Laurence's Personal Finance Blog

Seems like December will be the toughest month to budget for. ( At least to start budgeting in ) Between Christmas shopping, traveling to go home, and other expenses that seem to pop up at the end of the year, it definitely feels like my budget is going to be shot. I have tried to set pretty strict limits as to what I am going to spend for each person, and I know this is really a once a year issue, but it does suck to see your savings just start to grow, and know you are going to cut into it some.

Hopefully by this time next year it will not feel like as big of an issue, plus still feels better than in previous years where I had no idea what amount I would spend, or whether or not I had enough for my bills afterwards. * fingers crossed I may get some kind of Christmas bonus, but I know that is not happening*

The hardest part of this new found financial responsibility is balance. In the past, my typical day was waking up at 5am, working 11-12 hours, and at night eating out, or being out with friends. I have lived in vacation destinations my whole life, so everything was expensive and added up. It also led to a " keeping up with the joneses" mentality, due to most young people here are living off trust funds or dad's money. If there was money, it got spent. Another issue, not an excuse, was that I was in a job ( golf construction) where moving was always a high possibility, so though I dated, I never got too close. I think it really takes knowing my decisions could affect someone else, for the importance of this to sink in. This leads to my issue now.

I have met and been dating a wonderful girl for a couple months and it is getting to be serious. She makes a lot more than I do, and has been a strong saver since she graduated college, so is now starting to reward herself some. I however, am not at that place. She is super supportive of me and my savings goals, but I think I undersold how bad I have really been in the past. I am stuck, where I want to take her out, and do fun things, but am also stressing over every dollar. She is by far the least high maintenance girl I have dated, and does not push me to do a lot, I just don't her to feel like she has to pay, or can't enjoy nice things because she has earned it. I watched my parents fight and stress over money my whole life, and I don't want that for my future wife or kids, but that has also made talking and being open about money tough. I know the correct thing to do is be honest and open, and that is what I will do ( ruined a lot of past relationships by not doing this) but just have a fear of letting people down. I know this has been more of a rambling than a post, but finding this step the hardest in getting financially smart.

Figure this is the best use of my first real blog post, to give an idea of where I am at right now. Not very happy about it, but accountability is part of the reason I am doing this.

Money In:
Salary: $50,000 a year
Side Work: Between $ 150 and $350 a week
Total: Average of $2,500 a month ( after taxes and 401k contribution)

Money Out:
Rent: $550
Car/Insurance: $530
Student Loan: $170
Groceries:$200
Phone/Utilities:$150
Entertainment:$200
Gas/Upkeep: $150
Total: $1950 ( higher this month due to holidays)

Accounts:
Checking: $650 ( Most bills already paid this month, outside car, and still have one more check coming)

Savings 1: $1,245 ( Not great, but considering it only had about $200 a little over a month ago, I am happy with this)

Savings 2: $72 ( This is just a 52 week challenge account that will be used as additional EF, and hopefully can turn into a vacation fund one day)

401k: $9,987 ( This is the most embarrassing to me. I have been employed basically since 2003 ( outside of 2007 through 2009 when i went back to school), but either contributed the bare minimum or never even signed up in past. I now contribute 12 %)

I am sure there are things I left out, but this is basically where I am now, and back as recently as October I was spending over $700 on food alone, so I am trying to clean budget up. If there is anything I should add, or suggestions in general, please let me know.

(P.S. - Because someone asked earlier, I am not married yet, but am in a fairly new but serious relationship ( she is actually very good with saving, and part of the reason I saw the need to change) so some of food costs include 2 people

So here I am, a 34 year old child just now beginning to focus on my finances. This blog is mainly my way to hold myself accountable, but also hopefully can help someone else who is trying to start this journey, or at least share some ideas. For the past ten years, I have made poor decision after poor decision, and am now digging myself out of a hole that I can only blame myself for.

My first step has been starting a budget (mint.com), and almost a month into it, it is nice to see where my money has been going. Now it is all about cutting spending and starting an emergency fund. My goal is to get $6,000 saved in next 12 months. I will post about each day's struggles as well as a weekly update about where I sit savings wise. I would love any followers, or advice I can get.

Laurence