Money Makes the World Go Around September 26, 2006 ~ 10:14 am
Posted by Julie in : About a Julz, Deep Thoughts , trackback
Berry Pond ~ Pittsfield, MA
We are, as of Thursday, exactly two weeks away from my new contract kicking in. This means that on October 12, Julie will be getting a nice big check that includes retro pay from the past four years. Well, sorta. 2% of the raise apparently goes right into my union’s welfare fund and we never see it. And since the retro pay and the regular paycheck are combined into one, I’m going to get slammed on taxes. Hopefully I’ll see some of it back in February…I can never remember if I’m supposed to have my Withholding set to ‘0′ or ‘1′ to get that. Anyway, the retro money is going to be used to pay down (or maybe off, depending on how much I get) my credit card bills. I keep telling myself that this is the responsible way to be, that if I pay off the credit cards I’ll have more money every month and I will be able to afford that new 80 GB iPod soon. Julie does not like being responsible when she wants a new fun toy, so this is also a test of willpower. It kinda sucks.
I was thinking a few weekends back what a luxury it must be to have all the money you need to pay off bills each month and then money leftover to buy things that you want without even thinking about it. I’ve never had that kind of money. I’ll grant you, I have enough cash to make more than the minimum payment on my credit cards and pay the utilities, the rent, and the student loan payment with a bit left over, but I blow through that bit left over like no one’s business. I like to buy new books. I enjoy getting new clothes. I hit yarn stores fairly regularly. I even cop to going to the drugstore to get fun toiletries like John Frieda Vibrant Red color glaze. But in the grand scheme of things, these are little. What would it be like to be able to buy furniture if I wanted it, without having to forego my little expenditures? I’ve been needing a new dresser and nightstand for ages, but I don’t have the money necessary to get them. So, like most people, I go without the bigger items.
I know that if I lived anywhere in the country but New York City, my salary would allow me to have the luxuries. I would be able to buy a house, a car, all sorts of things. But I love where I live too much to leave it. This is a city where if you make less than $50K, you’re below the poverty line. I can’t think of one person I know in New York who makes $50K (okay, wait, I can, but she doesn’t count since she’s not a friend, merely someone I have to associate with on occasion). Several of us (myself included) are closing in on it, but we’re not there yet. Is it because we don’t have the extra money that we view it as security? It’s not all-consuming for me, since I do have a certain amount of disposable income, but I do spend a decent amount of time thinking about it. I know I’m not alone on this one, since many of us are living paycheck to paycheck and/or in debt.
What do you guys think about this? Is money security for you, or could you care less? What would do if you had all the money necessary for bills and a lot left over every month? Would you spend it? Put it in savings? Invest? What?
Comments
I no longer have any credit card debt, but with the money I was saving, it ended up going towards medical bills instead. The only good thing about that is that nobody can tack interest on medical expenses and I now owe less than $300.00.
Because I want to move an build a new house, I’ve stopped buying all the little meaningless things that I thought would make me happy. I do buy a couple books each month, and will spend money on things like updating my computers anti-virus software, but other than that, I’d rather have the money on the bank then spending it on frivilous stuff that doesn’t have any value. It’s just stuff and too much stuff leads to clutter. Clutter leads to a messy house and I don’t want to spend more time cleaning than I have to.
In your case, if you really want a new dresser and or nightstand, add up all the money you spend on yarn and other things that are not really neccesary. You’ll find out really fast that over a month or so you’d probably have a good amount saved for the bigger things that you’d like to have.
i.e- If you spend $3.00 for a cup of coffee 5 times a week, that is $15.00 saved. Over the course of a month, you have $40.00. Save that for 4 months, and you could find a decent nightstand or possibly a dresser, depending on where you look.
Can’t tell you how to spend your money, but resisting the little temptations can help quite a bit.
Funny you should ask. Given that we’re shortly leaving the other most expensive region in the US, and given that my paycheck isn’t really going to change all that much, we’ve had to make some decisions about what to do wtih the “extra” money.
Here’s what we came up with:
1. Put necessary money into a “house” account with auto-payments for the mortgage and household expenses. That account will also be the one used for groceries.
2. Put $50-$100 per paycheck into an 529i college savings account for Emily.
3. Each keep an “allowance” account for our fun stuff–books, yarn, coffees, lunches out, scrapbook supplies, etc.
4. Put away an as-yet-undetermined amount each paycheck into a “We Want To Take a Trip To Europe” account.
And that about covers it!
Stacy~No doubt, but being able to buy the little things spread out over the month makes me happier than one big item would (unless it was an iPod, which would not be useful, but holy Hera, would it be fun!). I’m completely irrational like that. According to Redbook this month, I am a Binge-er as far as spending style. If I cut out spending entirely, I get miserable and then am much more likely to spend on something I don’t have the money for.
