Grapeshot said:
Actually, if we did end up setting up a budget. I'd be down with 2 12 packs of beer a week, + food, + gas. I really have no other expenses.
Here's the thing:
You DO have other expenses.
Unless you've got your own power generator, oil rig, chemical plant, pharmacy and dozens of other things, you've got
LOTS of expenses. Your first step is to recognize this.
Step one: Asses your Situation. Sit down one evening, and list all of your utilities and bills. Be realistic, and PAD the numbers. BE HONEST. Planning on having kids? Thinking of a new car? Want to move out of that apartment some day? Time to crack down a little.
Step Two: Track your expenses. Spend the $30 and get Microsoft Money or Quicken and train yourself to use it. Just like people who need to control their eating, tracking it starts the self-referential loop of noticing when how bad you actually get. When you suddenly realize "Cripes! I just spent $210 on an original unopened 1983 Starscream Transformers action figure...and now I can't make the rent!", it hits home. Worse, if you start missing bills, it bites you later. Not just late fees, but your credit rating gets kneed in the junk, and that's not something you recover from easily...take the words of one who knows. Remember, when you ask for credit, people will analyze your revenue and income versus your expenses....better you know ahead of time what you look like on paper, so you don't get a nasty revelation.
Step Three: Plan for disaster. Build up savings by cutting back for a little while. It's suprisingly easy, once you start doing it. Sit back and analyze your 'guilty pleasure' purchases and decide if they were really worth it. D&D Revised books? I use them daily, so Yes. Scourge of Worlds DVD? Watched it several times, so maybe. Kosh Naranek action figure that I've never even taken out of the box, and now has dust on it? No. It could have waited, or never been purchased at all. And don't discount the landslide that late fees can become: I bounce a check here, I get $25 from my bank for doing it, $35 from the creditor I bounced it with, and I still haven't paid the dang bill.
What happens when the car fails? Need a new alternator? Have to get it inspected? Flat tire and you need it towed? Medical problems? And in this market, let's not forget Unemployment. I spent most of 2002 unemployed, and we managed to muddle through. Can you manage that, right now?
And most importantly, pay off your credit cards. Take them out of your wallets, and view them as emergency money. Don't be tempted to use them. At Amazon, remove your credit card information from your account. Pay your bills with actual money, not credit. Some co-workers of mine used to refer to this practice as 'Robbing Peter to pay Paul.' You lose in this practice, in interest costs alone.
Credit cards are not money, they are DEBT-MACHINES.
Understanding this alone will help you. I wish I had followed this advice when I was your age...it would have saved me a lot of heartbreak, later on. Remember the last rule? Every creditor you know can see the last 7 years of your credit history, and Credit Card companies are very influential, here. Your payment history on your card(s) is something that is scrutinized especially closely.
Step Four: Economize, when easy and practical. Shop wisely. Get a BJs/Costco/Sam's Club membership. Clip coupons. Watch the sunday ads. Wait until that digital camera goes on sale, or has a rebate. When brands make no difference, try the less expensive one. I don't skimp on chunk light tuna, but I don't care who makes the brown paper lunch bags or my scotch tape. I'm a firm believer in that you get what you pay for, but some things aren't better just for a name brand. Try not to eat out all the time, if you do. It's expensive, and not all that healthy, as often as not.
Step Five: Pace Yourself. Choose your entertainments wisely. At 23, you probably don't have kids to worry about yet, so go to a matinee showing for a movie, while you still can.
Going out to drink? Look for those cheap draft nights. Lay off the Goldschlagger. Pick the best bang-for-your-buck, entertainment-wise. How often do you actually RE-watch your DVDs? Netflix gets you unlimited rentals for $20 a month, and I know several people who swear by it. A computer game that you play for 60 hours is a good deal, even if it costs $55. An RPG book that you use for 5 hours a week for 6 months is an outstanding deal. A bottle of Captain Morgan and a 2-liter bottle of Coke for say, $35, is a much better deal than going to a bar and spending the same amount for a quarter of that. Instead of going out, have a barbecue and BYO.
Step Six: Set reasonable expectations. Don't try some crazy cold turkey life change to solve your problems. It won't work. Small changes and habit changes add up over time. An attempt to suddenly and drastically alter your lifestyle is going to fail unless some outside circumstance changes it. But if you don't modify your bad spending habits, you'll have that imposed on you.
Hope that helps. These are just some basic guidelines from harsh and bitter life experience. It took me years to get my credit in order, and it's a never-ending battle.
