How I Did

I committed to following everything that I swiped my debit card for in February, and I'm happy to report I succeeded!! YAYY!!!! Now, on to the dreaded task of reporting how I spent, lol...

Food 295.67
Fees 3.5
Apt Bills 173.69
Gifts 104.84
Credit Card 200
Rent 1003.48
Clothes 214.49
Personal Grooming 159.49
Gas 45.76
Personal Items 55.83
Entertainment 213.5
Business 49.86
Cell Phone 82.81
Computer Software 84.9
GLI 50
Dior 13
$2,750.82

YIKES!!! That bottom like is ultra scary. I will add some brief notes to the totals...the gifts section came from Valentine's Day and I set a goal of no more than $100, which I exceeded by a mere $4.84 so I'm pleased with that. My clothes are higher than expected, I did have two purchases that I had previously made at Express & Piperlime that were due this month, so these were factored into what I spent. Normally, I'd say I spend about $100/month on clothes. My personal grooming was higher than normal because I had to get my hair done, which is an expense I'm really trying to cut back on by learning to better take care of my own hair. Entertainment was definitely higher than ususal because I went on a ski trip with boyfriend, and it cost me $92 to participate. I also signed up for tennis classes, which were $86, so that isn't a traditional monthly expense, although I plan to re-enroll at the conclusion of the class. I had to purchase virus software for my computer to keep it protected, so I purchased two years to avoid having the added expense next year. So that's very unusual. All-in-all, I spent WAY more than I would've EVER anticipated. This will definitely make me think twice this month before swiping my debit card for any old thing! And the funny part is that even though I had non-traditional expenses come up this month, don't they always come up? I mean every month there will be an unexpected expense...like this month, I have a birthday and most likely another hair appointment. It makes me sick to think about it...lol

March Goals

For February, I give myself a pat on the back. Not a huge pat, just a pat...but a pat nonetheless. Here are my goals, and here's how I did:

1. Don't overspend. Valentine's Day is this month and while I LOVE to shower boyfriend with gifts...I shall refrain. I think we (boyfriend & I) should pledge to spend $100 MAX for V-Day. Our love is solid, I don't need material things to solidify anything. Ehhh, so-so. I could've definitely spent less, but I don't feel that I overspent. I didn't incur any debt.I'll try to do better again this month.
2. Put all extra money towards my credit card. The tax refund is looking pretty solid right now, so hopefully I can knock out my credit card (for the 3rd or 4th time, I'm losing track at this point.) FAIL. I didn't do it...period. I spent most of the extra money I had. Of course, I haven't thought about moving any extra money yet, so I technically still can...I plan on paying off the good old Chase credit card with my tax refund. Again, I'll keep striving this month.
3. Track what I spend. Every single penny, nickel and dime. PASS! I tracked everything that I spent in the month of February and I was definitely SHOCKED at the outcome. So I think the exercise was well worth it.

Now it's time to set some goals for March. Sidenote: This is my birthday month!!!

1. Don't overspend. Period, point blank, self explanatory.
2. Put all extra money toward credit card. Including my tax refund! This is going to be painful, but I know I can do it. If I was a good girl before, then I'd have extra money to shop for Spring. But alas, I wasn't a good girl, and I swiped Mr. Chase, so I have to pay him back! Next year, I'll smile as I burn up the mall for some Spring clothing.
3. I can't think of a heartfelt goal to put here. So I'll go with DO YOUR BEST. I can do a better job at hitting these goals than I've been doing. So this month, I'll really aim to hit the mark on them. Isn't it funny that we free up extra money in order to do other things and we end up spending it, but not for what we intended? Ughh, I've gotta do better. Lord, please give me some gut-wrenching determination!

A Personal Hiatus

Today during a very interesting gchat with boyfriend or Mr. Man as I sometimes refer to him, I realized that often I've set goals for myself and haven't followed through with them. Boyfriend is very good at setting goals and checking back on his goals...so...he suggested that I take a personal hiatus once a month to set goals, short and long term, follow up on goals from the previous month, and do major things related to personal finance. Now you see why I love him so much, he's a genius. I set goals during August, and much to my chagrin, I didn't follow up on them. So perhaps this would be a great monthly exercise for me and it would help me to stay on the grind continually.

