After another trip to New York this weekend and really puzzling through how anyone at any stage in their life hangs onto money in that city, I started pondering – in true Carrie Bradshaw fashion – about luxury. What is luxury? Is it all about the amount that you pay for something, a good or a service, or is luxury more closely tied to things that you truly enjoy and treating yourself to them. To satisfy my curiosity, I discovered that the etymology of the word luxury stems from the Latin luxus for excess. (one of my dream jobs would be the lexiconographers with the NYT mag). Both meanings are in the dictionary – the condition of abundance, having excess, or more than enough for your own comfort – and the condition of indulging oneself in something that provides pleasure. Still, an indulgence at least implies excess – the idea that you don’t need it, but you let yourself have it.
I’m prepared to contemplate some more positive definitions of what I deem luxurious. I hope always to have little luxuries in my life – but I would never aspire to excess. Ultimately I think of luxury more like a scale – that tips towards excess on the far end. It’s a recurring thought in my mind when I go shopping – that I could never spend certain amounts of money on certain items. For me, a nice $100 handbag that I don’t buy at Target is a luxury. The $500 Kate Spade bag I really salivate over is just plain excess. With the new budget, I have to get serious about discipline too. So I will probably be putting off both luxuries and excess purchases of any kind!
Monday, June 30, 2008
Sunday, June 29, 2008
While I Was Out...
So in my blogging absence, I realized I’d also missed out on a lot of great stuff by my fellow pf folk, so I digested this for myself – three of my tried and true daily read’s and a new find! Hopefully some of you enjoy as well:
MFA or Bust
Appreciated the thoughts on "the financial responsibility funk". And can definitely appreciate bringing someone else into the wisdom of budgeting. I recently had to teach the Guy how to shop for groceries. His ridiculous spending habits come to the forefront once we reach those sliding glass doors. And he is notorious for never buying enough to last him for several meals, so that he has to go back to the grocery store prior to every single meal he prepares. Thus it is almost economical for him to go out to eat for every meal!
Piggy Bank Blues
The short & sweet link from Piggy Bank Blues on Credit Card myths was great – and also lead me to this link: The 15 Most Rewarding Credit Cards. I was happy to see that my new Starwood Amex made the list! Made me feel justified in going after that one even though it meant opening up a new card. I have graduated through a number of credit card myths and predispositions.
My attitude at college graduation: All credit cards are bad. I will pay everything with debit (and in so doing, never built up any positive credit history). My attitude 1 year out: Alright I have a credit card – but I’m only going to have one. All the cards out there are probably the same and only give me small change kind of rewards for my purchases. My attitude now: I have three cards, with different reward structures, and I pay them all off entirely on a schedule, with each new paycheck. I don’t know if I’ve hit the credit card Shangri-la yet, but I’m at least in a lot better place.
Feminist Finance
A smart post on why you shouldn’t read the tea leaves on future policy in a candidate’s personal finance records. Doh. I should write smarter posts.
Always the Planner
This was a new blog that I had never read before – and definitely a fan of now. I especially liked this post: “What’s worth it?” and it basically summarizes my philosophy on spending and saving and why I don’t buy into the idea that everyone needs to give up their $4 lattes. If that makes your day that much happier, and you can skrimp elsewhere, all the better. Lately, I’ve also been feeling daunted at how little discipline I have when it comes to not spending on certain things. But this helped re-energize me with the idea of thinking of what I REALLY want to spend on – a $40 cab ride or $40 worth traveling in Argentina. (Oh I like the idea of “No Spend Days” too. I might have to take that for a spin.)
MFA or Bust
Appreciated the thoughts on "the financial responsibility funk". And can definitely appreciate bringing someone else into the wisdom of budgeting. I recently had to teach the Guy how to shop for groceries. His ridiculous spending habits come to the forefront once we reach those sliding glass doors. And he is notorious for never buying enough to last him for several meals, so that he has to go back to the grocery store prior to every single meal he prepares. Thus it is almost economical for him to go out to eat for every meal!
Piggy Bank Blues
The short & sweet link from Piggy Bank Blues on Credit Card myths was great – and also lead me to this link: The 15 Most Rewarding Credit Cards. I was happy to see that my new Starwood Amex made the list! Made me feel justified in going after that one even though it meant opening up a new card. I have graduated through a number of credit card myths and predispositions.
My attitude at college graduation: All credit cards are bad. I will pay everything with debit (and in so doing, never built up any positive credit history). My attitude 1 year out: Alright I have a credit card – but I’m only going to have one. All the cards out there are probably the same and only give me small change kind of rewards for my purchases. My attitude now: I have three cards, with different reward structures, and I pay them all off entirely on a schedule, with each new paycheck. I don’t know if I’ve hit the credit card Shangri-la yet, but I’m at least in a lot better place.
Feminist Finance
A smart post on why you shouldn’t read the tea leaves on future policy in a candidate’s personal finance records. Doh. I should write smarter posts.
