One Down

And one more to go!

While  I'll be very VERY happy when exams are done, I've actually enjoyed being a student again this week. I know working towards getting my degree was far more stressful than being a student is currently for me, so it's not like I'm looking at it through (completely) rose tinted glasses, but my life was much simpler as a student.

I'll take that back a step further, I miss being a kid.

I think hitting that point is part of growing up though. When you're younger, you can't wait to be older. When you're older, you longingly look back at being younger. That right there is the reason why I've been spending more time appreciating what I have right now. For the time being I'll accept having pimples over wrinkles, and while I have debt I'm happy I smartened up at a young enough age to turn it around and fix it. I've learned things over the years, and I have many more ahead of me where I look forward to doing the same.

I never went to the university President's "town hall meeting" while I was in University full time, but I'm going to head down there today with a friend of mine.

Actually, that friend deserves a shout out. Congratulations Randy Reichardt on being unanimously nominated the Special Library Association's (SLA) Engineering Libriarian of the Year (That's internationally).

You deserve it Randy. 100%

Lessons Learned

If your outgo exceeds your income, your upkeep will be your downfall.

Truer words were never spoken. My grandfather has said that to me many times, but for whatever reason it didn't stick properly. It would have been great if it had! The last year and a half have been a huge learning opportunity for me. It took me a solid month to write the last two posts, because it was a hard pill to swallow. I dug myself into $19,000 of consumer debt in 1 year. 1 STINKING YEAR!

I get nauseated just thinking about it, but I have to do it. If I didn't think about it, I wouldn't learn anything from it, and I'd be setting myself up to fall again. God only knows where the floor would be next time.

Thankfully, I have managed to learn a few things from this experience. Hopefully in sharing them with you all I can prevent someone else from having to learn it the hard way.

You Need A Budget

This is a surprise to no one. At least, it should be a surprise to no one. This doesn't mean that you need to be categorized and itemized down to the cent in a fancy budgeting program, this just means that you need to know how much is coming in, and where it is going. If your income just barely covers your costs, should you really be going on that ski trip or buying a new wardrobe? Probably not. But unless you know where your money is and where its going are you going to be able to turn it down? Again, probably not.


Be Aware Of Your Income

Different incomes can afford different lifestyles, this isn't a surprise for anyone. Readjusting to a lifestyle on a lower income when you've been riding high for a while... that can be a bit of a shock, and not a pleasant one. It requires being cognizant of how much money you have (budget anyone?), and what it will afford. Anyone changing to a job with lower pay, losing hours, or losing a job altogether will have to deal with this at some point, its best to walk into it with your eyes open.

Life Changes Require Buffers

That lifestyle adjustment I mentioned above takes time, and time is money. Getting adjusted before the change, or having some money put aside to help with the change, will be a HUGE asset. Likewise, if there is another major change coming, such as buying a house or welcoming a baby into the world, you'll want a buffer. Chances are it's going to cost you more than you expect.

Get It In Writing

I thought I had learned this lesson while I was working up north, but apparently I didn't. If it's not written into a contract, it's not guaranteed. Overtime, bonuses, and other perks sound fine and dandy when you're negotiating your wage, but unless you get it in writing you can't rely on it. You need to make sure that you can cover your bases using what's on the page, and what's on the page only. Anything else is gravy.

Distinguish Between Needs and Wants

This one really is a gimme.

I NEED enough food that my body can function properly.
I WANT that Starbucks Chai Latte in the morning because they're yummy...

I NEED enough clothing to keep me appropriately dressed for work and the elements.
I WANT that Lululemon top even though I already have a closet full of clothes

I NEED some way of communicating with people
I WANT an iPhone and MacBook Air.

See where I'm going with this?

If You Can't Afford It Now, Chances Are You Can't Afford It Later

What is actually different between now and later? Are you getting a raise? Is there an inheritance coming? Are you going to cut something out of your daily spending habits? Are your expenses suddenly going to drop?

Is anything different? At all?

If nothing is different, and you can't afford something now, how is it you expect to be able to afford it later when the credit card bill comes in? The easiest answer to this is you can't. Especially when the next payday comes around and there is something else you want...

