Daily Spending Diary
I divided my spending into four categories. Living expenses, Groceries, Fast-foods and Gifts. The Living expenses are the first one we will discuss. This category included my rent, utilities, car payment, gas and so forth. The things I need or think I need to live. I knew that my expenses were going to be heavy in this category, but it actually came up to 72% of the money I spent over these 8 weeks. This is frightening to me because it does show me I am living above my means. I lost my roommate and I have been struggling to stay afloat. I will have to move to a less expensive place, that is hard for me because I love the space, the garden, having a yard. I have evaluated my current situation and have realized that I may have to live in a place that is not as nice, smaller and possibly even an apartment so that I can save money for a down payment on my own house where I can have the things I mentioned. The sacrifices I will need to make are my opportunity costs for what I will gain in the future. It will benefit me and my daughter to make these sacrifices now. Another factor is that I use part of my student loans for living expenses. I have accumulated a larger sum and want to not take out anymore loans to live, only for school costs. This is my goal for 2013-2014 school year.
The next category was my groceries. This included food, toiletries, laundry soap, and kitty food. This was 17%, I actually felt really good about this category. I considered the things I do to keep this area in check. I write lists when I go to the store; I use coupons and look for good deals. This is area that in my younger years I really have struggled with. I would over extend myself in this area by just buying whatever I wanted without doing any planning. I have learned what works, considering I have a teenager I feel great that this area is under control.
My next category was fast food. I wanted to keep this area completely separate because I know that I have worked really hard to not buy food out, bring drinks from home, and eat before we leave. When I did my budget several years ago this category for me was at 33%. I was a bartender for many years and that lifestyle and the availability of cash taught me to be very irresponsible with my money. When my daughter was younger we just shopped, bought clothes, food, went out to eat. To be honest we bought many things we did not need. When I turned 30 I started to realize the fact that I couldn’t pay bills on time, I had defaulted on loans; I had several issues at that time. This process of taking accountability, cleaning up my credit and paying off my debt has been a long one. I am proud to say that at this point in my life this category was 3%!
My final category is gifts, contributions, and money I give to my daughter. First off I have worked really hard to teach my daughter to be responsible. She is 16, I do pay her car insurance, and she pays for her gas. I split repairs and upkeep with her. These terms are conditional upon her having and keeping her GPA at a 3.5 or higher. The money in this category is buying her something or helping her outside of her responsibilities. This area also includes gifts for weddings, parties and entertainment. Again this area used to be a huge issue for me. I could not pay my bills but I would spend $100 on a gift for a friend. I am proud to say that this area was 8% of the money I spent.
What I have learned is that I need to reevaluate my living expenses. I am living paycheck to paycheck. I rely on student loans because I still have that “look good, be comfy” piece to me. This is not and will not serve my goals of buying a home and being able to help my daughter with college. I am a single Mom and I know that in the past I have been discouraged that I cannot attain my financial goals. I know that with proper management and determination I can make these goals a reality. I feel my education plays a factor in being able to make more money also. I am working toward my Associates of Business and possibly will go on to get my CPA. Growing up with a single mom, renting homes and seeing my Mom never really get ahead is the reason I decided to go to college. I do believe I will overcome the setbacks, re-evaluate and change my goals as life unfolds. I do have mixed feelings about taking out more loans to further my education, but I have started paying interest as it accrues which I believe will be extremely beneficial. I have learned that I need to not only live within a budget, tracking spending but that rent, utilities, car payments are not to be excluding or just deemed as necessity. I do not have any savings, I have no retirement plan, I am 38 and feel I need to make some major changes to provide the stability I desire to be in a safe place. I have recently started a 401k through my current job, I need to be putting much more into it but I realized you have to start somewhere and now is better than never!
