I mentioned in my last post that I've been intent on keeping close track of my finances, for reasons I've revisited through reading Generation Debt.
I've been a penny-pincher since I was a little girl. It's a small portion of my inherited worry-wort status. I've been feeling vindicated lately, though, because I'm beginning to realize that A. there IS cause for concern in this economic climate and B. it IS possible to let activism fill up that space inside of me that it usually reserved for money worries.
Without getting to statistical on you at the moment, I can tell you that this is a bad time, financially, to be coming into my own, as is any member of this generation. Evidence of this is all around us. Is anyone you know stuck in the vortex of living at home, waiting for job prospects to open for them? I can personally count a few, and my mother has told me on several occasions that she frequently speaks with parents of other adrift 23 year olds who are waiting for their financial situation to be such that they can move out and take care of themselves. These parents are worried about their children, and with good cause!
Admittedly, some of the children of these concerned parents never made it to college, but many of them did, and are now in the hole by tens of thousands of dollars. Others, who may be more fortunate, are out on their own, but have also accumulated enough debt with which to buy a small house. I know someone like that quite personally.
It's tough for me to imagine a bright and shiny future with said person, as the staggering amount of debt is a huge sticking point for a money-grubber like myself. I am not in the minority, by the way, of 20-somethings who are putting off important steps in life, like buying house or getting married (although my feelings on marriage as a social institution are nothing close to rosy, and that is for another post altogether). Many other people like me do want marriage and family, which is an admiral goal. But how can they get started if they are mired in debt and the cost of raising children is so high?
All of these issues are personal. When we look at the political sphere, things get much, much more ugly. For one, Social Security is likely to be tapped out by the boomer generation, who are aging at time when medical costs are at their highest and the span of a lifetime is much, much longer. We're headed toward a serious crisis on that account
Our potential employers can sense it too. Full-time permanent employment rates are way down, and health care is hard to come by. Temp jobs, which are low-paid and do not offer a retirement package or health plan, are increasingly taking up the space of "real jobs." This isn't even to mention the rise in big-businesses (like our beloved Starbucks and Walmart) which drive down the wages of employees.
Meanwhile, the wolves (in the forms of creditors) are at our door, enticing us with free credit card offers and pre-approved loans. Just the other day, someone offered me $29,546 in financial aid to purchase the car of my dreams.
I am lucky enough to have made it through with no debt at all, thanks to my parents, who, unlike many people's parents, have been married to each other for 27 years. This admittedly sets me apart from lots of people, and frees me from some of life's more excruciating hassles. While I am starting even, I do realize that, in order to stay ahead in this game and ensure my own social welfare, I must begin NOW and do all I can to plan ahead.
So here are a few goals that I've taken on. I'm sharing them online to encourage whomever reads this to take finances seriously, and learn to rely only on themselves for financial security.
*Adhere to a strict food budget. It really does take a big chunk out of one's bank account to eat out all the time. When I first started working at my new job, I felt finally free enough to go out to lunch regularly. In the first two weeks of this behavior, I probably spent around $130.00 total. After all is said and done, this money seems to have gone up in flames. I have rededicated myself to brown-bagging lunches.
In order to make home made lunches fun and interesting, I firstly grant myself one day a week to eat out. On the other days, I fix an easy lunch that consists of half a bowl of soup, with a cup of rice added to it for bulk, a homemade Greek salad, and a piece of fruit. I plan to add soy yogurt and a melange of peanuts and raisins to my at-work diet.
*Consider clothing an investment--no reckless spending! I try to buy only well fitting, well-made clothes that are built to last. Even though they are more expensive up front, nothing is more stupid than buying something that fits only okay because it's on sale. In the end, your dollar amount per article will decrease the more you wear it.
* Drop the purchases of luxury items, like lattes, bottled water, magazines, etc. This is hard at first, but I try to remember that a penny saved is a penny earned.
*Curtail the nights on the town, and try to find other homebody friends. At the very least, try to find cheaper bars, and always try to steer towards less expensive eateries.
*Make fewer trips to the ATM. When the cash is gone, it's gone, so budget!!
*Plan as many no-cards days as possible. I leave my debit card at home on purpose sometimes.
*Save, save, save! I use my rent and bills as a bench mark for how much money I really need. Everything that's left over goes straight into savings. When I hit the $1000 mark in savings, I plan to open a money market account that has higher interest per dollar.
As a result of all of the above reasons, I was able to save $500 of last month's paycheck. I realize that if I make it a goal to have as much in savings as I possibly can, it actually becomes a game for me to figure out how to navigate my life in this consumerist world without spending recklessly. Hopefully this is a trend that will continue, as I gain responsibility for myself, instead of relying on outside factors to get my by later. I think that kind of power is kinda cool, you know?
