What To Do With 300 Extra Dollars a Month

Up until today, the greatest feeling I have had to date was the feeling of crossing the finish line after the Chicago Marathon. The feeling of accomplishment, of sheer pride, of knowing that after months and months of rigorous training the goal I had been striving towards had been accomplished, was almost too much to handle. In fact, the feeling was so overwhelming that I cried when it was finished like a big ol' baby. Then again, that's what I do. I cry...a lot.

I always said the only thing that could ever compare to the feeling I experienced on that day would be the feeling of holding my first child in my arms. Because, what else could bring about such intense emotions?! My wedding? Possibly. My first house? Maybe. Finding out I'm going to be saving $300 a month on my loan payment each month? Wait, now THAT can.

Okay, I'm being fairly dramatic, after all I am comparing a monetary issue with the production of LIFE, but then again it's been a HUGE stress on my back for the past year and a half and to have that tremendous stress lifted feels really good. Overwhelmingly good! I may cry actually!

You see, when it came time for me to apply for student loans I found that the only way I was going to get enough money to cover my costs, was to apply for Private Funding. The Federal Government had decided that my parents made too much and therefore, denied me Federal funding. Bastards. Enter, my HUGE chunk of Private Loans which at the time didn't seem like such a bad thing. Then, a year and a half ago, they came into repayment and I found myself with a 13.75% interest rate and a $680 a month loan payment. I could do nothing at the time but sit and stare at them, as consolidating a private loan is about as easy as convincing a gay man to make out with me. Mmmm. Okay bad example. But you get what I'm saying.

But then, about a month ago, Sallie Mae provided me with a rare opportunity to consolidate my Private Loans. I don't know why, but I wasn't going to ask questions and I filled out the consolidation application that day...then found a gay man to make out with. Within a few days I heard back and while I was approved, I was approved with the stipulation that I had a co-signer. They probably got word from the Federal Government that my parents make a butt load of money so now they're trying to dick me out of all they can...but i could just be paranoid.

Anyway, long story short, my parents co-signed and I just got word today that as of October 10, 2007 my loan payments will be dropping $300 and my interest rate down to 9%!!!! The excitement is bursting out of me. Yes, you heard that right, I'm excited to be paying money.

It may not compare to the marathon or my first child...but it feels damn good.

Number Of The Day: 400

Do you guys want to hear something absolutely startling?

Ever since I decided I was going to turn over a new leaf, and teach myself how to save money and spend less I have been paying careful attention to where my money is going and in some cases, documenting said money into a spending journal (read: scratch paper on my desk at work). Taking it one step further, I also went through my bank statements yesterday and consolidated all of my expenses into categories (Bills, Dining Out, Starbucks, Etc) just to see where most of my money is going. I am seriously not kidding about the following statement:

Every month I spend close to $400 on eating out alone.

$400!!!!! Can you guys even imagine throwing away that much money on a monthly basis? And I wonder why throughout this period at my parent's house I wasn't able to save nearly as much money as I had wanted to. $400 is just absurd. I've never heard of such a ridiculous thing! I've always been told from my significant others that "I've never eaten out as much in my entire life as I have since I started dating you" but I always assumed everyone was just exaggerating. After all I didn't think I ate out THAT much.

But my $400 dollar a month restaurant bill seems to prove me wrong.

I am SO thankful that I started doing that little exercise because without it, I seriously don't think I would have ever changed my habits! I never in a million years would have imagined that my love of restaurants was having such a dramatic effect on my checkbook. I'm excited to move into my new apartment and start grocery shopping again, and cooking for myself and hopefully saving a little more money now that I understand how much I can be saving by doing so.

It may be a wake up call a little late in the game, but at least I'm up now.

A Penny Saved is a Concept I Just Don't Understand

Okay two things. 1.) This is my 150th post. woot woot! I'm not really one for anniversaries, or significant numbers so I'm not going to do anything special for this particular post (even though I did make a super fun "100 things about me" list for my 100th post...but that was more so because I like excuses to talk about myself...and the 100th post seemed like the perfect opportunity to do that).

2.) Isn't it ironic that you have to spend money to get a book about personal finance? Okay maybe I'm misusing the word "irony" in this situation but regardless, it sucks that I have to spend even more money (that I don't necessarily have) to learn about how to not spend so much of it!

