Taking the plunge | Personal Finance and Budgeting 101

I’ve decided to take the plunge and start writing about my own personal finance situation.  So let’s get this out of the way quickly: I’m only 25 and I have a negative net worth.  Right now, at this exact moment, I’m worth -$14,572.37.

Phew!  It feels good to get that off my chest.  Like many 25 year olds trying to figure out where it is exactly we’re supposed to go these days, I have a boat load of student loans, a car payment that is higher than I’d like, and pretty minimal savings.  Suffice to say, if I were to lose my job right now (knock on wood!!) I would probably be moving back into the basement at my parent’s house.  Sorry Mom!

Unlike some 25 year olds, I decided that this was not going to work for me.  No way, no how!  I have a degree in economics for crying out loud.  I work in the finance industry (As if this means anything these days)!  I think there is something resembling common sense in my head.  I needed a plan.

Then I remembered: I had a mint.com account!  I had already been tracking my spending for two years.  That’s how I’d start, a budget!

Holy Cow.  I was spending too much money on everything.  By some miracle I had managed to avoid living off of credit cards but my savings were paltry.  I had a good job, a good salary, how had it come to this?

This is where you, my reader, will come in.  Obviously, I need to keep myself accountable.  I need someone to yell at me if I spend too much, if I break my own rule, or if I just wander off the reservation a bit too much.

Today begins my journey towards the following:

1. A Positive net worth

2. Three months worth of emergency savings

3.  No debt (outside of a future mortgage)

 

Now that we’ve established that you, my anonymous reader, are going to be my financial conscience, let’s get to work.  Time to start saving.  That’s how this works, right?

 

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