Christine

So if it’s anything like the sex diaries – nobody is going to want to read about budgets and penny pinching and responsible investing, they are going to want to read about SEX… I mean, spending money.

So as entertained as I am, I think the format will lend itself to stories of budgets blown and desperate measures and mistake-prone folks. Um, the trashy celebrity disaster stories of the financial world, if you will. And it will be entertaining because it will make us feel better about ourselves. Stop me if I’m wrong.

Writer's Coin

This is incredibly depressing. It’s like watching a drug addict do his/her thing: “I spend money today”

No Debt Plan

Fairly obvious she has absolutely no self control. Hate to be that guy, but when you’re writing “I know I shouldn’t have done that” “I shouldn’t go to Trader Joe’s” etc…

Beans and rice.

Rice and beans.

You’ll feel better with money in the bank.

Then again, the first step is always the hardest…

Nicole

I sympathize with the bridal stuff. I was just recently in a wedding and while I had the money to pay for everything, it wasn’t cheap. Luckily, its a very good friend!

Francis Valencheck

I track my expenses on a spreadsheet everyday and track how close I am to my bi-monthly spending budget. It really helps and I hope you try it too. I also track my cash flow for the next 3-4 paychecks and it’s helped me keep my spending in check.

Another comment too – Your fixed expenses are too high and you should work on reducing them. Should you try to get a cheaper vehicle? A $300 car payment on a $2600/month salary seems really steep. Also, why not get a roommate to reduce that rent payment?

I totally feel your pain but it’s good you admit you have to do something about it.

ericabiz

Sometimes I wonder why I don’t get along with a lot of people my own age (particularly females), and then I read these stories, and I remember why.

-Erica

Barbara Saunders

To Francis – I don’t know where this woman lives, but in San Francisco, $975 might be the rent WITH roommates! I agree she should have bought a used car.

Pritesh

I am sorry to say but, this is the worst post I have read on this site. I mean, what in the world stops this 20 something woman from earning money/doing other job besides 9-5 and tracking her money?

- She can always say NO to her friends and save money by not going out/taking cab.
- She can always work at nearby Starbucks/Dunkin Donuts/local Pizza store and make 7-10/hr. Also, she can get one time food free from the store.
- She can call to various car insurance company and try to get lower rate on her car insurance.
- And main thing she could have done is, instead of spending time on writing a money diary- she could have spent time on Excel file which she got from her friend and enter/track expenses. She could have read coupe lf of finance/money books, like ‘The Total Money Makeover’ by Dave Ramsey.
- She could have spent money on lower priced drinkware. What if it breaks or some stains leave on it. It’s expensive (I am sure, it must be more than 100 $) and I do not see any point to buy besides to impress friends..
- Or the best thing she could do is just go thru selected posts on this website and learn something and change her life instead of spending money on things and not saving enough.

According to her, the person who lent her money gives LECTURE and the person who will give money for drinks is some ’sucker’. As per the richest person in the world, Warren Buffet, try to be a nice person (in other words- respect other ppl, especially yr parents.) He has given valuable advice: |It’s so simple that it’s almost too obvious to notice. Look around at the people you like. Isn’t it a logical assumption that if you like traits in other people, then other people would like you if you developed those same traits?”

http://www.usnews.com/usnews/news/articles/061022/30buffett.htm

Good luck…

carole

It seems like personal finance stems from lifestyle; therefore, the lifestyle needs to change first. Just my opinion, because I know mine needs to change.

lonne dortch II

this is my frist time reading one of these stories. and i enjoyed it. its letting the people know what not to do!!!! EVERY BODY JUST SAVE YOUR MONEY… PLAN AND SIMPLE.. A++++++

imelda

I had a long comment written about how frustrating I found this diary, and how I feared that this series would , as Christine said, lend itself to horror stories rather than anything really instructive or encouraging. I was going to explain why I felt that Pritesh, above, was not being condescending or patronizing, and that I hoped you would have diaries with more positive stories.

But I deleted that comment and, instead, went ahead and wrote my own Money Diary. I’ll send it to you and we can see if you want to post it (it needs work). Hopefully it will act as something that–not to be conceited here, but in all honesty–can be instructive for readers, rather than confirming their worst fears.

Penny S

This might sound dumb but….
You can get lots of stuff at the dollar store/thrift shop that looks nice but isn’t durable. They have nice glassware…it just breaks if you drop it. which is no big deal since it’s only a buck. It’s great for parties and even some gifts.

mabelita

Why should she go to the trouble of using a budget when she has a safety net to fall back on in the form of Mom’s bank account. I will be a mother in a few months and this is a lesson to not give your adult children money (short term loan maybe). They will never be self reliant. She will go from taking handouts from her mother to handouts from her husband and never experienced the feeling of personal financial security. This security can be an ongoing source of true confidence instead of the facade of confidence provided by new dresses.