Always the Planner
This was a new blog that I had never read before – and definitely a fan of now. I especially liked this post: “What’s worth it?” and it basically summarizes my philosophy on spending and saving and why I don’t buy into the idea that everyone needs to give up their $4 lattes. If that makes your day that much happier, and you can skrimp elsewhere, all the better. Lately, I’ve also been feeling daunted at how little discipline I have when it comes to not spending on certain things. But this helped re-energize me with the idea of thinking of what I REALLY want to spend on – a $40 cab ride or $40 worth traveling in Argentina. (Oh I like the idea of “No Spend Days” too. I might have to take that for a spin.)
Monday, June 23, 2008
Budget Bonanza
I finally laid out my monthly cashflow and it isn’t pretty. I took an average of the last three months and laid everything out.
In March: I saved an additional $13 over my expenses and automatic savings goals.
In April: I spent $131 more than I made.
In May: I spent $193 more than I made.
NOT a good trajectory.
So I have revised down to a pretty radical budget (for me), which I’ll be implementing immediately (although June is pretty much over and I’m set to be way over.) So starting with July, I’m hoping to turn this around in a big way... I think the biggest problem areas for me are going to be:
- Eating Out (because who likes thinking about money when they’re out with friends?)
- Clothing/Shoes (already been feeling like my wardrobe needs a refresh in a few categories, and I’m going to New York and Cape Cod in the next few weeks)
But to compensate, my stretch goal is to knock down a few more categories:
In March: I saved an additional $13 over my expenses and automatic savings goals.
In April: I spent $131 more than I made.
In May: I spent $193 more than I made.
NOT a good trajectory.
So I have revised down to a pretty radical budget (for me), which I’ll be implementing immediately (although June is pretty much over and I’m set to be way over.) So starting with July, I’m hoping to turn this around in a big way... I think the biggest problem areas for me are going to be:
- Eating Out (because who likes thinking about money when they’re out with friends?)
- Clothing/Shoes (already been feeling like my wardrobe needs a refresh in a few categories, and I’m going to New York and Cape Cod in the next few weeks)
But to compensate, my stretch goal is to knock down a few more categories:
- Personal Care – Down to 75
- ATM – Down to 40
- Car Maintenance – hopefully nothing else happens with my car…
I think I’ve been pretty reasonable here, but anyone see any glaring categories?
- ATM – Down to 40
- Car Maintenance – hopefully nothing else happens with my car…
I think I’ve been pretty reasonable here, but anyone see any glaring categories?
Tuesday, June 17, 2008
Net Worth Update + June Goals
I just updated my Networth, after not having done it for awhile… up to $38,273! In part, I hadn’t updated it because I have been discouraged lately, as my cash keeps going down. It was encouraging to see that where my liquid assets have gone down, my retirement savings and the rest of my assets have gone up. My company gave me a little bit of extra stock for an award I received recently. And bonus time is coming up! Not that my bonus will be much to speak of. But still, it will be a nice boost.
So, back to the downer of my cash diminishing… I haven’t quite been able to figure it out. I haven’t done anything different, and yet my emergency savings have been depleted to 67% of my goal, and I’m still at only 5% of my B-school savings goal. To diagnose my little issue, I think the only major reason I’m seeing my savings decline instead of grow is that… I haven’t done anything different. And, surprise - costs are going up everywhere. Remedy = doing something different.
GOALS for the rest of the month:
1) When my end of year work bonus comes in, I’m committing to devote 60% to B-School Savings, 30% to the E-Fund and 10% towards something fun!
2) Try to carpool 2x a week instead of one.
And now for the doozy…
3) Give up alcohol for the remainder of the month.
I know this seems crazy, but it’s only the remainder of the month. And I’m 24, not an alcoholic! AND this will serve my other *secret* goal of losing five pounds before I spend the week with the Guy’s parents for the 4th of July…
So, back to the downer of my cash diminishing… I haven’t quite been able to figure it out. I haven’t done anything different, and yet my emergency savings have been depleted to 67% of my goal, and I’m still at only 5% of my B-school savings goal. To diagnose my little issue, I think the only major reason I’m seeing my savings decline instead of grow is that… I haven’t done anything different. And, surprise - costs are going up everywhere. Remedy = doing something different.
GOALS for the rest of the month:
1) When my end of year work bonus comes in, I’m committing to devote 60% to B-School Savings, 30% to the E-Fund and 10% towards something fun!
2) Try to carpool 2x a week instead of one.
And now for the doozy…
3) Give up alcohol for the remainder of the month.
