Money Thoughts

*If you don't like reading about other people's money situations, or you're really judgmental-- skip this post. It's my first financial disclosure attempt, okay?*

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Yesterday was payday and I met both financial goals I'd set at the beginning of the month. The student loan people got their $400 (my minimum is $125, but I've finally decided maybe I shouldn't have this debt forever, you know?) and instead of socking away $200 in savings, I sent $500. Go me!

Part of me got a little panicky when I sent the extra money along, knowing I don't get paid again until the end of the month. But then the rest of me told that part to shut up. Dude. I've got it covered.

People, this is so different than my life two years ago. When Brad and I got back together, I was a financial mess. I had zero savings. I had not started a 401K.  I had credit card debts and car payments. And my pay-no-attention style of money management forced me into situations like realizing I only had $100 to get me through a week and a half. Situations that occurred on my "first" date of Brad and Heather 2.0. After I learned Brad 2.0 is in the finance business. Awkward. Worse. Humiliating.

That's when I decided to learn how to budget. After much trial and error, and after I admitted to myself that a ridiculous 20% allotment purely for entertainment was important to me,  I developed a system. I started watching my money. I check my accounts daily and several times a week I scrutinize my budget to make sure I'm on track.  I freely admit I've gotten quite obsessive about it. Not as obsessive as some of my favorite PF blogs I've listed over on the right, but obsessive nonetheless.

Two years later, this is how I handle my money: (Note, this is not a perfect system and is constantly being revised.)

• Now, I'll say I can't afford something when I technically have the cash, because that money has a better place to go. Sometimes I'll splurge, but sometimes it just not worth it to me and I'll say no.  Please don't take it personally. This girl has goals to meet!
• I no longer have credit card balances-- each card is paid off by the end of the month, if not immediately after a purchase is listed. Interest? What's that?
• I contribute regularly to my 401K.
• My car is paid off and I don't plan on having another car payment until it dies a sad little death. Once my emergency fund is fully funded (next month?) I will start setting aside money for this eventuality.
• I keep a $200 cushion in my checking account at all times. Whenever I check my balance, I instantly subtract 200 because it doesn't exist.
• The same bank that has my checking account has savings account #1. This is my true "emergency account" and I keep the balance at $1000. Should my checking ever dip below $200, this is where I go. This is also where I go if I suddenly want to go to the Bahamas and my travel fund doesn't quite have enough saved up. The second this account is used, replenishing it is my priority.
• My savings account #2 is held with ING, which has a higher interest rate and is harder to get to. I really, really need to need that money in order to spend it. So far, I haven't needed to. (Commence wood knocking.) I'm trying to get this to $5000, and then I will send less its way each month, and bulk up the savings for other goals.
• After far too many years pretending my student loans don't exist, I find great delight in watching the balance drop. Getting the balance down to $10,000 is one of my goals for this year.

Basically, 29-year-old me and 31-year-old me would be financial strangers should time and space bend and they should meet.

As I said, the system isn't perfect and sometimes I think about adding a second job just to watch the debt fall faster and the savings pile up. But right now, spending time with Brad, or with my friends and family, or even alone is very important to me, and I'm not yet willing to give that up.

My networth isn't spectacular. It's really  not even mildly impressive. But it's so much better than what it was that my mind still boggles on how far I've come.




 

Warning: All is Not Right in Paradise

One month!

On February 14th (Valentine's Day!), Brad and I will be heading to the airport. Ideally, this mental picture should include inches of snow on the ground, but clear roads and cheerful blue skies. Let's also assume, for now, that the temperature will be hovering somewhere in the single digits. Got it? Because then the two of us--on the commercially most romantic day of the year-- are flying off to an adult-only, all-inclusive Sandals resort in the Bahamas.

I'm more than a little excited.

One month!

We're flying out on a Monday and not coming back until the following Sunday. Our timing is perfect because the day after we return is a federal holiday, so we'll have time to reacclimate. We also have two full weekend days to relax beforehand and get into the vacation mood. (As if that were difficult.)

Do I sound like I'm bragging? Probably. But stay with me, because there's a financial warning hidden in this post.

My first experience with All-inclusive resorts was last year, and I really enjoyed the feeling of eating and drinking whatever I wanted whenever. I know the costs are included in the bill, and non-all-inclusives are cheaper at the outright, and if I stayed in one of them, I could save money by NOT eating at restaurants every day, etc-- but this is VACATION and all-inclusives make me feel pampered and honestly, I'm generally awesome at finding good vacation deals. (Okay, now I'm bragging. But here's the twist.)

This time, I was fooled.

After bopping around the Internet for hours, checking on sites like Expedia and Priceline, I went directly to the Sandals website. "END OF YEAR SALE!" They crooned. "65% off! Companions fly freeeeeee! YAY YOU, BOOK WITH US NOW!" There was even a handy little countdown clock, warning us there was a mere two days left to take advantage of this sale.

By clicking on individual room types, we could instantly see the savings. Like, $4000 worth of savings. We'd already set budgets and new what we were allowing for room and airfaire, and there were deals that fit cozily into these numbers. You know. IF we booked in the next 2 days.

I hadn't been able to find any better deals on the other sites-- Sandals appeared to provide more than what we could afford elsewhere, and we had two friends who had recommended the place. With that stupid little countdown clock ticking away, we both got slightly frenzied and decided to book RIGHT THEN, despite the fact I had yet to secure the days off of work. But damnit, I was saving $4000. I would make this happen.

And we did. We booked. And it was glorious.

That is, until three days later when I revisited the site and saw they reset the countdown clock.

And a week later, when it was reset again.

Go ahead. Look. Check out there site. Once the "Love at Sandals" promo goes away, you'll see it. Counting down to nothing other than when it will be reset.

Those bastards. Is that even LEGAL?

I'm not upset with the amount of money we ended up spending, the place we decided to stay, or the time we chose to go. I am upset that I could have waited and saved myself the stress of worrying something would go wrong with requesting the time off (it didn't.) And I'm upset that I feel tricked.

I didn't get a good deal-- I got a good price. This is fine, I guess. . . but I like deals.

This is one of those first world problems, isn't it? Oh well-- enough complaining. Just learn from me, dear readers. It is NOT the final countdown.