I’m in a much better place financially than I was a year ago. At the start of 2007 I found myself with $3400 on my credit card and no emergency fund. It sucked. So I resolved to pay down the credit card by the end of the year. I did it, but it was really hard. I reduced some of my expenses (more on this another time) and I had to get obsessive about my budget.
It was important for me to keep that credit card balance right at the front on my mind so I would stay on track. I constantly calculated how fast I’d reach my goal if I tweaked my budget this way or that. Little things, like buying hair bands or eating anything but a packed lunch, were out of the question. I think what I learned last year was that I just couldn’t afford the lifestyle my non-grad student friends have, period.
Now that I’ve paid off the debt, I’m still pretty obsessive about money. I have so many savings goals now, both short- and long-term (more on this another time, too). And I never want to carry a credit card balance again.
I wanted to share my money experiences and obsession with other bloggers in similar circumstances so that 1) I might learn how to better manage my money 2) I might help others learn to better manage theirs and 3) people might realize that many of us are in the same boat. It’s really hard to say no when people invite you to do things that cost money, even when you just know that they don’t have cash to spend either. Maybe by having a community of like minded bloggers, we’ll be able to stand up to these people and honor our own priorities.
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3 comments:
Something I've been working on this year is giving myself permission to opt out of social events that cost money. That makes me a) super boring and b) not so socially popular. On the other hand, however, I've stopped using my credit card unless I'm in a crunch (last month's crunch was needing expensive medication). I also figure that "real" friends would invite me to do more than spend money, no?
Good for you on paying off your credit card. I have a kazillion times more credit card debt than you did, but I remind myself this is an investment in my education. Soon I'll post my budget (or my areas of issue) and frighten everyone with my levels of debt ;)
One thing I might recommend is that when friends ask you out to do something too costly, that you instead make an alternative suggestion that costs less. I have found that often my friends just aren't even thinking about the money aspect and are perfectly happy doing just about anything as long as we get to hang out. Here are a couple of examples that work for me:
1) instead of going to a movie theater, get movies from Netflix or a video store and watch them at someone's house. Entice people with the ability to eat whatever you want, make as much noise as you want, and drink an alcoholic beverage or two.
2) instead of going to that more expensive restaurant, have a potluck party at someone's house or maybe takeout from a cheaper restaurant (e.g. tacos on the beach, etc.)
3) Instead of going out to drink at a bar, convene at an apartment or house for beer sampling "around the world", or wine tasting, or a magarita party, etc.
Just some things that have worked for me in the past. My approach was that I didn't have to spend money to have fun, as long as I was creative about it.
Those are good suggestions. :)
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