On a monthly basis, I will now have a personal hiatus (with boyfriend, but separately). This way I can set, follow up, and maintain my goals. As well as, know his goals and we can both help one another as far as accountability is concerned. I'm so excited! I wonder when we'll start? Perhaps January...isn't that the time EVERYONE starts new goals and projects? (That was a rhetorical question.)

Maybe I can label them Personal Hiatus...doesn't that sound intriguing?! Like hmm, how classy, what's she up to?! Yep, the Personal Hiatus it is...a star is born. And more importantly, a great habit.

The Budget Challenge

Per my previous post...oh, about 10 minutes ago. I'm really going to commit to doing a budget for 3 months, since Mr. Ramsey says that's how long it usually takes people to get the hang of it. After which point, I'll review my money and see if I was able to keep a better hold of it. This should be interesting, especially since I get paid 3 times in October, which means if I do this right, I could come out way ahead. I am going to commit to keeping track of what I spend and writing down what I plan to spend and following through with this. So in the words of the older gentleman on the Cosby show, "CHALLLLLLLLLLUUUUUUUUUUNNNGGEEEEE!!"

Tune in next payday (October 17th) for updates.

Budget Smudge-It

MAN! Budgeting is super difficult! I know this is the part where I'm supposed to say that I've got it all figured out and it's a whiz, err...but I can't say that friends. It's tough! And I feel as though I seriously have been trying to keep an eye on what I spend.

A good friend who also listens to Dave Ramsey told me to try the envelope system in order to track my spending in categories such as gas, groceries, and the blow category. This also proves to be a difficult task, as I hate carrying cash. I'm always afraid someone is going to knock me upside the head and take everything I've got. I think I get that from my mother, once my alma mater played in the Sugar Bowl in New Orleans and my mom had a brand new purse (that she discovered didn't have a money compartment, her words, not mine) so she proceeds to walk down Bourbon Street with her purse clutched so tightly under her arm that she ended up pinching a nerve in her shoulder/neck area and had to go to the doctor for medicine once we got home! So...needless to say, I earned my angst over cash honestly.

Anyway...back to the matter at hand, budgeting. It's so difficult...I know I'm whining, but it's my blog, so I can do that. I can play my "Princess Power" as boyfriend calls it. The one thing I have managed to notice is that when I automatically put money away for saving, it's done. And I don't go back and remove it. Period. So, my retirement (prior to this economic meltdown) is well on it's way to prosperity. As well as my high yield savings account. Those babies are in tact! And I suppose, that's truly what matters the most. All of my bills are paid, and on time. I just have to get this credit card outta here (for, hmm...the 3rd time in my life). So I suppose I'm in a great place, just not totally where I'd like to be. But I guess that's what goals are for.

The bottom line is even if I don't have money to shop every month or spend money on trivial things, I always save for retirement and just in general. Because as Mr. Bach says, it's automatic, and that makes it easy. Now if I could only lock myself into this budget thing...I know I can get the hang of it. Maybe I'll set a goal that by the end of the year (approx. 3 months), I'll be budgeting on a monthly basis and meaning it. Yes, that sounds reasonable...enter the "Budget Challenge." See next post...

Rich is Relative

Every person has their own personal hierarchy, a ranking system that they use to determine what's most important to them. Being rich may not necessarily be having a lot of money in the bank, for some it could be driving a Mercedes, or having a closet full of Jimmy Choos. Rich is totally relative.

You could go through life trying desperately to eliminate debt (and by all means you should) but in the meantime, stop and smell the roses. Take time to enjoy these moments because no amount of money can buy them back. They're priceless.

