As a freelance writer / editor / organization freak, I lurve connecting with fellow bloggers, writerly types and sassy guys & gals across the globe.

Today, I’m sizzling with excitement to feature an interview with Holly Smith of Shopaholly! Holly is a personal finance whizkid with a fresh perspective on spending, saving and scrumptious cupcakes. Because cupcakes should be part of every budget plan, no?

Off we go!

AF:  What made you want to start your blog, Shopaholly? For brand-new readers, what are 2 or 3 “must-read” posts that really encapsulate the spirit of the blog?

HS:  Let’s skip back to early 2008. I was spending money like a crazy person, literally spending everything I earned and then some of the banks money too. I knew I needed to take some drastic steps to get out of my terrible habits so I decided to quit shopping for a year. I figured a blog would be a great way to keep track and I knew that even if a handful of people read it then I’d be more motivated to stick to it. My readers were so supportive during that year, I don’t think I could have done it without them!

Take a look at:

My First Ever Post: http://shopaholly.wordpress.com/2008/04/09/why-would-anyone-want-to-stop-shopping-for-a-whole-year/

New To Personal Finance? http://shopaholly.wordpress.com/new-to-personal-finance/

What I Achieved In A Year Off: http://shopaholly.wordpress.com/2009/05/07/anti-climax/

AF:  Last year, you managed to free yourself from debt and save up heaps of money, and your attitude towards personal finance is fun, fresh, realistic and very personalized. How did you make the shift from “spendaholic” to “saveaholic?”

HS:  Financially, the shift happened overnight. Literally one day I was a spendaholic buying anything I wanted and as soon as the ban started I was all about saving as much money as possible. Emotionally the shift took about three months until I was comfortable with being a saver. I had to unsubscribe emails from online stores, quit reading fashion magazines and avoid shops altogether (I didn’t go into a clothes store for about 4 months). It’s amazing how much free time you have when you quit shopping and I had to find other things to fill that space. I baked a lot, took long walks, took long baths and read a lot of books. I learned to indulge my soul rather than my wardrobe and, trust me, the benefits last a lot longer!

AF:  If you had an extra £1,000 right this minute, what would you do with it?

HS:  I’m saving for a deposit for a house so I would just shove it into that account. Gosh that’s such a boring answer! Apart from that I’d probably take my boyfriend on a trip somewhere. We’ve only been together six months and haven’t had a holiday together yet so it’d be great to do that.

AF:  What about an extra £1,000,000?

HS:  In all honesty, I’d probably throw up! Now that I’ve learnt the value of money I know I could do so much with a million bucks. Firstly I’d pay off any debt that my family had, buy myself a house and take some time to travel for a few months. Then I’d stick the rest into savings and get back to work. Even if it was £100,000,000 I don’t think I could not work, it drives me too much.

AF:  What advice would you give to someone who is totally overwhelmed by the world of personal finance? What tools or resources would you recommend?

HS:  If you’re thinking of taking control of your finances then congratulations! Thinking about it is the first step to financial freedom. First, KNOW WHAT YOU OWE! Sit down and go through your finances. Figure out your income, your debt, committed expenses (like rent and bills) then your disposable income.

Secondly, FIND WAYS TO CUT BACK. Once you start trying you’ll find that you can make savings on everything. Look out for deals when you buy groceries, see where you can reduce your bills, walk more and save on fuel, take leftovers for lunch and just stop buying so much stuff. Trust me, we do not need more stuff!

Once you start spending less you can use your extra cash to pay off your debt or start saving. SAVINGS ARE AWESOME. Having a little bit of money tucked away is such a great feeling. I believe in the power of an Emergency Fund. Personally, mine is enough to go for 6 months if I became unemployed. Pick an amount, hit your goal and then don’t touch it. It’ll be like a weight off your shoulders.

As for resources, there are some great budget calculators online. In the UK we have a great website called Money Saving Expert which is full of tips and advice that will still be relevant for non UK money fans! They have a fantastic tool called The Demotivator which works out how much your little spends cost you per year and how many hours you have to work to pay for them. For example, a daily coffee from Starbucks would cost me 3.5 weeks worth of income per year. That knowledge alone was enough to make me switch to making my own.

There are also some awesome personal finance bloggers out there who are doing a much better job than I am. Budgets Are Sexy is my favourite, J. Money writes totally kickass posts about financial matters you haven’t even dreamed of yet. It’s also worth buying a book on money management but remember that you can buy a used copy on Amazon.com for a lot less than retail price!

And once you get started, blog about it, there’s a lot of support out there!

AF:  What’s on the horizon for Ms. Shopaholly? Graduate school? A new job? Love? Travel? Cupcakes?

HS:  Oh gosh, I quite like not really knowing what’s on the horizon! I love learning so I’m starting a home study degree in Health and Social care later this year. I’m pretty loved up so it’s all good there and we’re tentatively planning a month long drive around the USA next year and as for cupcakes, well, I plan to continue to eat as many as humanly possible!

AF:  Speaking of which, if you could only eat one flavor of cupcake for the rest of your earthly days, what would it be?

HS:  Nooo! Please don’t make me pick just one! If I absolutely had to then I guess it would be a banana bread cupcake with vanilla cream cheese frosting. Which I am now hardcore craving.

AF:  Lastly, how can people stalk (ahem, “find”) you online?

HS:  Well you can read my blog and also follow me on Twitter @hollyjunesmith. I love making friends with new followers so come and say hi!

Thanks for stopping by, Ms. Smith!  Good luck with your thrifty adventures.