First Real Job...No Idea How to Save

[disneysteve]

Originally Posted by Whitechapel

My XBL membership is paid for
WoW is paid for until the end of the month, then it's 15 a month.
is worth the 15.

You are spending $15/month to play a video game plus whatever you spent for XBL at the same time that you are coming here seeking help to clean up your finances, make ends meet and get out of debt. Do you see the problem here?

$15/month is not worth it. You can't afford it right now. It doesn't matter if you enjoy it. It doesn't matter if all of your friends have it. This is a good example of the kind of thing you need to change going forward.

As for the car, don't let your self be fooled into thinking that you need to spend a certain amount of money to get a car with good mileage. Plenty of cars way cheaper than the one you mentioned get good mileage. In fact, in the long run, it might be cheaper to get a car with worse mileage but at a much lower price. What you save on the car purchase could more than make up for the extra you'll spend on gas. Gas mileage is not nearly as big a deal as people often make it out to be.

[bjl584]

I agree with Steve. Something isn't quite clicking. Unfortunately now isn't the time for luxuries. They will have to wait. You don't have to live like a hermit forever with an old book to read by candlelight for the rest of your life, but for now you may need to take some drastic actions to get back on track.

[graceful]

Originally Posted by bjl584

Just don't fall into the trap of ignoring the TOTAL cost of things like cars, computers, video games, etc. Don't get into the mindset that if the monthly payment looks manageable, then I must be able to afford it.

Here is something to think about. Did you know that Volkswagens are typically more to insure than a similar sedan? Do you know that maintance and repais on a VW is more than on something like a Honda or Toyota? Again, total cost of ownership must be paid attention to. Not only how much does it cost to buy it, but how much it will cost to keep it operational. This mindset must be applied to pretty much everything that you do.

Originally Posted by Whitechapel

I did not think of this. I'm only saying a Passat because 1) the price and 2) the gas mileage. I literally have not done any indepth research on what I want, I'm just settling on a Passat for now because I like what I've seen and the price isn't too horrible. I want a car with good gas mileage, something much bigger than my Cavalier, and something that looks a little nice. This isn't even a priority 1, just something I wanted to begin thinking about so down the road when I can afford it, I'll get exactly what I want.

We have a 2000 VW Passat. It is my DH's baby and he takes EXCELLENT care of it and it will last at least another 10+ years. He does routine maintenance himself. BE AWARE that even the PARTS he orders on-line are more expensive so fixing anything in a shop will be more $$. Even the engine oil he buys is more $$$. Not to mention that unless you are buying a DIESEL engine car, VW cars need PREMIUM grade gas. Can you say cha-ching?!!

I, like you, have almost a 100 mile commute a day. My Honda Insight gets about 45 mpg on regular gas. Each gas up is around 9 gallons of around the low $30 range. It is over $70 every time DH fills up and he only drives the Passat to and from the train station at around the low 20 mpg on premium gas. This is WITH a chipped engine that gives better mpg. I am SOOOO glad I picked the Honda every time I have to fill up.

I thought about a VW TDI wagon when I was car shopping but the higher up front cost and the higher cost of diesel gas deterred me. Glad now after hearing about all the VW recalls.

Also considered the Prius (yuck) purely because of the mileage factor because the mpg is BETTER than my Insight but the upfront cost of the car was about $5000 more. That's a LOT of gas to buy to make up for a 5-10 mpg savings.

Just wanted to put my 2 cents in about the disadvantages of picking the VW Passat in order to "save" money... you won't.

Hopefully your need for a new car is FAR in the future. Once you get your immediate financial house in order, you can then start putting money away for the future replacement car.

We can always DREAM but temper that with reality before you pull the trigger and make the big purchases.

Good luck!

[disneysteve]

Originally Posted by bjl584

for now you may need to take some drastic actions to get back on track.

Just to be clear, cancelling your $15/month WoW membership does not constitute "drastic actions."

[Whitechapel]

Originally Posted by disneysteve

You are spending $15/month to play a video game plus whatever you spent for XBL at the same time that you are coming here seeking help to clean up your finances, make ends meet and get out of debt. Do you see the problem here?

$15/month is not worth it. You can't afford it right now. It doesn't matter if you enjoy it. It doesn't matter if all of your friends have it. This is a good example of the kind of thing you need to change going forward.

As for the car, don't let your self be fooled into thinking that you need to spend a certain amount of money to get a car with good mileage. Plenty of cars way cheaper than the one you mentioned get good mileage. In fact, in the long run, it might be cheaper to get a car with worse mileage but at a much lower price. What you save on the car purchase could more than make up for the extra you'll spend on gas. Gas mileage is not nearly as big a deal as people often make it out to be.

OK. I mean it makes sense. So I will NOT renew my membership when it's up. When my prepaid time is over I'll stop for a while. I was medicorely bored with it, maybe another break is indeed in order. OK. But then what? I go and piss the 15 bucks away on something else. I don't care, and I just screwed myself out of WoW time. See, bad decisions lead to bad spending. Sadly it's all I've known my whole life. I really feel I can't call myself grown up until I get this mess that is my life in order. And you guys can help me fix the financial part of it. Just think one day when everything is finally good you can say what a nightmare you took and got him turned around. Very gratifying! Because I'm not making it east. And I'm forgetful, I literally hand write everything at work. So I'll ask the same question or a similar question, I do not mean any harm. I don't often re-read the entire thread. But I need to stop the bad decisions. I think I should try and stop and thinking if this is a "need" or a "want", and know what budget I have. If it fits in, then great! If not, then I do not need it. The very foundations of good saving are incredibly transparent in me, so I need to work on the basics and at least getting a budget. I have not yet sat down and hammered out something that I thought was any good. I'm stuck on how much I give for each category.

