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Five years ago (or so), I started a Mint.com account to help me start tracking my spending.
Being able to see my spending in cool charts every month motivated me to start making changes in my habits- it kind of became like a game. I didn't feel as much like I was being forced to live on a budget, rather I felt like I wanted to start curbing my needless spending.
I believe there is research that shows that when people track and record their behavior (eating, spending, exercise, etc), it tends to lead to positive changes. Just the act of tacking things tends to lead to change.
Sounds good. You have to start somewhere. I know the food thing is tough, because I enjoy take-out pizza and the like, but it adds up quick. If you want some sticker shock, add up how much you spend dining out and divide that by your monthly food bill. Say you spent $70 for dining out and your total food expenditures equaled $200, including the $70. The dining out would equate to 35% of your total food bill, which is a lot.
Good luck form here.
The dining out is a bad habit. I grew up going out to eat a lot, parents love it, and still do. A lot of my friends like eating out, and we go out to eat together. Last week was just excessive (got billed for and given 12 more wings than I think ordered, so another $7, but I was tired and didn't argue, and she's always gotten my order right). When I was back home last week, I went out to eat with an old neighbor who picked up the tab at a local seafood restaurant. It was over $50/person. Do that once a week for a couple and you have a car payment. I can easily run up a $50 tab with an entree, tip, tax, and a couple drinks. Parents didn't want to eat at home except the one meal before I left - went out to eat three times. If I was rich, I could spend $500/week dining and drinking out without a blinking an eyelash.
If I go out to somewhere like Wild Wings and have one craft beer, after tax and tip, that same beer is the cost of a six pack at Sam's. Buy in bulk, and that one pint of Bell's Oberon may buy seven Oberons in a Sam's 12 pack. Drink Bud Light instead, and you're looking at ten Buds per craft beer out. Alcohol out is just an insane mark up, and booze always sells.
One of my colleagues at my old job complained him and his fiance were always broke. Turns out they were spending $1,000/month dining out. Granted, they're somewhere between $140k-$160k income (she brings in the bacon), but they are basically me with more money.
That's a cultural thing I was raised in and have kept into adulthood - everyone goes out to eat and spends a ton doing so.
We're not Manziel buying high priced bottles at the club - just regular folks going out for a nice meal and a couple drinks a few times a week. That can run into the hundreds of dollars a month.
Congratulation! You're making some progress. How do you climb a mountain? One step at a time. Just remember that, and you'll summit your financial mountain, one dollar at a time.
Quote:
Originally Posted by Serious Conversation
I think one of the problems is that going out no longer feels special because I do it so routinely.
Exactly. Something's not a treat if we do it every day. And in that case, why do it if the enjoyment isn't there? When it comes to eating out, buying new things, going out to movies and concerts, etc., less is ironically more. Keep that in mind, and it will help you stick to your budget. And when you DO eventually splurge, it will be a memorable occasion!
The OP doesn't have the desire to address his financial situation. The solution is two prong and that's increased income and lowering expenses but does not include going into more debt such as buying a house. You need a roommate and to cut out the bs expenses to get back on track. Short of that all you have produce is excuses
Like I said, many of these expenses are essentially locked in, and I think my income is more likely to go down than up. Each time I look at "this pile," I get more discouraged. I plan on researching credit counseling more thoroughly (but the initial look doesn't make me believe it offers much of a help here) and talking to some local BK attorneys. I honestly don't know if it's the right solution, but it doesn't hurt to get their point of view. Unlike some of the moralizing posters here, I don't feel like filing BK is immoral, stealing, etc. Just because I was stupid financially doesn't make me fraudulent or nor should it resign me to a life of absolute penury - that's why BK laws and other such services exist to begin with. Do I need to learn from prior mistakes? Absolutely, but I don't feel worse as a person over it. Obviously I'd rather work this without with that scarlet letter, but it may be the best or only option, especially if my income declines.
Even if I try, I may still fall flat on my face and end up in bankruptcy. This job isn't going as well as I hoped, etc. The bottom could still fall out even if I give it my best effort. All I can do is learn better habits going forward
It could be worse. The majority of this crap is unsecured debt. The other bit is essentially an overpriced car. Another one of my colleagues ran up $120k in student loan debt that can't be discharged and seemed to find that something to brag about, then financed a Mustang GT and a motorcycle last year. At least I do have an emergency out in BK or defaulting then negotiating with the unsecured creditors if it comes that - he doesn't have that.