I took some time and thought about what my personal hierarchy entails...in no particular order (I'll attempt that later) here they are:

• I want to wear nice clothes to work and on the weekends, after all this is correlated to how often promotions occur
• I want to live in an area that's a mix of city and suburban life
• I want a moderately nice vehicle (dependable & classy)
• I want to retire at a normal age (55-60) and have the flexibility to do what I want
• I want to travel 2-3 times per year while working, more upon retirement
• I want to go to graduate school, not sure for what just yet and only if it increases my earning potential or is something I'm passionate about
• I want to own my own home one day in the next 5 years
• I want kids one day

And in order to get there...

• I'm willing to live with a roommate in order to save money
• I'm willing to stay in the house on a Saturday night reading a book instead of partying
• I'm willing to give up satellite radio in my car unless I start driving to work everyday
• I'm willing to be on a staff of employees, family life is more important to me
• I'm willing to cook versus eating out. Occasionally eating out is nice
• I'm willing to start my own business if it's something I'm passionate about
• I'm willing to have just one pet now (Dior) he's expensive enough
• I'm willing to have a moderately sized wedding that's fancy-ish or a destination wedding

With all of that said...to me, I am rich right now. I buy the clothes that I want and I pay somewhat good money for them, not always, but often. I drive a car that's nice & reliable. My apartment makes me feel safe and it has a garage. I put 10% of my salary into my retirement, I belong to an investment group, and I save on a regular basis. So in my eyes, I am rich. I have what I want out of life at this very moment in time. My hierarchy will of course change as the years come & go, but for now...I'm A-OK with where I am, and I'm also very proud.

I encourage you to decide what things are most important to you in life and strive to accomplish those things, whatever they may be realizing that at times these goals may shift & change.

One more note before I end this thing...boyfriend often gives me a hard time about how much I pay for my clothes as have some of my other guy friends. Keep in mind, that according to my personal hierarchy, that's something that's important to me, for which I'm willing to sacrifice. With that said, I nicely pointed out that I don't go out to the club every weekend, to tailgate during football season, to a fast food spot everyday, or to purchase Xbox minutes online. Those are all things that may be in someone else's hierarchy, but they're not in mine. So with that said, there really is no difference between myself and anyone else (any cool kid that is, not some frugal fart). I buy what I like...if I see something that I want and it's unreasonably priced, I'll wait until I have a coupon or it's on sale. But I'm gonna get it! I also tend to wear most of my clothes to work as well as out on the weekends. They double, so that means I get more wear out of them. I don't buy a bunch of jeans (which I can't wear to work, not even on Fridays), I buy shoes and shirts and skirts that can be worn to work, church or play.

One more thought...for those of us that have personal appearance matters somewhere in our personal hierarchies. When I pay more for something, I treat it better. I'm not endorsing or suggesting that we all go expensive possession crazy but I am saying that it's okay to buy nice things for yourself, especially if you're going to use them often. Sometimes expensive purchases can be justified on a cost per use basis. Here's an example that I borrowed from You're So Money but can also see illustrated in my personal experience. Boyfriend has about 5-6 pairs of sunglasses, all of which he paid no more than $20 for...I have one pair of designer shades (and I'm not buying anymore). However, when he breaks a pair or loses a pair, he's like no biggie...they were only $15, but then he goes out and buys another pair of $15. And this happens over & over. Now, let's examine my side...I've had my one pair of Diors for 3 years now, and they still look brand new. Plus I KNOW they have true UV protection. Therefore, I don't feel bad about wearing them while he's piddling away between $10-20 on random shades, my pair is still kicking and fabulously fly I might add. You only have one set of eyes and it's important to truly protect them (who wants crow's feet around their eyes?!). Lots of people have said that they'd break their sunglasses and this is most likely true for some of us. It all depends on your hierarchy. But this example can be applied to whatever it is, that IS important to you.

So...
Be rich
Be fabulous
Be young

After all...it's all relative, right?

Monthly Goals

Despite having long term & short term goals, I also think it's a great idea to have monthly goals. Things that you can focus on over a period of 4-5 weeks. With that said...I'm going to make myself one goal for August, since today is the hmmm...21st!

