Happy New Year!

I spent the morning contemplating my 2011 financial year in review and deciding what I want to accomplish in 2012. Even though I’m pleased with my progress this past year, I realize now that I set my goals too high and became discouraged along the way, so I decided to do things a little differently this year. First, I wanted to establish some golden rules to help guide me through 2012. Then I chose three big (but attainable) financial goals to work towards. I’m hoping this big picture approach will help me be more successful in achieving my ultimate goal of being debt-free.

2012 Golden Rules

• Absolutely, positively, no credit card usage allowed.
• Any and all tax returns, bonuses, or other windfalls (wishful thinking?) are to be applied towards credit card debt.
• Any money made from blogging will be deposited into the emergency fund.
• No new purses. No exceptions.

2012 Financial Goals

• Pay computer in full. (I broke down and bought an iMac after Christmas. Part necessity, part impulse.)
• Double emergency fund, bringing total to $6,000.
• Reduce credit card debt by 25%.

Do you have any financial goals for 2012? Any advice for me? Please share!

As I’m working on my financial goals for 2012 (I’ll be sharing them in the new year. I hope you will, too.) I thought I’d review my 2011 financial goals. You can follow my progress throughout the year with these posts:

• Q1 update – optimism abounds!
• Q2 update – a reality check is given.
• Q3 update – a somber update.

After reevaluating, here’s what I planned to accomplish in Q4:

• Pay Chase (1 of 3) down by 50%
• Continue regular contributions to 401k
• Increase emergency fund to $4,000

Here’s how Q4 really played out:

• Paid Chase (1 of 3) down by 25%
• Continued regular contributions to 401k
• Held emergency fund stead at $3,000

All in all, not a bad year! In total, here’s what I accomplished:

• Established an emergency fund of $3,000
• Maximized 401k contribution at 4% with company matching
• Paid auto loan (1 of 2) in full
• Reduced credit card debt by approximately 30%
• Finalized divorce and separated finances

How was 2011 for you? Are you in a better place financially now than you were in January?

As I was digging through my piles (and piles) of books last night, I came across Obsessive Consumption: What Did You Buy Today? Its premise is similar to what I do in my weekly Daily Dollars posts except author Kate Bingaman Burt sketches one thing she’s purchased every day. In the introduction, Kate mentions that she struggled, as I did, with documenting all of her purchases for fear of being judged or changing her habits based on those judgments. We both clearly got over it.

I find it very interesting where people spend their money and I think it says a lot about how they prioritize their life so I found the book to be insightful and very meta. It’s also kind of inspiring if you’re interested in getting a hold on your finances. I know that documenting my spending habits has been a real eye-opener and helped me to identify when and where I was wasting money (not that I still don’t on occasion).

She hasn’t updated her blog in several months, but I think the Kate and I would get along smashingly.

Do you document your spending habits? Either in a general budget or a more detailed ledger?

Just some random thoughts after reading a slue of personal finance blogs over the past few days. Thoughts?

There are certain assumptions that some people make when they learn that others live paycheck to paycheck. These are some of my observations and some of the judgments I’ve felt.

• they are financially irresponsible
• they are uneducated
• they work a menial job
• they don’t save
• they spend frivolously
• they don’t know how to budget

I live paycheck to paycheck and I don’t consider myself any of those things.

• I know where every penny of my money is spent
• I have a master’s degree from a Big 10 University (and the student loans to prove it)
• I have a professional career
• I have an emergency account and pay myself first every payday
• I consider purchases carefully
• I’d argue that I’m much more budget conscious than those with money out of sheer necessity

Do you live paycheck to paycheck? (No judgment, obviously.) Do you have a rebuttal? Do you get defensive, (admittedly) as I do? Do you get the same vibe? Do you feel that these are lessening or getting worse as more and more people are living paycheck to paycheck?

Lost or stolen, there are financial repercussions when an item goes missing. Whether it’s a laptop, a phone, or a library book; the cost of replacement is going to impact your budget.

But I’ve noticed a trend – people losing things and saying they have been stolen.

Someone says their laptop was stolen but it was really left on a plane. Someone says their iPhone was stolen but it was really left in a grocery cart. Just because something hasn’t been returned to you doesn’t mean it’s not sitting in a lost and found somewhere. Do we really think that poorly of people? Does it makes us feel better to lay the blame on someone else?

And I won’t even mention the Twitter storm when someone leaves something someplace and blames the retailer/airline/restaurant for its disappearance.

In the words of Kris Humphries (yes, I’m quoting Kim Kardashian’s estranged husband): You shouldn’t own anything you can’t afford to lose.

And I’d add: Or would accuse someone of stealing if lost.

Thoughts?

Photo Source

You know how whenever you move into a new apartment or house you always need something? No matter how fully stocked and functional your last home was there’s always a closet that needs a shelf, a bathroom that needs a rug, or a light fixture that needs a bulb in a different wattage. Well, my divorce is final and my (ex) husband moved out last weekend and I’ve noticed that I’m severely lacking some necessities and want to do some redecorating for a fresh start.

Since money isn’t exactly plentiful, I’ve separated my list into things I’ve purchased, need, and want.

Things I’ve Purchased:

• new bedding – sheets, pillows, bedspread
• silverware

Things I Need:

• towels
• lamps – bedroom and living room
• mattress topper

Things I Want:

• area rug
• bedroom curtains
• kitchen curtains
• artwork for kitchen and living room
• living room television
• living room furniture

What was on your list of priorities the last time you moved (or got divorced)?

I’m broke. Way broke. Definitely broker than a spoke.

So, I’m going all war-time with a new personal mantra to get me through. I even found a blogger, The Non-Consumer Advocate, who uses the snappy little saying as the theme to her entire blog.

What gets you through the tough times? Do you have an inspirational quote or saying that you focus on?

Use it up,
Wear it out,
Make it do,
Or do without!