Sunday, March 27

Nerd Sundays #005: Girl Economics

I was going to blog about something totally different this week but I thought this is something way more important than electronics or make-up. People always ask me how I have the money to spend the way I do so I decided to share my system with you guys. This isn't really for girls, it applies to everything but I noticed that most of the things I spend my money on (i.e. clothing, make-up, random useless shit) is girl orientated so there you go!


An old photo of me with glasses to fit the mood!
 I hate how I look with any glasses >.>
  PAY ATTENTION!!

The first thing I have to say about spending is that, whatever your money is worth today, it is worth less tomorrow, and even less the day after that. This sounds kind of simple and elementary, but most people don't think about that when they shop or pay their bills. For example, if you have taken out a student loan with a ridiculously low interest rate, you should actually prolong paying it till the very end of your education because the amount that is due is actually less in the future than the present (even with the interest)! This is why 0% APR on cars is such a steal. That twenty grand is going to depreciate in value and will actually be less than twenty grand in the future. If you have the opportunity, you should never pay for large investments all at once.

 (Things you should spend money on: make-up, make-up remover, vitamins, food, etc.)

People save money on things they shouldn't be saving money on and spending money on things that will have less monetary value the minute they walk out with it. An example of this is make-up. I spend a good amount of my paycheck on make-up because I use it frequently and buying a ton of make-up now, will save me money due to inflation in prices later on. However, if you don't use make-up frequently, this might not apply to you as make-up does have an expiration date. Another example are things like tweezers, hairspray, lotion, basically anything that you will use often. You should actually buy WAY MORE of these things.

How much should you stock up on? Well, I'm not telling you to fill your whole closet with deodorant and eating utensils. The amount of "stuff" you should have, should be enough that it doesn't clutter your living space. A lot of females I know actually have WAY TOO MUCH STUFF.



This is something else that should be taken into consideration. If you have things you don't use, won't use for another six to twelve months, toss it or donate it. You don't know how many bags of clothing I have given up to friends, sold, or donated to Goodwill. These things are deadweights, meaning they are taking up space for potential new items and do not serve any purpose. Think about it in a business perspective; If you own a clothing store and you have items that don't sell, not only are you losing money on your investment, you are also losing space where other clothing items COULD sell more. Simply put, these items in your room are not adding any additional value to your life and should be gone!

Now onto things you should not spend so frequently on. CLOTHING (which includes accessories and shoes) is the number one item on my list. Except for certain niches like shoeheads or lolitas, clothing decreases in value the minute you walk out with your new purchase. How do you combat this? First off, buy cheaper clothing. I'm not telling you to never spend more than 10 dollars on a shirt but if you see items you want to buy at a store, think about the span of its lifetime -- the frequency of its wear, how much money it will take to clean it, and the price. If you think hard enough, most of the time you will put what you have in your hands down.

THE SHORT VERSION!!
1. Buy more of what you need right this moment (WAY MORE OF IT)
2. Throw away the things you won't use within 6-12months.
3. Don't invest a lot of your money in items that will depreciate in value (i.e. clothing, magazines, etc.) unless you are an enthusiast (that way it adds more value to your life).
4. Your money is ALWAYS worth less today.
5. If you can get out of ridiculously high interest rates, you should pay for your things in the future (i.e. loans, car, house).

As a woman, I know we all love to spend money and buy things. So instead of spending large amounts of money on clothing, spend it on other equally satisfying items such as sexy underwear, hairspray, make-up, socks,  etc.

I have so much more I wanted to say but I wanted to shorten it so it won't bore anyone

Until Next Time,
Mint

11 comments:

  1. Wow.. O_O can I hire you to do my finances? Or well.. When I GET finances, will u fix 'em for me? XD hahaha <3

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  2. wow, you've inspired me to shop less and be less of a hoarder. hehehe

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  3. I love this post so much! I have been mostly doing it backwards with clothing and make up. But recently, I actually decided to stick with basic shirts for the summer and grab a few accessories to mismatch with them. And I DID consider stocking up make up, lotions, toiletries, etc before college started, so I don't have to worry about not having money for it later.

