I'm not good at everything

(as if you thought I was).

We recently got the bill for that little hospital stay a few weeks ago. Let's just say, we need to start pinching pennies, STAT! I'm so impressed and in aw of all you bloggers and real life friends out there who save like it's your job and don't really think much of it. Seriously, I applaud you.

I'm one of those frivolous spenders...sure I need another sweater from the LOFT, heck yes let's throw another few random groceries in the cart, dinner out? (I know we shouldn't, but okay!).

One of these days, I keep telling myself, I'll make enough $ to start saving because right now I only make enough to live. The truth is, "one of these days" IS NOT SOON ENOUGH. And the frivolous spending happens because I feel bad for myself that we can't afford bigger things (trip to Hawaii, a newish car, etc). Basically, it's a vicious cycle.

I mean, what the hell am I waiting for?

And because it's really been weighing on my mind this week, clearly it's an issue I've got to start working on.

So, here's the thing. By the end of February, I will ...

1. have set up a mint.com account for myself (and the manfriend if he so wishes) and will begin funneling all my finance info into that thing and begin understanding the tool.

2. have completed and filed my taxes (seriously, there's no reason for me to wait every year. I have no kids or properties to make things tricky.)

3. have created a budget for the manfriend and I (ex. 30% to mortgage, 30% to bills, 10% to groceries, 20% to savings, 10% fun). Our budgets don't have to follow the same amounts or areas, but will be focused on what each of us needs to put $ toward.

Sound like a good plan?

Jess at Makeunder My Life posted the process that her friend Cathy at Fiscally Chic took (from Jess's four step makeunder process) in getting her finances in order so that she and her husband could save for a down payment on a home. Reading their four step process combined with seeing a few thousand dollar medical bill really lit a fire under my rear.

Are you currently saving for anything big (or just to pay off some debt)? What is your strategy?

Comments

Amber said…
Ugh, sorry about the medical bill :S Those kinds of unexpected expenses are NOT fun ones to deal with. Unexpected expenses get me every time!

I highly recommend ING Direct for saving. THE SECOND I get paid, I immediately transfer a big chunk of my funds into my ING account for savings. I also have my ING account split into four mini accounts "fun and trips" "car expenses" "house savings" "misc", which helps a lot too because if I have an unexpected car expense, I know there is a bit of money in my car expenses account to dip into!

I also ALWAYS try to keep my credit card balance below $200 (I know the paying it every month rule is better but that doesn't work for me so I just keep it under $200 which means minimum interest!)

Finally, EVERY time I get paid I take out $60 cash. That is my "allowance" for those little expenses - coffees, dinners out with friends etc. etc. If I'm not careful that $60 runs out fast and then I'm SOL for the rest of the time until my next paycheque :)

Good luck!
Lisa's Yarns said…
I can only imagine how big that medical bill was. Sorry, friend. :( Yikes.

I have gotten to be a much better spender in the last couple of years. For me, it has to automatically come out of my paycheck or it doesn't happen. So I have a set amount that goes to an ingdirect savings account. I like ING because it takes 3-4 days to get the money if you want to transfer money out of savings - which prevents me from making rash decision! I used to have a savings account w/ WF but it was way too easy to just instantaneously transfer money to my checking account and spend it!

Good luck! You are a smart cookie and are very disciplined - you can do it! :)
Thanks, Lisa and Amber. You ladies both have some great ideas. I've heard a lot of good things about the ING accounts. Thanks for chiming in!
Cathy said…
Hi Lauren! Sorry to hear about the medical bills. Is the manfriend all better?

I'm glad you found my posts! As you've said, every little bit helps, so I'm sure you'll get things in line so you can save for more exciting things. Like Hawaii!
Gracie said…
Good for you! We use Mint; it's quite helpful. FYI if you call the hospital's billing department they will usually strike a deal with you - an interest free payment plan or even a lower bill. In fact most hospitals can be bargained down if you are uninsured. Good luck!
I've always saved, but not with a lot of consistency. We sort of "splurged" with the whole moving thing (i.e. the cost of moving, the cost of living without "real" jobs for a while...ha uhh), and only recently have been able to start putting money away again! I used to allocate ~$100 from each paycheck, just went straight into saving! It wasn't a lot, but it was something that I could live without and it added up. :)

I've heard great things about Mint.com! I will sign up too!
Run Jess Run said…
We do strictly cash. Every pay day, my hubby and I take out of the bank the amount of $ our paychecks were and then sit down with our monthly bills. We have an envelope for non-bill stuff or things we don't pay every month like car insurance or HOA dues. We give ourselves an allowance for 2 weeks and gas money. We also try to put a designated amount in our savings every week (job security is an unknown for me because of the economy and cuts in school budgets so we're saving in the event I get laid off). We then set aside $200 for 2 weeks of groceries. Whatever's left goes either toward our credit card, an envelope called "Random" that is used for going out to eat or the movies, or towards fixing up our basement.

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