Do you ever fall off the train?

[Radiance]

Hi

I just wanted to share overall progress and my experience since I joined this site (aka, when I was an ignorant and irresponsible spender, still a lot to improve, but much better)

2009 was a year of getting to know with my money. I had no idea how many credit cards I had, let alone the balance on each. I had no idea how much I was spending on any category, you name it, utilities, groceries, gas. I didn’t even know what my categories were!

It was hard at times, frustrating, but oh so worth it. I but myself on a budget and I had a plan and a mission, I got myself out of debt! Well, I still owe my car, but at 5k of balance and 5.5% interest, I decided not to prepay and start an emergency fund since my savings were Zero, nada. I got myself to spend less that what I make and I don’t have any unsecured debt. It feels wonderful.

2010 came by and I thought I was on autopilot, but it turned out I am too rookie to let my guard down. I got divorced, I got distracted with all the emotional mess and I went back to old bad habits. No. thankfully I never used credit again, I have credit allergy now! But I spent all my money, every month. No savings, no 401k, no IRA, no nothing, nada.

Why? Because I thought I was in auto pilot and let my guard down. So now, I need to get myself back on horse, back on budget and get serious about my savings.

Have you ever fall off track? What keeps you motivated and focused?

[littleroc02us]

One word for ya buddy, "Knowledge". I've been there before and I simply just read a book about someone whose been there before and what they did to achieve success again.

[maat55]

It is not uncommon for us to blow money. I am not as tight as I used to be. But, my retirement investing and car fund are not negotiable, they are priority one. Maintaining my emergency fund is also a priority, so my less frugal spending happens around my priorities and does not trump them.

[disneysteve]

It is not uncommon for us to blow money. I am not as tight as I used to be. But, my retirement investing and car fund are not negotiable, they are priority one. Maintaining my emergency fund is also a priority, so my less frugal spending happens around my priorities and does not trump them.

I agree completely. Saving is not negotiable. The best way to do that is to put things on autopilot. 401k contributions come out of your paycheck before you ever see it. You can also set up automatic withdrawals for other savings. That way, the money is gone before you have a chance to spend it.

Does that mean we never splurge or blow money? Of course not. Happens pretty regularly. But, as maat55 said, that doesn't take away from us meeting all of our financial goals and obligations.

[srblanco7]

As my DW likes to remind me, it can't always be about living for tomorrow...

But, investments are always first and bills are always paid.

[Snodog]

Depends what you mean by falling off track. If you mean spending money that wasn't planned and later regretting it then the answer is honestly no. I am like a heat seeking missile with early retirement my destination. Every $1 I spend today is more time at work, and I value my time more than material things.

[MrPolarZero]

Well, lets face, all of us will come to that point at one point or another. I myself did have moments where I ended up spending a lot of money even though I have resolved not to.

[Radiance]

hmm,

I think this time the problem sinply was that i didnt monitor my expenses for a few weeks.
I guess at least once weekly is a must...

[mmgarren@yahoo.com]

I still spend impulsively at times. I've had to watch my finances for years. It is easier but I wouldn't try the autopilot idea. Maybe if you plan small treats for yourself it might reduce the desire to spend impulsively.

[bjl584]

I'm tempted at times. I am a car buff, so I love researching and looking at new cars. You just can't beat that new car smell. I'd love to have a sleek new mid size sedan with all the bells and whistles, but I don't want the payment that would come with it. So, I just keep driving my old friend.

[DebbieL]

Do I ever fall off the wagon with the spending? You bet! Luckily, it is only in short bursts with me, and I get it out of my system. It sounds like you were going through a lot emotionally too, and that can tend to distract you (temporarily).

I think all you really need to do is set a (realistic) budget up for yourself and keep monitoring. If there is a category you always go over in - maybe you should just increase it - that's what I mean by realistic. Make sure there is some fun money in there. It isn't realistic to think you're never going to blow any money.

I think of it like this. I plan for, and hope for a great future - but I also try to live for today. You never know, after all, and I wouldn't want to live like a miser not having any fun and then die in 6 months. Save for the future, and have some fun along the way while you're still young and healthy (I'm assuming).

[disneysteve]

One thing that I've always noticed is that I'm much more likely to overspend with cash which is part of why I greatly prefer credit cards. There is much more accountability with a credit card. I know that a bill will come later and need to be paid and there will be a concrete record of that spending. Cash, though, just slips away. If I'm going somewhere where I might be prone to overspend, I'll make sure to limit how much cash is in my wallet that day.

[MonkeyMama]

I don't think I have ever been off track in the sense spoken by OP.

Reading the other comments, I agree though. "Pay yourself first," is the solution. At the beginning of every year we set goals of how much to send to retirement, savings, etc. We treat those like bills and pay them no matter what. Maybe something happens that means tweaking the goals. Fine, as long as savings comes first. (auto pilot works, as others mentioned).

Sure, I buy things impulsively at times. But, the big picture is always front of mind and very important to us. The second those goals are not being made, then we have to step back and make a change.

No matter what, we examine our spending every month. Every month we look at the good and bad, and adjust accordingly for the following month. That said, I could tell you weekly how much I have to spend on variable expenses, how much I spent, and how much I have left for the rest of the month. The more we track our expenses, the easier it is to stay on target, for us. We use Quicken so we spend very little time tracking those dollars, but I can tell you where every penny of my money goes with a few clicks of a mouse.

[MrPolarZero]

well just think of this, imagine growing old with no savings at all... really frustrating isn't it? What I'm pointing out is that you must motivate yourself to save money so you can secure a better future.

[DebbieL]

One thing that I've always noticed is that I'm much more likely to overspend with cash which is part of why I greatly prefer credit cards. There is much more accountability with a credit card. I know that a bill will come later and need to be paid and there will be a concrete record of that spending. Cash, though, just slips away. If I'm going somewhere where I might be prone to overspend, I'll make sure to limit how much cash is in my wallet that day.

I think you are the first person I've known of that is more responsible when using plastic than cash. This is the opposite of most people (there are actually some studies on this). I personally find it harder (psychologically) to part with cold, hard cash than to pull out my plastic. I definitely spend less when I'm using cash.

I think we all "know" that a bill will come later, but for some reason it just isn't the same as parting with money right now (and I'm a very responsible, financially savvy person).