Carly DeFelice, the creator of the online personal finance course Best Money Class Ever, has established herself as an expert saver and budgeter with significant achievements. Between her college graduation in 2008 and her 26th birthday, she not only paid off $35,000 in debt but also accumulated over $100,000 in investments.
Now 38 and working as a community manager at a coworking space in Austin, Texas, DeFelice has further elevated her financial standing to approximately $400,000 in cash and investments. Remarkably, she achieved this without earning much more annually than her current salary of $58,000.
Despite these substantial accomplishments, the real testament to DeFelice’s budgeting prowess lies in the smaller numbers. In September, for instance, she spent a mere $123.65 on groceries, a feat that may seem challenging in the current inflationary environment.
DeFelice attributes her ability to spend significantly less than the average person to intentional meal planning. She emphasizes the importance of writing out meals and planning for the week, with her secret tip being to always have a well-thought-out grocery list.
Planning meals and avoiding impulse purchases
Carly DeFelice meticulously manages her weekly discretionary budget of $120, which covers various operating expenses such as groceries, gas, and car-related costs. As she prioritizes necessities, sticking to her grocery budget becomes crucial to allocate funds for leisure activities like happy hours, socializing with friends, or making small personal purchases like clothing or gifts.
DeFelice initiates her budgeting process by planning out all her meals for the week, often opting for large-batch dinners that she can prepare in advance. During the week in question, her menu included cereal for breakfast, a turkey sandwich with chips and an apple for lunch, and a salmon, avocado, and rice bowl for dinner. She meticulously lists the required ingredients in the same journal she uses to track her budget, ensuring her grocery shopping aligns with her financial plan.
Comparing her approach to creating a list to that of Santa Claus, DeFelice underscores the importance of only buying items on the list to avoid impulse purchases, fostering confidence in sticking to the planned budget.
This disciplined budgeting strategy extends to social activities, where DeFelice allocates a specific budget line, such as the $50 earmarked for dinner or drinks with friends in September. Proactively planning social events, she ensures enjoyable experiences without overspending.
According to DeFelice, intentional spending, whether on groceries or social outings, minimizes the likelihood of splurging on items lacking personal significance. She emphasizes that the key to her financial balance lies in realizing that the essence of these experiences with friends matters most, allowing her to maintain a vibrant social life while adeptly saving money.
Source: cnbc.com