacart
- Selling unused items around the house
- Asking for extra hours at work
Every dollar helps build momentum.

Step 8: Stay Consistent—and Be Kind to Yourself

Getting out of credit card debt isn’t just a math problem—it’s an emotional journey.
You might mess up. You might feel discouraged. That’s okay.

What matters is that you keep going. And don’t forget to reward yourself along the way.
If you have multiple debts, celebrate each time you knock one off your list! It takes time and dedication, but the faster you address your debt, the better.

Keep your long-term goals in front of you to stay motivated (remember those goals I asked you to think about in Post 1?)

You deserve to feel free from the weight of debt.
This isn’t about being perfect—it’s about progress. And every single payment is a step toward the life you really want.
May 27, 2025
How to Tackle Your Debt (Without Losing Your Sanity)
Post 3 in the “How to Get Started Managing Your Personal Finances” Series

Why It Matters Debt can feel like a heavy weight on your shoulders—something you try to ignore—until the bills are due or your credit card is maxed out. But it doesn’t have to be that way. Getting out of debt isn’t just about numbers—it’s about creating space to breathe, make choices, and stop feeling stuck.

You’re not alone. Many of us carry debt, whether it’s from student loans, credit cards, or unexpected life events. What matters is how you respond once you see the full picture.

First: Build a Small Emergency Fund Before you dive headfirst into paying off debt, it’s important to create a small financial safety net. Why? Because life will happen—cars break down, kids get sick, jobs shift. If you don’t have any savings, you’re more likely to fall back on credit cards and undo your hard work.

💡 Start by saving $500 to $1,000 in a separate savings account. This doesn’t have to happen overnight. Even $20 a week adds up. Once you have that mini emergency fund in place, you can focus more confidently on paying down debt.

Step 1: List All Your Debts Create a simple list of:
- Who you owe
- How much you owe
- The interest rate
- The minimum monthly payment
You can use a notebook, a spreadsheet, or a budgeting app—whatever feels simple and sustainable for you.

If you have a lot of credit card debt, I made a post to specifically address this, see it here.

📋 Tip: This step isn’t about judgment. It’s just about getting a clear picture.

Step 2: Choose a Strategy That Works for You There are two popular methods to pay off debt:

1. The Snowball Method
Focus on your smallest debt first, while making minimum payments on the rest. Once that’s paid off, roll that payment into the next smallest debt.
→ Great for motivation and quick wins.

2. The Avalanche Method
Focus on the debt with the highest interest rate first to save more over time.
→ Most efficient financially, though it may take longer to feel progress.

🎯 Choose the one that keeps you going. There’s no one “right” answer—only what works for your mindset.

And keep in mind—not all debt is bad. For example, if you have a mortgage with a 3.5% interest rate, it usually doesn’t make sense to rush to pay it off. You’re often better off investing that money and potentially earning a 7% return over time.

Step 3: Find Extra Money to Pay Toward Debt Now that you’ve tracked your spending (remember Post 2?), look for expenses to cut or reduce. Cancel an unused subscription. Eat at home one more night a week. Sell something sitting in your garage.

Decide what small sacrifices you’re willing to make now to reach your long-term goals. For me, this looked like working out at home instead of in a gym, not buying new clothes for a while, learning how to cook at home instead of eating out, and shopping around for cheaper car insurance. Knowing where my money was going allowed me to strategize the best ways to redirect it.

Every extra dollar counts. Even $50 extra per month can knock down your debt faster than you think. If you have a $35,000 car loan at 8% interest over five years, you’ll pay about $7,580 in interest alone—that’s 22% of the total loan amount! But every extra payment you make reduces the interest you’ll owe and speeds up your progress.

Step 4: Build in Accountability Staying motivated is tough. Here’s how to stay on track:
Use a visual tracker to see your progress

Celebrate every debt you pay off (yes, even small ones!)

Tell someone your goal or check in monthly with a partner
Real Talk: This Takes Time—And That’s Okay You didn’t accumulate this debt overnight, and you don’t have to fix it overnight either. But with a plan, support, and steady action, you will make progress.

Reflection Prompts
- What would being debt-free allow you to do or feel?
- Which debt weighs on you the most emotionally?
- What’s one small change you could try this month to free up extra cash?
May 26, 2025