I know this seems crazy, but it’s only the remainder of the month. And I’m 24, not an alcoholic! AND this will serve my other *secret* goal of losing five pounds before I spend the week with the Guy’s parents for the 4th of July…
Monday, June 16, 2008
Depleting Finances, Fear & Harry Potter
I passed the 2-year anniversary of my graduation date a few days ago. This year JK Rowling delivered the commencement address – I read the transcript and safe to say, she was much more interesting than MY commencement day speaker, Jim Lehrer. The best excerpt I found was related to the tricky balance between one’s personal finances and the fear of depleting them (or perhaps more explicitly – the fear of failing) that keeps us from doing what we really want to do
“Poverty entails fear, and stress, and sometimes depression; it means a thousand petty humiliations and hardships. Climbing out of poverty by your own efforts, that is indeed something on which to pride yourself, but poverty itself is romanticised only by fools... What I feared most for myself at your age was not poverty, but failure.”
Later, when she did indeed fail, she talked about “The Fringe Benefits of Failure,” the fact that:
“Failure meant a stripping away of the inessential. I stopped pretending to myself that I was anything other than what I was, and began to direct all my energy into finishing the only work that mattered to me.”
I found that absolutely beautiful. It has me newly committed to getting back to writing. With the economy spiraling a bit, I'm sure many can testify to the fact that security in our finances has become increasingly valued above satisfaction with how we earn our money. Not saying that everyone should quit their jobs to write stories about fairy wizards, but it's good fodder for dinner table discussion at least...
“Poverty entails fear, and stress, and sometimes depression; it means a thousand petty humiliations and hardships. Climbing out of poverty by your own efforts, that is indeed something on which to pride yourself, but poverty itself is romanticised only by fools... What I feared most for myself at your age was not poverty, but failure.”
Later, when she did indeed fail, she talked about “The Fringe Benefits of Failure,” the fact that:
“Failure meant a stripping away of the inessential. I stopped pretending to myself that I was anything other than what I was, and began to direct all my energy into finishing the only work that mattered to me.”
I found that absolutely beautiful. It has me newly committed to getting back to writing. With the economy spiraling a bit, I'm sure many can testify to the fact that security in our finances has become increasingly valued above satisfaction with how we earn our money. Not saying that everyone should quit their jobs to write stories about fairy wizards, but it's good fodder for dinner table discussion at least...
Sunday, June 15, 2008
Sabbatical Explanatory / Books I've Read
Apologies for my little sabbatical from blogging. I have some good excuses and some blah ones, but I'm officially back on the bandwagon, and here’s what I was doing the last month and a half:
1) Essays were released for Harvard Business School. So I spent about 10% of my time actually thinking about how I’m going to answer the questions and 80% of my time stressing about the fact that they are released and the time is ticking. The other 10% devoted to nail-biting and drinking.
2) Watching Boston sports and the Democratic showdown with baited breath. Various Red Sox v. Yankees, Obama v. Hillary match-ups, and the NBA Finals only getting started now… a lot of laziness in front of the tube ensued.
3) Developing and perfecting my cupcake menu for my little side business, which I now have up and running and you can see here @ All Mine BabyCakes. For now I’m just doing local orders, that’s Twin Cities MN. So all of the other Bookish supporters out there will have to just salivate at the screen. More to come on me getting this off the ground. And THANK YOU for all of the encouraging notes you’ve left for me! It's gotten me out of my embarassed little rut.
4) Enjoying the beginnings of (what could be called) summer in Minnesota. Which includes reading…this month it was The Geography of Bliss by Eric Weiner. This really wonderful travel-lit about what elements of a country’s culture contribute to its happiness or lack thereof. It’s not a “how-to-be-happy” guide, which I’m always half-way expecting out of these kind of tomes. But a nice thinker about what elements of happiness we can change, and when location can affect that. This just made me want to accommodate a few more trips into my travel budget (Did you know Iceland is one of the happiest countries?)
1) Essays were released for Harvard Business School. So I spent about 10% of my time actually thinking about how I’m going to answer the questions and 80% of my time stressing about the fact that they are released and the time is ticking. The other 10% devoted to nail-biting and drinking.
2) Watching Boston sports and the Democratic showdown with baited breath. Various Red Sox v. Yankees, Obama v. Hillary match-ups, and the NBA Finals only getting started now… a lot of laziness in front of the tube ensued.
3) Developing and perfecting my cupcake menu for my little side business, which I now have up and running and you can see here @ All Mine BabyCakes. For now I’m just doing local orders, that’s Twin Cities MN. So all of the other Bookish supporters out there will have to just salivate at the screen. More to come on me getting this off the ground. And THANK YOU for all of the encouraging notes you’ve left for me! It's gotten me out of my embarassed little rut.
4) Enjoying the beginnings of (what could be called) summer in Minnesota. Which includes reading…this month it was The Geography of Bliss by Eric Weiner. This really wonderful travel-lit about what elements of a country’s culture contribute to its happiness or lack thereof. It’s not a “how-to-be-happy” guide, which I’m always half-way expecting out of these kind of tomes. But a nice thinker about what elements of happiness we can change, and when location can affect that. This just made me want to accommodate a few more trips into my travel budget (Did you know Iceland is one of the happiest countries?)
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