Kym

For one thing, I don’t think $300 car payment on a $2600 paycheck is all that bad. My car payment is $350 (yes, I bought new, and I’m glad I did) and my paycheck over the life of my loan so far has fluctuated between $1500 and $2000 (as well as about 4 months of living on an $800 unemployment check alone). Then again, my rent is only $535 (which is cheap for the area I live in, especially with no roommates). Even so, I’ve never been the sort of person who goes to bars. Drinking at someone’s home, besides being cheaper, affords you the ability to choose your company, and actually be able to have a conversation without shouting. I’ve also never been afraid to live on ramen noodles in order to afford things that matter more to me, like a high speed internet connection (couldn’t work without it), or my car (which I love).

I’ve finally landed a job that is affording me enough income to save and invest a little rather than living paycheck to paycheck, and I have to admit I’ve borrowed money from just about every member of my family in my struggle to gain independence. I have kept track of the amounts and intend to pay them all back with interest, if they will accept it. My mother is the only one who hounds me constantly to pay her back, consequently she is last on my list to pay back.

Sarah

First of all, this bride probably asked the girl several months ago to be a bridesmaid – why didn’t she start saving money then? The avg. bridesmaid probably spends roughly 500 – 1000, for the dress, parties, and wedding gift. If she had started saving 9 months ago, that would only be 50 a paycheck (at the most). She obviously has no remorse blowing $25 on one lunch and one dinner. If she had skipped those two, she would have been able to save the $50/ paycheck. Hindsight is 20/20 though. I am not saying that a bridesmaid should spend that much money, but really – all it comes down to is budgeting. And Yes, I have been the BM in 3 weddings within a month of each other before on a similar salary and managed to save that much for each wedding.

xmasy

they usually laugh….if they seriously want the money, then I will seriously ask to see some titties

Mr. Nickle

I applaud the person who wrote this diary. Obviously, they realize the way they are going is not working, and they’re looking for input on alternatives. It’s too bad that most of the people who have left comments chose to blast her. (That will teach her to open up!)

To the author:

You’d be surprised how much of a difference bringing your lunch to work can make. You don’t have to make it the night before. If you have a fridge at work, just stick some bread and lunch meat in there, and make yourself a sandwich at lunch time. You can easily cut out $200/month right there. Take your sandwich outside to a park and read a book or something. It’s a nice break in the day, and a good stress reliever.

For dinners at home, a can of soup is fast, easy, cheap, and healthy. You don’t have to eat ramen noodles.

Having a car costs alot of money. Besides the payment, there is insurance, fuel, parking, and maintenance. It sounds like, from the cab fares, that you live in a city, or might live close to where you work and/or go out for the evening. Would public transit work for you? That would save you from a huge expense.

I wouldn’t feel bad about a lack of a budget. Budgets are like diets, and most people who have them break them. However, you can do something like this, that is just as effective, by setting aside some cash for incidental expenses (like going out with friends) from each paycheck, and when the cash is gone, just stop spending.

If cash doesn’t work for you, set up a separate account for spending money from your bills, and setup direct deposit to put the amounts you need for each into each account. Then, get rid of your debit card for the account that is only for bills (you write checks for your bills, or send online payments).

Buying drinks when you go out is definitely expensive. If you’re going to keep your car, volunteer to be the designated driver for your friends. It will be much appreciated, and will probably make you quite popular. They may even buy non-alcoholic drinks or tapas for you, in return for the favor.

Finally, if you want to get ahead, set aside 10% of all you earn into a savings or retirement account. That may seem hard when you’re having a tough time making ends meet, but you’d be surprised how little you might miss it. They key is to make it automatic, though, so you won’t give yourself the chance to spend it. This is cited by many, many people as the key to getting wealthy.

Kim

Ramit, this is such a phenomenal idea. I look forward to reading these entries because they actually help give objective insight your own spending habits. When you see yourself in other people’s detrimental decision making, it really makes you rethink how you spend, buget, and manage your money. Good stuff.

sankar

It is quiet interesting to read this diary and how our expectations are same. Even if half the globe separates us financial needs and anxieties are the same.Currencies differ but not the concerns! Great blog Ramit

Rob Curie

Ramit, this series is brilliant.

I must admit, reading today’s diary was depressing. Although I have not yet had to deal with weddings and such huge expenses, I’ve been on that sinking ship and I know the feeling.

It takes more than sheer willpower to restrain your demons and keep your wallet shut, especially when loose spending has seeped into the core of our culture.

Anya, I hope you weathered the wedding all right and you’re now financially afloat.

