A Diva's Dream: Rags to Riches

I was having dinner with my ex last night and we were talking money. He suggested I take my little bit of savings I have and pay off my credit card and car loan. Both being 19% interest, it does make sense. I am just scared of not having any money in case something happens. For example my car breaks down, or even if I have a bad month at work. 

Now, not having a great deal of knowledge and experience I am asking for your opinion! 
What would you do? Pay off the credit card and some of the car, or keep the savings?

This being my first month with a budget, I wanted to share how ti was going. So far I am just about half way through February, but my budget thinks otherwise. 

I have done well on gas. Filled up ($40.00) on the 1st and then not again until the 10th! Probably will only need one more tank for the month. Bringing me to $120 in gas, and I budgeted $150. As mentioned in my previous post, I will be driving home to get my sister for the weekend. This shouldn't make me go over budget, but right up to it. 

Dining out is going to be my biggest struggle. It is a completely social thing for me. Although the other day I did have a friend over and we made stir fry! We split the cost, so it only ended up costing me $8. I also had some left over the next day for lunch! I also had some friends from out of town and we stayed in and made dinner! 

My health/beauty section is also pretty much maxed out, but due to doctors orders I had go to buy vitamins that cost me $60. These will last me 3 months so it averages out $20 a month. aanndd... I might have taken a trip to the spa.. but I did have a gift card! Mostly only cost me a tip!


I am really impressed that I am tracking everything I spend! Although I now realize how much I spend and it's a little bit scary! I have worked very hard to keep it down though. We will see if I make it to the end of the month. 

Did anyone else have trouble when they first started budgeting? Share!

Like I have said before, and I will say again, and again. I am not going to stop spending. I simply want to control my spending more. I am out of control. I don't think about paying rent or bills until a week before they are due, then struggle to come up with the money. I hate that! I want to have the money in the bank and not have to worry. That my friends, is why I started this, to help me and to encourage me to do just that!

Now my problem, in 2 weeks my little sister has her semi formal at school. Now my parents did it for me, but it is getting harder for my money financially to provide all this to my sister now being a single mom. I feel like she should be given this opportunity and so do my parents. My mom is paying for her ticket, and my dad was getting her a dress. As I talked to her she was telling me about one she really wants, but she has to settle for the one half the price. I know, exactly what we all should do, but when I was growing up, I didn’t have to settle (very much). 

So I decided to invite my sister and her friend to come stay with me for the weekend and we will go shopping here. I do have to pick them up and drop them off, but it would be cheaper then both of them getting a bus. I know they are really excited but I know it’s going to be pricey for me. At this point it is more about the memories of having my sister here and exploring this "big city" with me. 

I remember when I was about 13 or 14 my older sister took me out go the movies and Starbucks. I was so happy and it was such a big deal for me. To this day I still remember every detail. Just knowing that I was important enough for my sister to spend the day with me made me feel so special. Now I want to try to do that for my little sister. 

Although it is going to cost me a little, I am still going to try to keep with somewhat cheap. Making my sister happy is what is most important to me.

So my dining out budget is twice that of groceries. I know, I know, you are all saying thats crazy!! BUT, I do work in a restaurant which I receive 50% off my meals. Also having to work 6 days a week, it is also quite convinent. While having lunch with my dad the other day we were discussing why this is so high. 

Well, if I were to go buy all the ingredients for a certain dish I would like to make, It would generally cost me around $15, depending on what I make. Yes, I would have left overs for a second, third, or maybe even forth meal, but I am not usually home to eat them and they just go bad. So if I order something at work, and eat there, or take it home, I can have that same meal, if not better for about half that price. Also depending on what I order it can be a lot cheaper. 
So this can cut back on food costs for me, and the convince of not actually having to cook for my self! Lets face it.. anyone who knows me, knows I DON'T cook.

