Like my new mantra? I thinks it’s corny, quirky, and cute!
It’s time to start thinking about those New Year’s Resolutions. Instead of listing the same things I want to change (but don’t) year after year, I’ve decided to tackle my finances. But I’m going to try a different approach.
I read a post on Frugal Dad that really got me thinking. It’s a guest post from Neal at Wealth Pilgrim titled Are We Ever Done?
In his post, he talks about setting goals, achieving them, and moving on to the next goal. It made me realize that I am all over the map with my efforts. I want to incorporate everything I have learned about personal finance all at once.
For example, I have been trying to reduce my expenses, stop spending more than I earn, save for a house, put away an emergency fund, save for Shaunna’s college, save for furniture, take the kids on vacation, save for retirement, etc, etc, etc. all at the same time. And guess what? It’s not working.
I started off 2009 with $20,000 in a CD. I know that I will piss my money away if I have access to it. But in using the knowledge I had gained through personal finance blogs and books, I decided to pull all but $2,000 of that money out and place it in an ING savings account because the interest was better. Today, I have the original $2,000 CD that I left at my bank, and only $5,307 in the ING account. I have an additional $1,000 that I used to open a Roth IRA, and I made loans to family that total $3,372. If those loans are repaid, I will have $10,679, out of the original $20,000? Where did it go? Most went to Disney. A lot went to pay bills. A little went to this year’s Christmas shopping. And some was just pissed away.
So, a year of learning some tough lessons. But I have learned from it and I’m going to make some changes for 2010.
- Transfer $1,000 into my credit union savings account for an emergency fund.
- Pay off my credit union Visa ($934.37) with savings in my ING account.
- Pay off my Master Card ($196.49) as soon as the statement comes in. Pay using my paycheck.
- Pay off Walmart card in 90 days ($382.09) I signed up during a promotional period for 90 days interest-free. Pay using my paycheck.
- Pay off Firestone card in 90 days ($252.24) This is also 90 days interest-free. Pay using my paycheck.
- Transfer approximately $3307 back to my Credit Union and put back into a CD.
- Loan #1 is being paid back at $100 a month. Leave this money in savings and every time it reaches $1,000, open a new CD. (Credit Union has a minimum deposit of $1,000 to open a CD.)
- If $400 loan payment comes in from loan #2, add that to savings until I can put into a CD.
This is my financial plan as of today. There are a few other things that I want to do, including:
- Really trim the fat from my budget, and learn to live within my means.
- Put $20 per week away for birthdays and next Christmas.
- Find $96.15 per week to max out a Roth IRA since I don’t currently have a 401(k).
- Add to savings any and all money I can squeeze out of my budget.
- Read 2 personal finance books and one self-improvement/motivational book per month from the library.
I have a plan for 2010. I feel good about where I’m heading. Here’s to a better Jen in 2010!
I love the mantra!! And your financial plan is awesome as well! I try to stow away some money each paycheck too, but it can be so hard sometimes. And I DEFININTELY need to do the Christmas fund too, because I always feel broke at the end of the year. Great goals!!
Love the mantra!
Just thought I’d drop you a note and quit lurking in the shadows. I have been reading you for almost a year. I like that there is another yet braver soul going through things I am going through. Its good to read someone’s brutally honest take on the everyday life post-divorce. I will continue to read and be encouraged by your blog so long as you continue to write it. Good luck to you this year with all that you will try to accomplish. Can’t wait to read about it all–it helps to see others going through the same struggles!
I can see where you are coming from. I’m in the same boat. Have a bit of money in the bank but too scared to do anything about it just because I haven’t got a clue about investing and budgeting. I had to learn everything about saving and budgeting and it is not easy. I am glad I came across your blog, it reminds me I am not alone after all!
Jen, its been a while since I’ve checked in here. I like this post. I am such a spendthrift when I have money. When I have none, I can cut corners like nobody’s business and stretch a dollar until it squeaks. But put a little extra cash in my pocket and the end result is the same as when money is tight – by the next payday, its gone.
My goal is to do a better budgeting process and start putting away more money every month too. This paycheck I finally got my savings account up past the $200 mark! (Yeah, I know, sad, tired “w00t”) I like the idea of putting$20 away a week for Christmas. Think I’ll try that, might be nice for Christmas to roll around and not have to go into debt to make everyone happy!
[...] year, I had my quirky little mantra a better Jen in 2010. It didn’t work out. At all. In fact, I am further in debt than I was then. [...]