I have money issues, this is no secret, and for the past few months I have repeatedly complained to this blog, to friends and family, to co-workers, and to anyone that will listen really, about my financial troubles. But the truth of the matter is, I truly have nobody to blame but myself. I spend as if I can...and I totally can't. I love martini bars with the girls and expensive dinners on the weekends. I love driving in the Cabby as often and for as long as I possibly can, and don't think twice when I re-fill my gas tank twice, sometimes three times a week, with the $35 expensive fuel. I eat out 5 times a week for lunch, and occasionally even more than that on the weekends. I buy $250 pairs of jeans, and $200 high heeled shoes and I sadly spend even more than that on my hair every three months. I buy drinks for others when I'm out, go on Vacations that I can't afford, and don't think twice about losing the few dollars that I put through the wash on a daily basis. Yes, the word budget is definitley not one that is in my vocabulary and if I don't start making changes right now while I still can, I'm going to be in major trouble later in life.

Thankfully the only debt I have is one hefty student loan payment each month.

I don't really have a clue on where to start budgeting and that whole investing concept and 401K and blah blah...it frightens me really. But I KNOW that I need to start thinking about these things. I am 25 after all, not 15. SO, I'm starting things off with a trip to Barnes and Noble this evening to purchase some much needed guidance on how to begin my personal finance future and hopefully in the next few months, this blog will consist of POSITIVE money posts, as opposed to the traditional ramblings about how I can't afford the apartment of my dreams because I had to buy a new handbag last month instead =)

Push and Pull

I found an apartment last night that I can’t stop thinking about. It’s on the East Side of Milwaukee on a tree lined street around cute condos and within walking distance to many of my favorite downtown places…including the lake. It has a cute front porch big enough for a comfy chair and a table and a living room with a fireplace, yes a fireplace. The kitchen is bright, big, and sunny and the attached bedroom will easily house my double bed, dresser and nightstand. The bathroom is small, which is probably the only downfall but it’s a small price to pay for a truly adorable apartment.

But I’m not sure I can afford it. Actually I can afford it, but it doesn’t leave much expendable income afterwards; in fact, very little…closer to none. I may not be able to eat very often. Is an adorable apartment in the exact area I want to be worth the extra financial hassle? I don’t know!

The smart decision is probably no. I should be saving money for a house, I should be saving money for a new car, I should be saving money to eat. I should, I should, I should.

But it’s so cute. And I’m not exactly smart with money…ever. But I really should suck it up, learn my lesson, and stop using the “that’s just how I am” excuse huh?

*sigh*

I know, you’re all right. It’s just so damn hard to tame the immediate satisfaction urge within me!!!

I wish that growing up, and moving out of your parent’s house could be handled in the same way as a divorce is. In a situation when one’s financial stability severely overrides that of the other party, it is generally deemed necessary by the courts that the more well-off party continue providing a monetary compensation in order to provide the other with the same status of living as they are now accustomed to living. I think this agreement should apply to broke children moving on with their lives. Then I could have my cute East Side apartment…and maybe an Audi.

And now, I’m whining like a spoiled kid would and yet, I wouldn’t give up my independence for anything, no matter how much I pretend I’d like to. The burden of financial struggle although it sucks, is a great feeling to know that I’m doing it…all by myself. And so, I’ll probably sign this lease, because I can, and I’ll complain about being so broke that I’ve resorted to tearing out magazine perfume samples to make myself smell good. Don’t doubt me, I’ll do it.

Or maybe I won’t…because I never can make a big decision.

Debt Sucks

You know what the most frustrating thing in the world is?

For the past year I have been forking out $680 dollars every month for my student loans. For 12 months at $680 I have given Sallie Mae $8000 for my ridiculously high interest student loan, and the ass raping that accompanies it. Excuse my language. With every humungous check that I write I silently breathe a tiny sigh of relief as I think, that’s one less check I’ll ever have to write them, and I’m that much closer to getting this thing paid off.

And then I looked at my outstanding principal balance today, as I do every month.

And it hasn’t moved.

Not in a year.

In fact, I think it may have even gone up.

WHAT?! UP?!

For an entire year, I have been paying nothing but interest. Sure there are the rare occurrences that I can actually afford to put money towards the principal, but those are few and far between. Instead, I have simply been hurting my checking account simply to keep my student loans in good standing with the credit bureau. My loan remains 5 digits long and painfully expensive and I think it laughs each month as I try desperately to make it disappear.

There is no end in sight.

I want to cry.