For example, a friend and I shared fajitas the other night, even added extra chicken ( we were hungry! ), and for everything it was only $6 each! That included, lettuce, tomatoes, cheese, wraps, onions, peppers, and chicken. I would say thats a good deal for $6 each. Bonus: We didn't have to cook OR clean up! Thats my favorite part! 

So yes my 'dining out' budget is high, but I get better food then I would buy at the grocery store, and for cheaper! For me, it just makes cents! (pun intended, hehe) 

I have seen this on a few blogs and take no credit for coming up with this! I have edited it slightly to make it perfect for me. 
#1 – Finance a dream vacation…in cash

This is top of my list!! I so desperately want to go to the Calgary Stampede. It will be a big chunk of change though, about $2000

#2 – Pay off your student loans

I am sitting at about $17,500 right now with 3 more semesters to go. I plan on paying for my summer semester on my own.  And who knows, if I get good at this saving thing, maybe next years also!

#3 – Automate paying your credit card bill in full

My parents always told me this, but I of course didn't listen and got myself about $500 in debt. Not to bad and I am working to quickly pay that off and get it under control.

#4 – Get rid of all bad debt

I am starting off early with mostly student loans. If I work hard enough at it I will have it all paid off in a few years. 

#5 – Build an adequate emergency fund

I guess you could kind of say I have started. I have about $1500 right now, but it is from my student loan check I recently got, so it will be going back to that soon. 

#6 – Make your first, and last, investment mistake

I am sure this is to come. As of right now I know NOTHING about investing, but it is definitely something I am interested in and want to get involved in. 

#7 – Develop a statement of cash flows

I am working on this, and hopefully by the end of the year I can have an idea of my net worth.  

#8 & 9 Max out a RRSP & Contribute to your TFSA 

To max these out I would need to have them. So getting these are on my to-do list this year! 

#10 – Get a degree or certification that increases your earning power

Working on it! ;)#11 – Take a career risk

Because I am still pretty young, I do not have a career yet.. 

#12 – Negotiate something

I didn't do much negotiating when I bought my car. Maybe a job offer in the future! 

#13 – Earn your first side grand

I assume this will come when I get my full time job, and continue to serve

#14 – Start a sub-savings account for an upcoming financial goal

I have a piggy bank that I put a decent amount in regularly, I have no idea how much is in it, but its there for a rainy day! 

#15 – Set a target retirement date

No date is set in stone, but I am guessing of right now I will be working until 65 at least.  

#16 – Monitor your credit 

I have wanted to get my credit score for a while now. I have a friend who has access to this, maybe I will call him up.. 
#17 – Have at least a 20% down payment for your house.
 I don't think I would do anything less. But I must start this fund!

#18 – Give just enough to make it hurt

I feel like I give to my friends more then people who really need it. For example, picking up the check for dinner because they drove. ($5 in gas vs. $50 dinner) 

Two Milestones for the Over Achiever

#19 – Invest $1 for every $1 you spend

That sounds like a lot of work, I don't know if I am ready for that one!

#20 – Start a 529 College Savings Plan

The day my child is born I will be running to the bank to do this! Wish my parents did that!

I have been inspired by a few blogs I have been following, (Will post links once I get permission) and wanted to start one of my own. If only as a useful tool to keep track of my crazy, busy, hectic life. 

What I am hoping to get from this:

• A way to keep track of and hold me accountable for my finances.
• Make friends in the Personal Finance Blog community. 
• Get out of Debt!
• Be more responsible.
• Have somewhere to share my ideas. 

Now, I would say the way I live is far from starving student. I shop with my friends, we enjoy weekly lunches out, and multiply dinners out a week. I travel at least an hour to see friends a couple times a month. All these things add up, and I am slowly starting to see the impact it is having on my budget. My income is about $20,000 - $23,000 a year (varies because of tips) plus I receive an additional $9500 in student loans. So as my debt creeps higher and higher, I find my closet filling up with clothes, shoes, purses, you name it! Not to mention the occasional tanning trip, or getting my nails done.