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Hooray! Yesterday, M ceremoniously snapped my credit card in half! We’re just about to go meet his bank manager to talk about opening a high-interest savings account to start saving for a home-loan deposit, but before I can contribute to that, I need to sort out my current cash concerns.
Been reading more blogs about savings and stuff, but I’m being creeped out by percentage budgeting and the like. I Sigh, this is so hard for me. I haaaaaate number. But maybe not as much as I like spending money :P I got paid today, and having done all my bills and rent for the fornight (including a set amount to repay my credit card) I keep thinking about the nice little balance left in my account. I know that I’m supposed to live off that for the next two weeks, but I like instant gratification, dammit!
So I have decided to have a plan. I like plans. And having one might help me be a little more frugal.
So, presenting my 7 steps to get started on the path to financial freedom (cause I know it’ll take more than just “7 steps” to get my there) which includes paying of the credit card, getting that emergency fund up-and-running, and working up to visiting my friends in Melbourne (cause I just got an email from one of them and I REALLY WANT TO GO VISIT!!):
- Each payday, transfer $200 to credit card.
- Budget for the fortnight.
- STICK TO THE DAMN BUDGET!! That means… DON’T SPEND RECKLESSLY!!
- If money is left over at the end of the fortnight:
(a) transfer 50% to credit card account; and
(b) transfer 50% to emergency fund account. - When credit card is paid off, transfer $200 from each pay to emergency fund account.
- When emergency fund is at $1000, open another account for Melbourne Holiday.
- Transfer $200 from each pay to Melbourne Holiday account.
As Bridget Jones says: GOOD PLAN!
Hah.
Yet another item on my stress list: Money.
Cash. Dough. Moolah.
Whatever you want to call it, I don’t have much of it.
Upon returning from M and my Post-Graduation South-Asian Holiday-Extravaganza, there were three factors which left me in this particular financial position:
- I had spent all my savings;
- I had dipped into the ol’ Visa (all it takes ™) to fund some splurge duty-free purchases, leaving me in debt; and
- I realised that I simply cannot, no matter what, regardless of any previous grandiose stay-at-home-to-save-for-home-deposit plan, live with my parents anymore.
As for Number 3, I honestly had to get out. As. Soon. As. Possible. (I know keep putting off the back story, but I really can’t find the time to sit down to shift through it all…)
I emailed/rang a bunch of people offering rooms in share houses in suitable locations and accepted the first response because it was in a great location, the room was reasonable, the house didn’t look horrible and the house-mate seemed nice enough (in the five minutes in which I spoke to her). It was lucky I took it since it was the only response I got, and therefore I ignored the fact that my share of the rent was slightly higher than I wanted, and just submitted to the horrible rental market, relegating myself to not saving as much as I would like to.
My frugality with the new digs included not buying a TV and choosing not to use/share the wireless internet (saving about $40/month) but I had to borrow $750 bond from Mother and $200 from M to buy a microwave. Whereby Number 2 got even worse.
An “interest-free balance-transfer low-rate credit card” offer was taken up to avoid paying 19.99% on my old student “fee free” credit-card, which was now about to charge me fees as I was no longer a student, but I was rudely awakened to receive less than I expected in my first paycheck due to the fact I was paying back more than I should have to in Fee-HELP because my incompetent university had overcharged me.
Plus I have the aforementioned shopping addiction, so I was buying a few things here and there which I probably didn’t need to buy, but hey, I just started working and I was earning money, I should be able to spend if I want to, dammit.
Then, as I was reasonably making-do, I decided to go to Therapy to sort out my Issues.
Which totally Boned my budget.
At $170 a session, getting Self Actualized ain’t cheap.
While I do get about $110 back from Medicare cause I’m on a “Mental Health Plan” through my GP, I still have to have the full fee up-front, and it’s caused me to actually increase my credit card debt.
I need to get it paid off before the 6-month “interest free” period is over, but I feel like I’m not making aaaaany headway and it’s bumming me out because I can’t save for anything, including a trip to Melbourne that I would reeeeeally like to do in July. Plus I can’t shop.
After I’ve paid for this week’s session today, I am cutting up my card so it doesn’t get worse, because I have budgeted to keep my head above water from this payday onwards.
I’ve been reading a few blogs about saving money, and I have decided to really get serious about “budgeting” and the like. My next goal is to save up an “emergency fund” so that I don’t need to rely on credit or parents or M for things that jump up to scare me.
Then I’ll work back to the Melbourne Trip, if I can, and then work on saving for a home deposit. Not that that’s likely in this market (I’m such a pinko, cause I love to blame the freaking market) but hey, a dream is a dream.
Squanderlust on news.com.au had a new post today about “frugal being the new black” and I reckon she’s onto something. And hey, if I’m on that bandwagon, of course it’s cool now :P
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