2015 – Here We Go

Ouch Annual Budget

Was chatting with an online friend on twitter earlier. He mentioned a book recommendation to me. Ramit Sethi’s I Will Teach You To Be Rich. Despite having read it years ago I hadn’t put together a mock annual budget. So I did that while watching Blacklist and with Suze Orman episodes playing in the background.

Some observations:

  • I eat out way too damn much. At work I can get a hot meal by using a microwave. The same at home. With a place of my own I can get used to inviting friends over more without feeling any guilt. Over $5k on food alone over the course of a year. I could see that in NY or SF if I was earning a six figure income, but I’m in Texas and not…. Some people are able to feed a single person on $100 a month. I might need to adopt some of these principles into my own life. Live in the richest country in the world and I’m in financial deficit.
  • That monthly budget is paying the minimum on my student loan which I am adamant about not doing. $800 – $1000 is my monthly goal. The townhouse equity payments are helping toward that. I pay an extra $100-125 a week without thinking twice about it.
  • I’m smarter with how I spend my money than I give myself credit for. Since starting this blog I’ve made about $20k in student loan payments. Yes I drive a new car but it’s at 0% and the total amount is less than 30% of my gross.
  • I’m impatient. Soon will be year 14 of owing student loans to Sallie Mae / Navient. Done with these fuckers. Should’ve paid them off years ago. My original goal was 2010 while still living with my parents. Quitting my job, getting a really shitty job and a slightly less shitty job, then moving to DFW and no job for 6 months before getting a shitty job that bounced my paycheck were a series of obstacles I had to face. It’s been a few years but during the middle of the process it was extremely painful and very much fresh in my mind. I don’t believe in job security anymore. In the grand scheme of life, only my individual skills will keep me employed. I see new grads from college landing jobs with starting pay higher than my own. My conclusion is working on my skills is an absolute must. Salary only increased 2% last year. Another 2% increase is nothing. Without letting greed or bitterness into the equation, it’s time to go hard. Learning from people who have already done it and getting ideas.

It’s 4AM and I need sleep. Thanks all for reading. I wish you a happy and safe 2015!

 

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2 thoughts on “2015 – Here We Go

  1. I didn’t know about the workplace bouncing your checks, oh my god!

    Yes, eating out can KILL your budget. I rarely eat out anymore, and my friends are good about suggesting we eat in, etc., or just going out for dessert, as they know I’m trying to pay off some major debt. As long as you know you are going to drive that car for a good long time, then the investment in it will pay off. You will hopefully save a lot on maintenance costs over the next few years while you are KILLING it on your debt.

    If it makes you feel better, I’ve been paying on my loans for 17 years now. So believe me, I know how you feel.

    I thought you were going to be bought out about the townhouse?

    • Yeah, I realize the sapping ability of eating out now that I’ve done it a lot less. It’s one thing when your combined income is around $160k/yr. A lot different when it drops to the 50s and have debt on top of that. Yep, that was the icing on the cake. Hopefully later this year I get all the money back that is owed to me. 17 years wow. That is quite a feat. The car I won’t keep forever but 8 years I think is totally doable. I have about $15k left on the loan @ 0% so it’s not like my friend who currently owes $31k on his car and it’s at 4%.

      I am being bought out. Getting the money biweekly increments. Up to $6k out of $16k. So exactly $10k left to go. On a positive note I shouldn’t have to use any of that for my monthly expenses starting February, so I can apply it directly toward the loan. I opened a separate savings account that I am shuffling money into each week for the loan. Was doing it out of my regular checking, but that makes it a little harder to discipline.

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