I learn
When I was first out in the world on my own, I started
reading heaps of personal money management books. It got so I would just wander over to the
section of the Dewy Decimal System in the library to see if there was something
I hadn’t read that caught my interest.
Most of them say the same thing in different ways, so after you’ve read
five, you can move into skimming mode once you hit say, the “how to budget”
section. From time to time I dip back in
if a book interests me. I’ve gleaned
good advice from these books, and all for free.
Thank you, public library system.
If you are looking for somewhere to start I recommend Your Money or Your Life, All Your Worth by Warren and Tyagi. I
have also found the debt-free philosophy of Mary Hunt to be inspiring. Also, anything by Suze Ormon is good. You can also follow my example and find the
personal finance section at your local library and choose books at random.
I save
Since my first job in high school, I’ve always put some
percentage of money aside. Not that the
money has always gone toward my far-future.
In fact, the savings from that first job financed my personal spending
in college. I’ve saved various
percentages of income over the years, from as little as $50.00 per month during
the grim, incredibly boring and low-paying job I got after graduate school all
the way up to 20% of my net pay in a brief heady time when I finished paying
for my certificate program and other things hadn’t cropped up. With all that saving, I’m probably sitting on
a pretty big pile of cash right now, right?
Not so much. Though it’s a bigger
pile then I’ve ever had.
In my mind, “saving money” is a particular thing where you
put money aside and never, ever touch that money so it grows and grows until
you retire when you can use it. I’ve
never met that standard with my savings.
A graph of my savings account over the last ten years would show peaks
and valleys. For instance, I saved over
$5,000 to fund my move from Massachusetts to Portland. Well done!
Those were the years where I had no debt and my living expenses were
quite low. I made the most of my
savings, concerned about the many potential expenses that could crop up during
the move. So the move took up $2,200.00 of
the savings and the subsequent unemployment while looking for work ate away at
some of the rest. I took on temporary
work and the company hired me and I had a brief period of saving until I
entered graduate school.
Beginning with graduate school, I began to draw down the
savings. This was not an easy time for
me. Once, while once again withdrawing
money from savings, I sighed while handing over my paperwork. The bank teller inquired as to what was
wrong.
“I hate having to pull money out of savings.” I told him.
“But that’s the point of savings accounts,” he replied, “so
you can draw from them when you need them.”
This concept was exactly the opposite of my “put money in
account never touching it until you retire” savings concept, but I had to
conclude that he was right. Without that
savings account I would have exited graduate school with not only student loan
debt, but also credit card debt. It’s
always better when you can be your own emergency credit card and I still hear
that bank teller’s words from time to time today.
So the savings account was humbled by graduate school, but
the six months of unemployment following graduate school made an ever bigger
dent. I counted on steady temporary
work, as I always had found in the past, but temp work didn’t materialize over
the summer. Nor did any jobs. The temporary work picked up in the late
autumn, giving me a new appreciation for the paycheck incredibly mundane tasks
provides. Then I made a rather large
financial mistake and took a job I was extremely overqualified for.
In my year and a half as a secretary, I went slowly crazy,
both from boredom and disgust at my pay rate.
I was paid less than $10.00 per hour, which at the time was only a few
dollars over Oregon minimum wage. I’ve
never had to watch my finances so closely.
My rent took nearly half of my gross pay and I shopped carefully for
everything. If I had loved the job, or
even liked it, I would have done these things happily, but there was little
work to do at my workplace and that made the scrimping even more grim. I was barely putting anything aside, and my
goal to save $5,000 was being fed by a trickle of $50.00 per month. I didn’t want to do the math to see how long
that would take.
Things improved when my boyfriend and I moved in
together. The rent we paid together on
our one bedroom was only a bit more than I paid on my studio and sharing
expenses really gave me some breathing room.
I eventually landed my current job, which came with an $8,000 per year
pay raise and my savings could begin again in earnest. Over the last six years, the graph of savings
has been more of a steady upward climb, though it has dipped now and again, as
things have cropped up. I accept those
dips, and set my course to recover the savings as soon as I am able.
Savings. It is not my natural inclination. I am sure you are not shocked by that statement. We do save, and we are getting better as of late, but it is never enough. Retirement savings is something I have been good about, contributing to my state fund and a 403B for much of the last 8 years of my employment. When I first came to Arlington, they had a pretty good matching system. Which was happily shocking to me for a public school system. It has since dwindled quite a bit, but we still get a touch of money each month. I am proud that I have been systematic about it and that the money is growing. It will never be enough for retirement, so it seems. But it will be a start.
ReplyDeleteIt is helpful to me to hear your bank teller's kindly pragmatic remark. This is a strange financial year for me, as I am living almost exclusively on savings and on a painfully "earned" windfall, and it feels precarious and slightly immoral to be spending money without saving, or, indeed, earning. I frequently have to step back and look at my alternatives, and conclude once again that this is the greatest value that money can provide right now. And then I wonder how long I can keep it up, and how on earth I will return to a more typical earning/saving lifestyle -- how I will get there from here. So far I am still early in my experimental year and thus on solid justification grounds. I get the feeling the sense of relief and certainty will get shakier as the pile of savings dwindles.
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