Financial diet link-up!

First, a thank you is deserved to all of you for your kind and encouraging comments. Things are rough for me right now, that's for sure, and it's all because of money. But I'm staying positive, because I know things will get better. And what's more, I'm taking some action! It all begins with the financial diet.

I'm kind of already on one out of pure necessity (aka, I'm flat broke) but that doesn't mean we can't start the OFFICIAL link up for everyone else! Click the "financial diet" tab at the top of the page, or if you're lazy like me, just click here.

So what is this, anyway? Really, I'm not quite sure yet. A support group sort of thing, perhaps? Really, a way for us all to recognize other bloggers who are trying to get their wallets under control. There will be guidelines, I suppose. Let's think up a few right now.

1. Identify and list your monthly expenses. This includes vitals like rent, electric, gas for your car, etc. But it also includes "luxuries" like cable, dining out, shopping, etc. You don't necessarily have to post all this info for the world to see, but you should create a spreadsheet to help you keep track. Keep an eye out for a Google doc that I'm going to upload soon. You can download it and use it as a starter or a point of reference.

2. Figure out what expenses you can cut. For me, the first things to go will be dining out, shopping and bars. I'm choosing not to cut cable, mostly because I live with the bf and he probably wouldn't be down with that. I'm also not giving up my smartphone and data plan. The use simply makes up for itself. What you cut is up to you, but remember that the more you cut, the more you can save.

3. Start saving! Take all the money from the stuff you cut, as well as any money that's leftover when you subtract your expenses from your income, and open an actual savings account if you have no willpower, or keep in in your sock drawer (it's not like it will make much of a difference in potential interest, given the current economic climate). This is what you'd call a "rainy-day" fund...money that you only touch in true emergencies. Like your car's transmission goes out or you wind up in the hospital. Fake emergencies, like the Victoria's Secret Semi-Annual Sale, do not count. There aren't many ways to fail at a financial diet, but this is one of them.

4. Reward yourself. It's important to set aside a little "petty cash" each month, so you don't feel like a scrooge. And hey, we all know that going to the bars with friends and not having a beer with them will seem rude. So decide how much you want to set aside for petty cash each month--I'm thinking about $20 per paycheck for me--and stick to it. I'm going to make it easier on myself by taking it from the ATM. That way, when the cash is gone, I'm done spending for that pay period.

5. Spend wisely. This means on everything. Save some extra cash on groceries by clipping coupons, whether they be from the Sunday paper, junk mailings that you usually toss, or stuff you found online. Sites like Groupon are great, but only if you use them to buy discounts on stuff that you already buy. Don't be buying a Groupon for a $20 manicure, unless you want to use all your petty cash on that one item. For clothes, try to only shop at thrift stores for a month and see how much money you save. Or, stick exclusively to the sales racks at stores like Target and Marshall's, where everything is already affordable.

6. Share! If you have a tip, email me at verbal{dot}melange{at}gmail{dot}com. I'll add it to a list of tips on the Financial Diet page of the blog, and we can really help each other with this one.

Okay, those are all off the top of my head. Shoot me an email or a comment if you have anything to add or see anything that you think should be explained more or changed altogether. And keep an eye out for a post with a link to the Google doc spreadsheet to help get you started! Happy saving, everyone!