Dude: I have been trying to put some in savings, shop, travel, and pay the good ole credit card…I have been thinking about investing some of my savings. But basically it is about making money to pay my ridiculous rent every month…that’s where 90% of it goes. But I do need to pay off the credit card cause that’s just dumb to continue to pay that minimum…I should just take money out of savings and just do it. But I can’t seem to make myself. Plus, I have a credit card that has no interest for like a year. Oh, finances. I think I’ll go buy a purse.
And that is why Lori is my friend. That, and she knows what it’s like to spend an entire paycheck on rent. *sigh*
Aimee~Those all seem like things I would do. We, too are sympatico.
Yeah. I’m with Lori.
Lori–make the minimums while there’s no interest on the credit card, leave your money in savings to earn some interest, but as soon as the year is up, take money out of savings and pay off the card balance. Your money earns less in savings than you’d pay in interest on the card. And, um, can I come with you to buy that purse? I could use a new one, too!
The Wife and I went through our debt phase and are glad to be out of it. I try not to think to much about money. With us, it’s more about living within our means. We’re lucky enough now that we can afford the house and some nice things as well as set some money aside. But it ain’t easy. And there’s some things we can’t get cause we can’t afford it (you know, like the $2500 Brian May guitar). Getting rid of you credit card bills is probably the best thing you can do as the interest on that can kill you. Once they’re paid off, you should put the money in savings or an investment.
Keep in mind, being able to buy a car doesn’t mean you can afford a car…goddamn insurance…
Money scares the bejeebus out of me. I’m lucky enough to have that extra money after my hellish rent and other bills, and I do save a good amount every month, but I always worry that I’m not saving enough. And I mean, always. Even when I’m going through a spendy phase.
I’m not taking care of anyone else, but nor is anyone else taking care of me. I have to make sure that I can afford to live for years on end, because no one else will make sure of that for me. I go for days on end without even spending $1.25 on soda b/c I know over time that can add up and what if I’m 60 without money for my mortgage?
KtP~Rent is so bad here that I know a number of people (myself included) who have to dip into savings every month to make it. It’s an ugly cycle…put $100 into savings every month, take $200 out.
Vince~Once the credit cards are paid off, it’s onto the $50K in student loan payments. There will be saving, and hopefully I’ll be able to keep money in savings after I get the raise, but the money I owe never ends.
Aimee is Smart. And reminding me that we didn’t buy a purse on Canal Street. Hmmm.
Oh damn. I forgot about that! Well, I trust you to take care of that before we all meet up again in November. Yeah?
If I made 50 grand a year here, I’d be rolling in it! As it is, I normally make inbetween 35-40. I have two kids, a car payment, rent, bills, credit cards(which I usually get paid off before I buy more with them) and I buy too much crap(the binging like you said). I still manage to put money into my savings, and if I take it out, I try to put it right back in and just feel the pinch for two weeks till the next paycheck. I am not as disciplined as I’d like to be, but I am getting better. There is a sense of satisfaction to have a savings account with actual money in it!
But I want for nothing, really. I need a new dresser, and if I pulled money out of my savings, or decided NOT to splurge for halloween this year, I could easily have one. It’s just not my priority. Once it is, I will make it happen!
But I plan on putting my tax refund into my car payment to give me an extra 250$ a month. And I take a 0 withholding, so they take the MOSTEST out. 0 means NO dependants, yourself included, so they tax you MORE since it’s all play money without dependants, right?
For the first time in my life, though, money has not been a major problem for me. I am 31, so it took me almost 30 years to get there. Rock on small town USA.
If I see something I want bad enough, I’ll buy it….otherwise, I’ll think about it. I didn’t think twice though about those ILAA 5* passes for my upcoming Lep show…nosirrrrrreeeeee!!!
I’ve always been a ‘bargain shopper’ anyway….as far as clothes go. I refuse to pay $60 for something I know will be about $20 in a few months.
We went through the scratching by phase for so long that when we finally came out of it the extra went into the retirement funds, the house or the “I quit fund”. The latter has been quite handy while the remodel has been happening. Thrift is so ingrained in us now though that most aquisitions come from thrift stores and garage sales - although there are some very notable exceptions like computers and cameras. There is a book “Your money or your life” that has been helpful in reestablishing the relationship between money and time spent earning it.