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  4. Is that foxtail on the floor? I want foxtail, where you bought it?


    selmasdeco.blogspot.com

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  5. This post actually makes a lot of sense to me. I still have clothes in my drawers from middle school. Why, I have no fucking clue, because I'm at least 4 sizes bigger now, so I really should toss those! I also have tons of mascara sitting around from over a year ago @___@ I don't use them, but they just sit there and !-keep me from buying new ones-! My mom's always on my back about spending money, and how I should save... my bf's complete opposite. He got an iPad 2, 3DS, and about 3 or 4 games all in one week. I always thought I shouldn't spend so much on makeup because the investment wasn't as good compared to what my boyfriend buys, but I use it everyday... clothes, you're not gonna wear the same outfit everyday unless you're a talking aardvark with glasses *teehee*, and each wash = more breakdown of the clothing (ugh, can't word that right), did that make sense? haha So I think I know what you mean~I'm gonna try to remember all this and see how it works for me. Thanks for sharing! :)

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  6. One question though, what advice can you give about credit cards? Like, 2k and under? xD

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  7. @Nani OMG NO IM SO BAD AT ACCOUNTING -tear tear- i just like econ because its easy! its like algebra :3

    @Amanda THATS GOOD! people horde things because they think they paid a lot for it and it will come to good use one day. that is totally not the case.

    @Charlene. Remember to buy what you need make-up/toiletries wise! I mean if you buy four eyeliners only to switch brands then that is just gonna sit in your room ):

    @Kaizo Thanksss!

    @Selma My boyfriend bought it for me. It was only like five ten bucks or something in Hong Kong.

    @Katie Mascara supposedly expires yearly anyways (if you wanna stretch it LOL) I actually think games are really worth it. You get hours of entertainment, graphics, and gameplay for thirty to sixty dollars. I mean, watching a movie for one and a half hours is already ten bucks! Well credit card wise, just pay off every thing on time to keep your credit score good. NEVER MISS A PAYMENT. If you do, pay it off PLUS all the late fees immediately. People always get stuck in this endless black hole regarding credit cards because they miss a couple payments and it gets SO bad that they open a new credit card to pay off the old debt. This cycle repeats forever and ever until you declare bankruptcy. Sad but it happens!

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  8. @Katie ALSO! If you are looking into CDs, DON'T! At the rate the economy is sinking, right now is not the time to put ANY money in a CD account because the rate of inflation is actually higher than the interest rate the CD will give you. You would only be losing money if you put it in a CD account right now. Plus, you`ll never be able to move your money for a year or two or... five

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  9. Wow... this post was so insightful!! I am so glad I read it! (: Thank you so much for your wisdom, and even in your comments! ^^

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  10. @Nani OMG NO IM SO BAD AT ACCOUNTING -tear tear- i just like econ because its easy! its like algebra :3

    @Amanda THATS GOOD! people horde things because they think they paid a lot for it and it will come to good use one day. that is totally not the case.

    @Charlene. Remember to buy what you need make-up/toiletries wise! I mean if you buy four eyeliners only to switch brands then that is just gonna sit in your room ):

    @Kaizo Thanksss!

    @Selma My boyfriend bought it for me. It was only like five ten bucks or something in Hong Kong.

    @Katie Mascara supposedly expires yearly anyways (if you wanna stretch it LOL) I actually think games are really worth it. You get hours of entertainment, graphics, and gameplay for thirty to sixty dollars. I mean, watching a movie for one and a half hours is already ten bucks! Well credit card wise, just pay off every thing on time to keep your credit score good. NEVER MISS A PAYMENT. If you do, pay it off PLUS all the late fees immediately. People always get stuck in this endless black hole regarding credit cards because they miss a couple payments and it gets SO bad that they open a new credit card to pay off the old debt. This cycle repeats forever and ever until you declare bankruptcy. Sad but it happens!

    ReplyDelete

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