Find Healthy Outlets For Stress

I use shopping as an outlet for stress. It's a horrible fall back, and I'm actually not sure when it started. I can pinpoint when I started using debt for consumer spending, but I can't pinpoint when I started using shopping as an outlet for stress.

I know there are many, healthier, ways of dealing with it. Exercise it one of the better ones, and I find going to a yoga class or going for a run definitely help me cope with things better. So does getting a hug from a loved one. Seriously, hugs are my emotional/mental saviour. I'd probably be a total nut case if it wasn't for the occasional personal contact.
If I don't deal with the stress issue, my spending goes through the roof. Funny enough though, I don't always have to buy consumer items to get that relief. A little while back I was feeling stressed about my finances, so I put a little more money on one of my debts. It's like I'm slowly buying back my freedom, and it worked to sooth my nerves. Any action that reduces the stress levels without getting you further into trouble is good in my books.

Speak Up

Chances are if you have/had a high paying job, you also have friends with high paying jobs. They may want to do things they automatically assume you can afford, because they can afford to. They're not going to know otherwise until you actually speak up that you can't afford it, so do it! You just might find that some of them are in the same boat as you, and are grateful you spoke up.

Control Your Impulses

And for that matter your daily habits. Do you cave and buy something every time you walk past a bakery or coffee shop? This week try just walking past it once. Maybe on a Tuesday. Just see if you can do it once (I know you can). Once you've done it, try it again next week. Maybe on a Thursday. The point of this is to show yourself that you don't NEED to cave every time you walk by. You are strong enough to say no. Willpower is like a muscle; the more you use it the stronger it gets. You might find after doing it for a while you won't have to make a conscious effort anymore and it will just come naturally.

Plan For The Future

Long story short: it's coming, so get ready.

Whether it's an old jar you put your recycling money into, or an investment account you throw half of your paycheck into, everyone needs to save something. Retirement, investments and emergencies all require money, and it doesn't appear out of nowhere. Despite how it may feel every little bit helps, so snowflake away. You'll be glad you did one day.


Anyway, that's what I've learned over the last year and a half. I'm sure there are more lessons in my future, but for now I'm doing my best to apply these ones.

Month End - March 2011

An interesting thing happened while I was at work yesterday. As those of you who were reading back in February know, I signed up for the Ride to Conquer Cancer, a 200km bike ride fundraising money for cancer research. I was in a meeting yesterday with my coworkers/coparticipants, working on fundraising ideas. The discussion of team jerseys came up, and their cost. A minimum order is 12 jerseys, and there aren't that many of us riding, so we'd each have to order 2 in order to get them. Their (discounted) price is $65 a piece, or $130 a person. All around the table was a chorus of "Oh, that's a lot of money", "I don't know if I have that kind of money right now", "I'm maxed out".


I'm impressed.


I'm not impressed that $130 is financially tight for most of us, but I'm impressed that they're willing to say that rather than just putting it on credit. Some of the other places I've worked you would be looked down upon for saying that, like you were being cheap. It's much easier when you're working with a group that is receptive to hearing your concerns.


So thank you PF community for being the receptive ear (eye?) for me to talk to about my financial worries. I really appreciate it.


Anyway, welcome to the March edition of how the financial ball is bouncing:

	31-Mar-10	28-Feb-11	31-Mar-11
Chequing	$116.66	$661.78	$166.51
Savings 1	$0.24	$0.26	$0.26
Savings 2	$100.00	$0.90	$0.90
Savings 3	$500.00	$0.07	$580.07
Investment	$2,189.67	$1,256.02	$1,362.91
TFSA	$0.00	$2,522.19	$2,514.04
RRSP 1	$1,525.96	$1,642.74	$1,649.01
RRSP 2	$3,868.08	$4,038.05	$4,027.81
RRSP 3	$0.00	$667.42	$889.90
ASSETS	$8,300.61	$10,789.43	$11,191.41
Car Loan	($13,138.27)	($9,034.03)	($8,665.84)
LOC	($10,000.00)	($11,000.00)	($10,950.00)
Credit Card	($5,155.65)	($4,301.76)	($4,030.33)
DEBTS	($28,293.92)	($24,335.79)	($23,646.17)
Net Worth	($19,993.31)	($13,546.36)	($12,454.76)

One thing you might notice is that my starting tally is officially 1 year old today. In that time frame I've improved my net worth by little over $7500. It seems like a bit of a measly sum for a year's worth of work, but it's also because my net worth went down further last year before it started coming back up. I've got a set of posts mostly written for next week explaining how/why I got into debt in the first place. To be completely honest, it was stressful writing them, and quite embarrassing. It will probably turn into a 3 post set, because I'm thinking I want to talk about what I learned as a result of it.