You don’t even want me to get on my rant about being broker than the 10 commandments tablet over here. It seems like every month, there’s at least one bill that is late, and I try to alternate so it’s never the same one consistently or my electricity, cable and everything else would’ve been shut off a long time ago. I can’t even make payments towards student loans, so I’ve got those in deferrment. My car payment is killing me, but thank god I only have one more to go. It’s sad, I have to budget to even buy things I need. More than once, I’ve had to get groceries and could only spend $20 for the week. You try making a week’s worth of groceries cost less than $20 (yep, ramen noodles and easy mac was on the menu a *LOT* that week, as was cereal.). It’s just sad not being able to take the cats to the vet because I can’t afford it, having to wear raggedy shoes because I can’t even afford to do buy new ones, even though I need good shoes to do my job and not kill my body. I tell you, being single and broke really sucks. I need a new job, but hopefully the interview I had today will come through and pay more steadily than the massage therapy has done for me. Debt sucks.
If I had extra money, I’d pay off all my credit cards (which are maxed out from paying bills I couldn’t afford to make with my pathetic income - I officially made $15,000 last year), my student loans, and move myself back to PA. Then I’d buy all new furniture so that none of the stuff I have would have memories of my ex attached to them. I’d get my cats fully vaccinated and checked up. And if I had enough money, I”d start my own spa and take all the continuing education classes I want in massage and make myself the best massage therapist EVAH.
I want money….. lots and lots of money..
Colleen–what size shoes do you wear?
Julie, me dear, know you’re in good company thinking about all this.
And do consider this - it doesn’t matter if one’s rent/mortgage in VT is lower than anything you’d find in NYC - IF one’s job pays jack squat. It’s all relative. I found out real fast years ago that shopping at the Goodwill is smart if you want a new piece of clothes now and again (much of what I buy there and other used clothing stores is brand new - you just have to get good at spotting the good shit) AND there are still incredible buys in used book stores (tho’ don’t look for any fiber/knitting books in Ann Arbor, Michigan ’cause over the years I bought them all and there were some real keepers, I can tell ya.)
Jenny~Very true about the salary being relative as well as the cost of living. Let me amend, if I had the same type of job as I have now, and lived somewhere else, I would be living the high life.
Leenie~Still have everything crossed for your job hunt. I know the budgeting juggle well. Back when I was living with Shawn and trying to save up enough money to move, I cut off cable, my long distance, cut my cell back to the bare minimum, cut out all unnecessary expenses, kept myself to a strict budget every month, and basically lived like a hermit for several months. That sucked ass, but at least it let me get the hell out of that apartment. I’ve gotten rid of long distance on my landline now to save some cash, and am trying to budget, but it’s tough. You know exactly what I’m talking about, I know. Hang in there…not too long until you can move back to PA.
Seamus~That’s something I miss: thrift strore shopping and garage sale hunting. I’ve seen one thrift store here, and it was the grungiest grimiest thing ever, with nothing good in it. And the stoop sales are not so great, either. New Yorkers do not know what they’re missing.
Kim~Me, too, re: the clothes. I am sale girl at Gap and Old Navy, and do the big coupon shopping at New York & Company. Nothing like a sale rush!
J-Me~Thanks for explaining the withholding, I understand now.
And what you said about the dresser is exactly how I feel. I want a new dresser, but it’s not a burning desire. In the meantime, the dresser I have (which my dad apparently found in his parents’ house when I was born, so no telling how old the damn thing is) will serve the purpose of keeping clothes off the floor.
Aimee~Maybe that will be ESC’s wedding present.
Congrats on the extra bit of income! “Mo Money” is generally always good news even if there are “Mo Taxes” associated with it.
The Englishman and I are those people you referred to who are able to pay off all the bills every month and still have money leftover to make whimsical purchases. Yes, it’s nice to be able to have the option of saving 35% of your income, however, I can also tell you that the financial “worries” never really go away - they just seem to change into new ones or they may stay the same with new thresholds. For example, when I was in college I started to feel a little panicked when I was down to my last $100. When I started working, that went up to $1000. Now that I’m married and fairly established, well, let’s just say it’s gone up again.
We rarely spend the extra we have and if we do, it’s not very much of it - maybe $50 here and there. Typically, anything bigger than that (like when we bought our new cars), we plan for in advance and cut back on purchases. That way the savings doesn’t drop below our set minimum and we don’t have to finance much if any of the purchase.
One person I really enjoy listening to is Suze Orman. I think she gives pretty good advice and tells it like it is. She has a book called The Money Book for the Young, Fabulous, & Broke. I’ve heard is pretty good but I haven’t had a chance to give it a read yet.
I constantly say to myself “I don’t live high, yet I’m constantly watching my money… what’s with that?”
New York City is what’s what. This place is PRICEY.
Savings, to buy a house or something meaningful, so I could get a nice tax refund for the mortgage interest. Hey, your lucky at least. Down here the city takes some sort of 3% tax if you live or work in the city. Now thats rich.
Aimee, I wear size 10 1/2 to 11, depending on the shoe. why do you ask?