Day 1 - Rehab. Step 1: Admitting There is a problem...
Every year, I promise and swear this is going to be the year I do better - spend less money on bullshit, save for retirement and stick to a budget. And clearly, I also manage to fail that little "resolution" each year. I am attempting something a little different this year - taking my Rehab public. It is my hope that with the support of the "intimate" online community, I can put myself in a better financial position.
Lets start with the basics:
- There are simply things I should/could do better. This is bout being better - not about being perfect
- I have 1-2 months of salary available (liquid) for emergencies
- I fully funded my Roths for 2013-2014
- I direct deposit/pre-tax/contribute to Retirement account
- I direct deposit to my savings account
- My bills are all paid - excluding this new medical bill that randomly popped up
So, for once - I have the basics in order - ya know, all the ones that people rant and rave aboout. If you are reading this looking for inspiration on how to get started, I will have to post a blog or two about that shortly. But, trust me: I learned every financial lesson the hard way.
If you are in dyer financial straights, you are probably reading this and saying, "Um... What the hell is the problem?! I don't even have this sort of financial security - let alone are all my bills paid." And I can appreciate that. I appreciate that - BECAUSE I HAVE BEEN THERE. I am not going to romanticize it or give you a pep talk. I am simply saying that I need to do better from where I am standing right now. If you want any of the other stuff, let me know :-)
The term "Rehab" indicates that there is a problem - not just some new goals. There is a problem, I spend ENTIRELY TOO MUCH d*mn money. I spend money like its a hobby. Yes, I do save and plan for my spending BUT the themes of my spending are out of order.
My financial goals for 2015:
1. Improve all 3 credit scores by 75-100 points
Now, if you think I plan to post my current credit scores for the entire world to see - think again. Just know that I am not at an 800 nor am I at a 400. In other words, there is room for improvement, but I have enough "credit" (no pun intended) to do get what I need when I need it. Can I buy a brand new home at minimal interest and almost no down payment? No. So....
2. Double my savings
The goal is to have 2 (more) months of income saved - aside form my existing savings - by December 31, 2015. The goal is to have a total of 6 months saved while maintaining my current lifestyle. I haven't figured out how - the hell - I am going to do that, but I think have a plan.
3. Stick a budget (this works well with #2)
I write one hell of a spreadsheet - complete with formulas. What I don't do is stick to it - at all. So, I am resuming the goal of sticking to a budget - even if that means I have to leave my credit/debit cards at home. There is just something so damn appealing about swiping my card whenever I want and getting whatever I want.
4. Do something noteworthy with my money
I am not someone I would label as "Christian" - or anything for that matter. So, I don't tithe 10% of my earnings. (Don't judge) But, I do believe in the idea that for all the b*llsh*t I buy, I need to do something meaningful for other people - or animals (I happen to be a dog lover).
5. Cook!
Since I am also CONSTANTLY on a mission to lose some weight, this will come in handy. But, there is no way for me to accomplish my other goals if I am single-handedly keeping all of the restaurants in Columbus afloat - b/c I am in them all the time. Its not likely that will stop eating out all together (it is important to be realistic), but I don't need to eat out for every single meal. So... Let me swing past the room in my house known as the kitchen.
That is 5 major goals for the start of 2015. I will continue to blog the progress and updates - b/c I know you will keep me honest. Plus, some people have a filter, so while they may have similar goals, they may not be as open to discuss something so personal. (In fact, it amazes me that people act like the road to financial literacy and health is a secret. But, that's another rant for another day.)
I was/am apprehensive about posting this, but I just got some "confirmation" that transparency can be a big deal - b/c my friends just posted a blog that was so transparent I was amazed. (Love you ES and JS!)
Financial Rehab isn't an overnight thing. So, there won't be a daily post - I am aiming for once a week. There is something I can do in each of these categories each week to ensure I meet my goals by the end of 2015. I am excited! I don't claim to be a financial guru or anything, but Lord knows I have done enough dumb sh*t with my money that I (now) take great pride in any accomplishments I make with my money.