Congratulation! You're making some progress. How do you climb a mountain? One step at a time. Just remember that, and you'll summit your financial mountain, one dollar at a time.
Exactly. Something's not a treat if we do it every day. And in that case, why do it if the enjoyment isn't there? When it comes to eating out, buying new things, going out to movies and concerts, etc., less is ironically more. Keep that in mind, and it will help you stick to your budget. And when you DO eventually splurge, it will be a memorable occasion!
There are plenty of times I go to Wild Wings on either of the cheap nights (Tues/Thurs) twice a week. I usually get 12 wings @ $.65/each, a couple beers, then a tip/tax, it's $25. If I bring the wings home, we're looking at $8 or so. Have another burger/beer night and a few lunches out or something during the week, and you're looking at $100/week easily.
If that's cut out and I can improve the cash flow somewhat, I can at least stanch the bleeding and buy time.
Like I said, many of these expenses are essentially locked in, and I think my income is more likely to go down than up. Each time I look at "this pile," I get more discouraged. I plan on researching credit counseling more thoroughly (but the initial look doesn't make me believe it offers much of a help here) and talking to some local BK attorneys. I honestly don't know if it's the right solution, but it doesn't hurt to get their point of view. Unlike some of the moralizing posters here, I don't feel like filing BK is immoral, stealing, etc. Just because I was stupid financially doesn't make me fraudulent or nor should it resign me to a life of absolute penury - that's why BK laws and other such services exist to begin with. Do I need to learn from prior mistakes? Absolutely, but I don't feel worse as a person over it. Obviously I'd rather work this without with that scarlet letter, but it may be the best or only option, especially if my income declines.
Even if I try, I may still fall flat on my face and end up in bankruptcy. This job isn't going as well as I hoped, etc. The bottom could still fall out even if I give it my best effort. All I can do is learn better habits going forward
It could be worse. The majority of this crap is unsecured debt. The other bit is essentially an overpriced car. Another one of my colleagues ran up $120k in student loan debt that can't be discharged and seemed to find that something to brag about, then financed a Mustang GT and a motorcycle last year. At least I do have an emergency out in BK or defaulting then negotiating with the unsecured creditors if it comes that - he doesn't have that.
I'm not interested in your friends or colleagues who are in worse shape or also make bad financial decisions and you shouldn't be either. Like I said you don't really want to get your things in order. If you did you'd cut your expenses as they are not all essentially locked in but rather "wants" that you do not want to give up. You'd also rent a room to get on top of things but instead you make excuses. If you made more money it wouldn't help you out of this situation because you'd just blow it as well. You need to change your mindset if you are going to correct things
You're learning a very tough lesson; consumer debt is what decides whether you retire rich or poor. It'll ruin you if you're not careful.
First, rent a room like others have said. You can cut rent in half by doing that. Second, you're spending $200/month on food PLUS eating out 3 nights a week. I bet if you analyze it you're spending $800/month on food, snacks, beer, trips to gas station, etc.
Lastly, and try not to take this personal, but you have 11,000 posts since 2011. I bet you waste a lot of time on the Internet. Get another job to dig yourself out of debt. If you don't get it under control it will consume your life and you'll be in the poorhouse in no time.
After further reading this thread, OP doesn't want to sacrifice to become debt free. Could save ~$1200/month by not eating out and getting roomies, but doesn't want to do that. Have fun in the poorhouse. It's not too lonely there though, you have a lot of company.
There are plenty of times I go to Wild Wings on either of the cheap nights (Tues/Thurs) twice a week. I usually get 12 wings @ $.65/each, a couple beers, then a tip/tax, it's $25. If I bring the wings home, we're looking at $8 or so. Have another burger/beer night and a few lunches out or something during the week, and you're looking at $100/week easily.
Times four weeks, and that's most of your car payment.
Someone earlier in this thread mentioned using Mint. I'd suggest keeping a logbook (on paper or on your iPhone; the latter might be handier, since you have it with you all of the time) and recording every purchase you make, then putting that data into Mint so you can see exactly where all your money goes. I think you'll find that you've been buying lots of small 'extras' that don't seem like much at the cash register, but together make a big hole in your budget.
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