Blah. This whole mess has ruined my day. Not only that, but my roommate Facebooked me this afternoon and is asking for $321. I don't want to list the breakdown of it but he basically wants half a month's rent and half of the rest of the utilities. He is afraid to approach me, so he messages me. He's seen me when I've absolutely lost my mind, so he knows what I am capable of. And he has nothing to be afraid of, I'm kind of medicated right now. It sucks. And it kind of pisses me off that he waits until last minute to ask me for money. I'll just sit him down and tell him I'd be glad to pay him and maybe we can work out a payment plan or something. What do you think I should do, given all the creditors,school loans, and utilities from the past I owe?

Btw, I hate talking about this bipolar ****. But I'm just letting you know how I feel. Either way, I laughed when my mom called it a disease. There has to be some sort of chemical imbalance that happened over a few years. Doctors haven't figured it out in the 2 years I've been seeing them. And you're right, no one's making me talk about it, but I'm an emotional guy, haha. I like feeling to my words.

[Whitechapel]

Originally Posted by disneysteve

Just to be clear, cancelling your $15/month WoW membership does not constitute "drastic actions."

Oh Steve...lol.

I have until 12/1 before it expires. Score!!!!

[disneysteve]

Originally Posted by Whitechapel

I think I should try and stop and thinking if this is a "need" or a "want", and know what budget I have. If it fits in, then great! If not, then I do not need it.

This is essentially how my wife and I "budget". We do not sit down and list exactly where every dollar is going to go. What we do budget is our savings. I can tell you exactly how much goes to which account every month. I can not tell you how much we spend on food or gas or clothing or travel or anything else. It can vary dramatically from month to month. As far as I'm concerned, as long as the savings goals are being met and all bills are being paid in full every month, how the money is getting spent really doesn't matter.

I'm not sure I'd recommend that method to you, though, because I think in order for that to work, you need to have your spending well under control. Otherwise, you'll blow money early in the month and come up short at the end of the month and you'll be screwed.

Have you gotten a copy of Total Money Makeover yet? If not, I'll reiterate that you can get it on half.com for about $2 plus shipping. It is well worth the investment.

[Whitechapel]

Originally Posted by disneysteve

Have you gotten a copy of Total Money Makeover yet? If not, I'll reiterate that you can get it on half.com for about $2 plus shipping. It is well worth the investment.

I just ordered a like-new copy of the 2003 edition for 6 bucks and some change shipped. I had it sent to my new place...man I'm so excited to M O V E finally and get a real bed and my OWN ROOM!!!! This has been a loooooooong 4 months!

[disneysteve]

Originally Posted by Whitechapel

I just ordered a like-new copy of the 2003 edition for 6 bucks and some change shipped. I had it sent to my new place...man I'm so excited to M O V E finally and get a real bed and my OWN ROOM!!!! This has been a loooooooong 4 months!

Good job, and congrats on the move. Read the book. I think it will really help you clean things up and set you on the right path.

[Whitechapel]

Originally Posted by disneysteve

Good job, and congrats on the move. Read the book. I think it will really help you clean things up and set you on the right path.

Thanks man, I should have it sometime early next week I hope! I'm excited to read it!

[graceful]

Originally Posted by Whitechapel

I just ordered a like-new copy of the 2003 edition for 6 bucks and some change shipped. I had it sent to my new place...man I'm so excited to M O V E finally and get a real bed and my OWN ROOM!!!! This has been a loooooooong 4 months!

Congrats on the move. Wishing you the best.

[bjl584]

Good work on ordering that book. It should help you start to change your thinking about money.

[Eric80]

I admire your honesty and the fact that you openly admit that you cant save, a lot of people go through life struggling because they are afraid to ask for help. Do you have debt? I know a friend of mine that had a lot of debt and went to the citizens advice bureau where they also gave her advice on how to save effectively.

[jadet]

Maybe you can directly funnel a portion of your paycheck to a different savings account and not touch it at all.

[charlieh]

It sounds to me like you are on the right track, and at least your actions are consistent with your thinking. Your spending journal is your key to success because you see where the money is going.
As someone who earned substantial paychecks in my twenties I must say that at this point my regrets are from spending money on food. Everywhere I went I blew money on dinners and alcohol that I can never get back. For me it is just not worth it.
At this point I would say max out your 401k. That's the first thing. That will take the cash out of your pocket and become forced savings, this after of course you pay off your credit cards. Ty to stick with having no debt.
One thing you can do is to live on cash. Get rid of the credit cards particularly when you go on nights out with friends. If you can put it on a credit car it is much easier to spend instead of taking out the cash. $100 bucks a night at the bar goes quickly as we all know, but just by eliminating that expense you could have a reasonable down payment on your first apartment in two years.
Speaking of apartment, that 635 per month on housing - is that necessary? How about moving back in with your parents until you can afford to buy? Putting up with another 2 years under your parents roof $600x24 = 15k! Right there that would also be a nice chuck of cash for a down payment on a first home.

[disneysteve]

How about an update OP? What's happening? Have you read Dave Ramsey's book? Have you successfully cut any expenses?

[bjl584]

Originally Posted by disneysteve

How about an update OP? What's happening? Have you read Dave Ramsey's book? Have you successfully cut any expenses?

No activity since 11-16. Hopefully he hasn't gone away.