As a young adult who is still learning how to manage the financial aspect of life, I often search for sources with strong and achievable ways to help me better my spending.
Recently, I found a great resource for detailed money management: �Living the Savvy Life: The Savvy Woman�s Guide to Smart Spending and Rich Living,� by authors Melissa Tosetti and Kevin Gibbons. In author Melissa Tosetti�s own words, �It really is Living Savvy 101.�
Instead of addressing the usual problem areas such as spending habits or credit card debt, the authors cover the entire lifestyle of financial success in the form of a step-by-step, how-to reference guide. Each chapter has a specific focus such as home, entertainment, wardrobe, beauty, and food. The real value of this book comes from two very insightful theories: �The Golden Rule� and �Savvy Habits.�
Try to "spend less than you make" with this week's Spendaholics Anonymous from the CUI's Amanda Meek. Above, a copy of "Living the Savvy Life: The Savvy Woman's Guide to Smart Spending and Rich Living," by Melissa Tosetti and Kevin Gibbons. (CU Independent/Robert R. Denton)
As the authors Tosetti and Gibbons say in their book, �The Golden Rule of finance is: spend less than you make.� It may sound simple, but many people really struggle with this concept.
During an interview with author Melissa Tosetti, I questioned her about the relevance of this rule for college students. Her response was, �I believe it is important for everyone to follow this rule. When you spend more than you make, you get in this state of perpetual debt.�
Another important theory the authors introduce are the �Six Savvy Habits�, which are as follows:
- Pay yourself first
- Track your spending
- Pay all of your bills on payday
- Set financial goals
- Know when to invest and when to bargain shop
- Spend money on the things you want
All of these habits are vital to following the savvy life financial plan, but as the book states, �Studies show that it takes 30-45 days for an activity to become a habit.� So starting out with one or two habits and adding another one every month is a great way to begin the journey to financial freedom.
I was eager to learn which two habits to begin with. According to Tosetti, you should ��Pay All of Your Bills on Payday,� go to the grocery store, and if you have a car go ahead and fill your tank with gas. It�s un-sexy, it�s not fun, but it sure is going to make life a hell of a lot less stressful.�
In the description of how to �Pay Yourself First,� it also discusses the dreaded savings. As a college student who�s primary source of income is mom and dad, I questioned Tosetti�about the importance of saving while still in school.
�The goal is to ultimately get to that point [of saving 20 percent of your income] even if it takes five to ten years.”�she said.�”If you can save even ten bucks per pay period, it gets you in the habit of saving.�
Tosetti explained further why it is important to start now. �If right away you start saving 10 percent or five percent, you are already used to saving for when you graduate and are making a lot of money,” Tosetti said.
Similar to why most of us attend college, this habit’s goal is to financially prepare yourself for the future.
Tosetti also highly recommends following the �Spend Money on the Things You Want� rule.
“Use a spending book. It just keeps you focused and more disciplined,” Tosetti said. “It�s a funny thing, when you are more focused on what we call focus-spending, you are creating a more purposeful life. So, it�s a positive not a negative.�
A spending book is a tool which is an on-going list of future financial expenditures and lists of things which you need.
This book is a gem in the world of personal finance. Melissa Tosetti is a finance guru who says she has plans to publish many more titles, including one focused on college students. Aside from the book, she and her co-author Kevin Gibbons also have more financial advice on their site, The Savvy Life.
Contact CU Independent Assistant Opinion Editor �Mandi Meek at Amanda.meek@colorado.edu.
