"WHAT! How can he not start at the top of the list!? What madness is this?"
"Madness? THIS IS MY BLOG!"
...
Well, I've definitely seen more humorous references to the movie 300 and that so often quoted line. Actually, looking back a paragraph, that joke is very contrived and illogical. Why does a blog about my budget need a 300 reference? I don't know. Don't look at me.
Regardless of the validity of the movie reference, I'm here to discuss my budget. At the beginning of every year, I set a monthly budget for spending. I have been doing this as far back as I can remember. Which is about 3 days, which conveniently is when I started setting a monthly budget. How's that for a crazy random happenstance!?
I'm hoping that budgeting will, if nothing else, make me aware of how badly misappropriated my hard earned money has been.
Article no. 2 of the aforementioned resolution list states, "I will eat out less." This item will have impacts on Article no. 1 and Article no. 3 on said aforementioned resolution list. I will get to Article no. 1 at a later date. I will be discussing the impact on Article no. 3, which states, "I will alleviate myself from much debt."
Fast food and restaurants can have an impact on your weight if you don't monitor your intake, and they have an impact on your wallet if you don't watch the outtake.
I recently reviewed my financial analysis for the 2008 fiscal year.
(I do this because I crave knowledge and like a true nerd, numbers give me thrills, but also because Bank of America provides this online for free.)
After reviewing this analysis for the year of 2008, I realized that I had spent a whopping $1817.10 eating at restaurants and fast food. $1817!! I can't even imagine how much food that provided. However, a good chunk of that was eating with my girlfriend, Stef, which means I paid for two and ate for one. So at least I didn't engorge myself as much as that number makes me think. I know that there is alot of Chinese buffets included in that number, as well as a good portion of Old Chicago in Wichita. Also the other insane bit is that the $1817 only counts for purchases made with my debit or credit card. Cash is not accounted for, and I know I spent alot with cash as well. Moral of the story... I eat out way too frickin' much!
It's just easier sometimes. However, when I think of that number, I realize change must be made. The other nifty thing about my financial report is that it constantly keeps tabs on my net worth. My current networth... embarrassing as it is... -$22,315.66. Ouch!
However, that includes the little bit of money in my savings and checking, (it's right before payday so the till is almost dry) as well as taking into account my brand new 2008 Chevy Aveo car loan for $14,500, and about $6,000 in student loan debt that I irresponsibly avoided for 2 years before attempting to make payments. I have another $500 loan out, as well as the credit card debt which is about $2000.
I know, I know... it's not a good place to be for a 22 year old college dropout. Believe me, I know. I'm actively fighting this debt though. As 2008 closed its doors, I closed a 4 year old outstanding credit card bill. So now I have $1200 less debt, and they will stop dragging my credit score down.
That is a different credit card than the one I currently owe on through Bank of America. It was some small company I've never heard of called Clout Financial. They gave me the card and I activated it and never used it. There was a $500 credit limit. No big deal right? Well, after I dropped out of college and drifted from job to job, I used the card to buy gas once or twice and bought some food with it now and then. I decided not to spend any more on the card since I wasn't earning anything to pay off the money I was spending. Well, then I lost track of where to send my payments, I moved like 4 or 5 times, and they lost track of me. Then that card sat there and late payments and overage fees stacked up to about $1200, they sold the debt. Several companies owned the debt since 2005, and now and then one would track me down. I would send them money, and the checks would come back, because the debt had already been passed on. However, last November we finally found eachother and I agreed to pay it off by the end of the year and they reduced it to a clean $900. It's all taken care of now and it feels good to have that burden off of my shoulders.
Back to the topic of my budget. -$22K seems like alot, well, because it is alot. However, as of about six to nine months ago it was in excess of -$27K, so I'm obviously making some great progress. Throughout 2009, I intend on greatly reducing my student loan debt, which is the other dark spot on my credit score. I'm paid ahead so much that my next payment isn't actually due until May 20th... of 2010.
Now, I may have a daunting task ahead of me with this debt. I created this problem for myself and am paying for my misdeeds and irresponsibilities. However, I am nearing financial stability and have allocated funds for fun and entertainment. I also will be returning to the ZLB Plasma center to start donating on a regular basis again. At $65 a week, that's an estimated $260/month and $3120/year in cash. Save lives, get cash... I'm a regular superhero!
This also means I will be in Wichita twice a week, Tuesdays and Fridays, so if anyone is in or around Wichita some night, we'll go hit up the Palace West theater for $2.50 movie tickets! My favorite theater in Wichita. I should get paid for that advertisement...
Budget Goals for 2009: Reduce spending on dining out and re-allocate funds to paying off debt. Let's hope for the best, obviously I got a lot of work ahead of me.
Keep looking to the skies, true believers!
-- "The Erik" Sanburn
1 comment:
Good luck! I'll be checking in!
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