Tuesday, May 15, 2012

Feeling Broke

I'm beginning to feel broke - when I first started working full-time last year and got those nice paychecks it was wonderful. I was able to put $1,000 away a month, pay $500 toward my student loan, pay my credit card (off) each month, and have a few cents left over. As time has gone on my spending has increased with a little freedom. I am suddenly putting about $500 away a month, but spending a couple hundred on our weekend trips, paying $500 toward my student loan, and still paying my credit card off each month. It's a good tradeoff, but it's leaving me feeling broke.

Maybe it is also how my credit card comes due? I usually pay it off the first of the month just because I can easily remember. I also pay my student loan the first of the month and set the money aside. My card and student loan aren't due until the middle of the month. I'm thinking there's no reason why I can't just do that in the middle of the month and feel like I have money through the rest of the month...

1 comment:

fan of casey said...

Mike: Managing short term cash flow is more about timing than anything else, it doesn't save you much money and the paltry interest of today's checking and money market accounts makes the lost opportunity cost of investing the excess cash is nearly worthless. Delaying payments can give you the sense that you have more cash available, but it really is just an illusion.

If you have electronic bill pay, take advantage of that and time your payments closer to the due date. Most credit cards allow you to pay electronically and even have automatic bill pay options. Just set it to pay 2 days before the due date to make sure it credits the payment on time.

Not sure what your options are on student loan -- you can check to see what's available.

You have learned an easy lesson here, when you make more money you tend to spend more. Try living below your means for 3-6 months to build up an emergency fund so you have backup -- that way you know you have access to some funds if something unexpected pops up.