Carmen

Anya – I think posting this blog and owning up to your situation is an incredibly brave step. You don’t need any more advice (My preface before giving you advice…)- you need encouragement and accountability. It sounds like your girlfriend that gave you the budget is a good place to start. She obviously cares enough to try to help. Maybe she can be your budget buddy. Like when you break up with a guy and need a friend that you always call/email/text every time you get the urge to call/email/text your ex. Maybe each time you feel like you are going to unnecessarily spend money, you could call her, and she can talk you out of it or help you brainstorm on a cheaper alternative. That was a HUGE help to me as I slowly worked through $30K of debt… took a long time to get in the habit… but there’s nothing better than when you’re fixed on an objective and have the strong support of loved ones. Good luck. I’m sure you can turn this around.

Paul Dykman

This is obviously fake. Is it just me? It’s like watching reading an after school special transcript on money management.

to script writer: trader joe’s is less expensive than Ralph’s.

xmasy

[I deleted this comment because I don't allow sexist nonsense on this site. Get a life, xmasy. -Ramit]

Ada

Anya: Some suggestions.

1. Increase your cash flow. You’re already trying to do this through selling things on Ebay, etc. But could you get a better job? Ask for a raise at work? You’re a good writer; maybe you could take on a freelance project now and then.
2. You really, really need an emergency savings cushion. Start a high-yield savings account with a different bank from your main bank (so you’re not tempted to access it with your ATM card, and have to wait a few days for money to transfer) and put in a small amount per month. $40, $50 — whatever, as soon as you get paid. Then set a very high bar for what constitutes an emergency. A sort-of paradox: Often, the more you accumulate, the less irresistible the impulse to spend — you’ll start to derive real pleasure and pride from having a nest egg, and you won’t need frivolous purchases to keep from feeling poor.
3. Seriously consider selling the car (if you’re above water on the car loan). You could spend $150/mo. on cabs and still come out way ahead. And if you have some equity in the car (doubtful, but who knows) you could put it in savings.
4. At the risk of triggering flames: In this circumstance, anyway, think like a dude. Meaning: don’t live like you’re subconsciously expecting some white knight to come along and get you out of your financial morass. You wouldn’t want Mr. Right to come along until you proved to yourself you could be financially secure anyway. If you started dating some guy and found his finances were like yours, admit it — you’d wonder what his deal was.

xmasy

if a woman says men are pigs…is that sexist too?

finance girl

3 things: 1) She needs new friends. 2) She needs to hunker down and live like a hermit for a month to get ahead of the bills and 3) She needs to learn to not be a financial poser; to have the courage to say ‘know what? can’t afford it. If you want to come over and go on a walk with me, great. Otherwise I need to stop spending so much $”

Margo

A few thoughts:
Nix the cable bill for a few months. A lot of TV shows are online now. I haven’t had cable in 2 years and don’t miss it too much. Most of the shows on cable just made me want to buy things, anyways, so not seeing the makeover shows and “lifestyle porn” on FoodTV, TLC, etc. has been good for my bank account! I get a periodic cable-fix when I go visit with family & friends.

Start a weekly girls’ night with 3-4 girlfriends. MIne was “trashy TV Tuesday” – we’d take turns cooking dinner for everyone and pile on the hostess’s sofa to watch our shows. It’s a great way to catch up, to force yourself to learn to cook, and to have a lot of fun! I learned how easy it is to roast a chicken, which can be bought on sale for just $2.50 and has enough meat for 4 meals plus scraps for making chicken noodle soup. I might not have tried it if I didn’t see my friend make them herself! Plus, lots of tasty foods are too much work for just one person, but work well for a group, e.g. tacos, enchiladas, etc.

You can do dinner for 4, with a bit of booze, for under $20. That’s $5 a week, versus $10-20 every week if you met out at a bar for cocktails.

The Wallet : Loose Change: 10/14/08

[...] Personal Finance: -Debt-relief firms don’t provide any relief at all! Blargh. [WSJ] -Are credit cards at a tipping point? There’s more borrowing and less paying. [RedTapeChronicles] -I Will Teach You To Be Rich is doing a regular feature called “The Money Diaries,” inspired by NY Mag’s sex diaries. Great idea! (Wish we’d thought of it!) The second installment deals with someone who doesn’t make enough to cover her spending habit. [IWillTeachYouToBeRich] [...]

unifiedwebs.com » Blog Archive » How To Control Lifestyle Inflation And Survive The Recession

[...] your cost of living stable, you spend it instead.  While I’m not saying you should never spend your money, keeping your lifestyle inflation under control will benefit you and your finances significantly in [...]

Misty

My heart goes out to this poster because she reminds me of my older sister. My sister is know filing for bankruptcy because she has lived beyond her means since she graduated college. My parents even bailed her out of the $9,000 credit card debt she accumulated in college. But she still managed to rack it all back up and THEN SOME -at least $30,000 in credit card debt and upside down about $20,000 on a car payment…..on a teacher’s salary. Anya I really hope that you are able to learn from this experience and turn your finances around, it will make you feel better when you have that control.