August Goal

• Track my expenses (Mint makes this easier!)
• Do a more accurate budget for September based on these expenses

Fabulous Thoughts

Last night at my investment group meeting, we discussed the importance of having one's financial life together & staying in the mindset. Meaning it's important to continuously seek new information on retirement, investments, savings, etc. no matter how weary you may get. Persistance is the key...if being disciplined enough to be rich were easy, everyone would be rich, right? Exactly! And that's why everyone isn't rich. Everyone doesn't want to take the time to write out goals and stick to them, budget and stick to it, invest regularly, or stay in the mindset of growing rich.

So from now on...my mindset is "Think and Grow Rich." Just like the book, which I'm currently reading. It's all about changing the way you think about things in your life and how if you consistently have money on your mind, you're bound to see and create opportunities that may pass others by.

Then I get on CNN and find the above referenced article about saving at a young age which inspired me even more. So I definitely feel like I'm on the right track, it's just about staying focused in order to continue my quest towards financial fabulousity.

Here are some thoughts that I read in my book, which I intend to write on index cards to stay focused:

• Wishing will not bring riches. But desiring riches with a state of mind that becomes an obsession, then planning definite ways and means to acquire riches, and backing those plans with persistance with does not recognize failure, will bring riches.
• ...there is one quality which one must possess to win, and that is definiteness of purpose, the knowledge of what one wants, and a burning desire to possess it.
• No one is ready for a thing, until he believes he can acquire it.

And finally, I'll end with Six Ways to Turn Desire into Gold from Think and Grow Rich:

1. First, fix it in your mind the exact amount of money you desire. It is not sufficient merely to say "I want plenty of money." Be definite as to the amount.
2. Second, determine exactly what you intend to give in return for the money you desire. (There is no such reality as "something for nothing.")
3. Third, establish a definite date when you intend to possess the money you desire.
4. Fourth, create a definite plan for carrying out your desire, and begin at once, whether you are ready or not, to put this plan into action.
5. Fifth, write out a clear, concise statement of the amount of money you intend to acquire, name the time limit for its acquisition, state what you intend to give in return for the money, and describe clearly the plan through which you intend to accumulate it.
6. Sixth, read your written statement aloud, twice daily, once just before retiring at night, and once after arising in the morning. As you read -- see and feel and believe yourself already in possession of the money.

Updated Goals

Short Term Goals (2008)

• Make a budget
• Track my expenses with the budget
• Stick to the budget
• Seriously commit to paying off my credit card (this will be the fourth time I've paid that sucker off)
• Pay more on my car to speed up the payoff
  

Long Term Goals (2009/early 2010)

• Pay off my credit card
• Pay off my car
• Save for a house (this is after the first two have been accomplished)
• Start a Roth IRA (after my credit card is paid off since I already have a 401K that gets a large % of my income)

Setting Goals

So the first step I suppose would be to set some goals for myself. Or is it to make a budget? I hate that word...BUDGET! YUCK!!! It sounds soo creepy, like it's going to come tie you down forever and you'll never be fabulous again. So constricting and limiting...that means no picking up steals, deals, must haves, or anything else for that matter...besides food, rent, saving, gas...blah, blah, blah. Oh yeah, the goals...

Okay, seriously...short term and long term goals are probably appropriate that way I don't get bummed out or tired trying to accomplish them.

Short Term Goals (2008)

• Make a budget
• Track my expenses with the budget
• Stick to the budget
• Seriously commit to paying off my credit card (this will be the fourth time I've paid that sucker off)
• Pay more on my car to speed up the payoff

Long Term Goals (2009/early 2010)

• Pay off my credit card
• Pay off my car
• Save for a house (this is after the first two have been accomplished)
• Start a Roth IRA (after my credit card is paid off since I already have a 401K that gets a large % of my income)

Okay, I think those are realistic...and I feel like I can accomplish and commit to them. I'd also like to increase my contribution to my Thrift Savings Plan (that's the government version of a 401K) but that may not be reasonable since ultimately I plan to have both a TSP (tax-free contributions) and a Roth IRA (after tax contributions) that way I can have money that's already taxed hence no more taxes upon withdrawal and money that's allowed to grow without my current income being taxed. How financially savvy am I sounding today?!!! Haha...Okay, off to create my budget.