Anyway, the big winner in the account department last month was my Emergency Savings account which went from $0.07, to $580.07. It could have been sitting at $800, but I decided at the last minute to put some extra money towards my credit card. I didn't follow the game plan I set out last month to a T, but it's still a move in a positive direction. *shovels money*


It feels good knowing I've at least gotten somewhere in the last year.

Back Again

Wow, what a week.

I've been sorely neglecting my blog, not because I didn't have anything to write, but because I just haven't had 2 minutes to do it. I worked late friday, then worked all weekend on a construction site (continuing currently, I just have the evening off).

Despite running my butt off at work, I've actually had a decent amount of reflection time. Largely the habits I fall back into under certain circumstances. It's amazing how much habit plays into my money handling. I already know that when I'm stressed I spend money. It's a fairly well proven link, especially when I'm dealing with personal issues.

Relationship or work stress = Cassie needs new clothes/makeup/food/Starbucks to make herself feel better.

Does it fix anything? Not really, unless I got things that were missing from my wardrobe/cupboard. It's a temporary salve to give me a momentary perk up when I'm feeling really low. I can control when the perks come, even if I don't feel that I can control the external stressors in my life. The important part here, in my mind, isn't actually stopping the flow of perks. It's knowing when to take the reigns on the stressors that feel out of my reach, and knocking them around before the perks become a daily necessity to make up for the fact that life sucks.

To clarify, my life doesn't suck. In fact I've been reflecting a lot lately on how good I actually have it.

I'm pretty sure that most of us know that if you give yourself perks too often, they eventually lose their perkiness. Then they just become part of daily life. Then you need something different, possibly bigger, to give yourself that high again. That's a dangerous cycle. Even if you don't run out of money, the perks will eventually lose their effectiveness and no matter what you buy you won't be able to get that feeling anymore.

Don't ask me how I know that. Let's just say I've had to beat around my stressors before.

But that's big picture obvious spending. Lately I've been paying attention to my less obvious spending habits. Situational spending. I almost never eat out for lunch or dinner while I'm at work. While I've been on site? Almost half of my meals have been purchased. Why? It's quick, I don't have to think about it, and I don't have to spend any time preparing for it. That right there is probably the reason why I gained a full dress size on my first post-university construction job.

I had KFC for lunch today. I hate KFC. Why did I do it? It was there. I know full well that I know better, but for some reason I've associated being on site with eating out. If I make any more money than usual on site it will be minimal, so it's not like it's something I can easily get away with. It's a BAD habit.

So what do I do about it?

Well, I'll have to find something I can bring to work that satisfies me in a similar fashion to fast food. Lets face it, when you're freezing cold sitting in a truck eating lunch, a salad or jam sandwich isn't going to have the same appeal as a hot, salty, greasy meal. It just isn't. We don't have a microwave on site, let alone a lunchroom, so whatever you pack is probably going to be cold when you get to it. A thermos of soup would be a great meal, but I've always found it to be cumbersome eating soup in a truck. That thermos would be great for some chai tea to warm me up though, in fact I'll be getting it out tonight for exactly that. As for the meal itself *shrug* I need to figure out what I can eat cold that will fix that salt tooth. Chances are I'd just drink the tea. It's a bad habit, yes, but I'm just being honest here.

I've been thinking about my morning tea routine at the University as well. It's not nearly as expensive, but it is something I just do at the University. I don't normally buy drinks in the morning when I'm going to work. At school I do. It's a weird little idiosyncrasy of mine.

What's kind of funny is that both the tea at the university and eating out on construction sites used to be perks for me. Now I automatically assume them to go hand in hand. It's a habit. It's something I have to be more aware of.

Man I'm tired. I'm going to sleep now. At least when I'm not tired I'm more likely to make better financial decisions. Yep, definitely going to sleep Now.