Financial Responsibility? Just another thing I’m trying to avoid.
August 11, 2008
I had hoped when I read “Why Generation Y is Broke“ I would have a found a nice answer about how our entry-level salaries just aren’t enough to keep us living in cities with ever-increasing costs of living.
Uhh… so not the case. Apparently, “stats indicate our generation’s financial literacy is abysmal, with personal finances to match.”
Well you can imagine my disappointment when I realized the only person I can blame for my financial despair is myself. Harsh.
Mint is clearly not enough to make me fiscally responsible.
Maybe it’s because I’m trying to avoid acceptance of the fact that working full-time is my new life. In two weeks I am not JMU-bound for another year of laughingly low rents and fantastically priced happy hours.
I might not be in the midst of credit card debt (yet) and my student loans still don’t kick in for another three months, but I still can’t seem to get a grasp on my new financial situation. How can I possibly consider saving at a time like this? Even an Internet-based savings account like ING Direct offers isn’t enough to get me saving up.
I’m desperate to figure out how to navigate this transition of learning how to support myself financially, preferably without giving up weekend shopping trips or unlimited text messages. Any suggestions?
-Rachel
Entry Filed under: Finances. .
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1.
Michael Henreckson | August 11, 2008 at 10:21 pm
When it comes to finances, the easiest solution is to find a way to make more money. Unfortunately, that isn’t always as simple as we’d like it to be, because money doesn’t grow on trees.
In my opinion, financial stability is based upon two things, knowing the resources available to you, and living wisely within their limits. To accomplish the first, a personal finance tracking system like Mint, is a big help. I personally prefer a more in depth system like Quicken so that I can keep track of everything down to the tin of coins I have in my closet. If you keep receipts and manually enter every expenditure that you make, you really start thinking twice before throwing that cash away like it does grow on trees. A lot of people don’t do much to track their spending, which amazes me, because it’s become second nature. Thanks to my financially savvy Dad for getting me started on that one.
The second factor, spending wisely, can be greatly helped by implementing the first one, and keeping track of your spending. When you finish one of those weekend shopping trips and realize that the third credit card is maxed out, then it can really make you start thinking. I hate saying no to things I want as much as the next person, but if you are really honest with yourself, there are times when you just have to say no. It might be skipping the new tech-toy you want, or making the trip to the mall a once a month affair instead of every weekend.
We have to make up our minds whether the goal is to make the most out of our income and credit rating, or to live slightly below our income so that we can put ourselves in a slightly more safe position should we run into financial rough waters.
It’s not easy, is it?
2.
Jonathan Gowins | August 12, 2008 at 10:47 am
A tricky situation and not always easy to resolve. It comes down to wants vs needs. You could technically live out of your car and eat beans (on one extreme) or blow all your money on trivial stuff (on the other). I don’t know your finances so it is hard to say, but I HIGHLY recommend “The Automatic Millionaire” by David Bach (you can get it for a buck used on amazon). You don’t necessarily have to get budget crazy or make a lot of money to save a lot. Also, if you are looking for an account with good return, I use a checking account at the credit union I work for (addisonavenue.com) that pays 5.25% up to 25k. Not bad. Good luck!