Holly Hoffman

Man, where do you get $50 haircuts?? I never walk out with less than $125. But it’s my one splurge & I only do it every 10 weeks or so.

The thing that sparked me the most in this was “…it is a very strange dynamic to finally realize that your parents don’t have much personal finance skills.” I can totally relate to that. My mom declared bankruptcy when I was in my junior year of college. My dad has never had his own checking acct. Nobody educated me about the student loans I was taking out, and nobody gave me a credit card to help me start building credit history.

I didn’t realize how little my parents knew until I took the initiative to educate myself, finally at the age of 26 when NO ONE would give me a credit card because my (very brief) history was negative. I realized all the rich kids I went to college with, their parents weren’t babying them by giving them a credit card & paying it off for them – they were helping them build a good credit history before sending them off into the world.

topseekrit

I definitely sympathize with the writer especially since I’m in the DC Metro area and living check to check as well. I do think she’s just a tad bit delusional. She’s fighting with her sis and talking about her parents and their bad relationship with money. Funny enough, the apple don’t fall too far from the tree. I think and hope the diary helped her to realize where she can improve.

not a cheerleader

You seem to have two issues here
a) spending money you should be saving
b) not making enough to save since you need to subsist.

I advise cutting back even more, such as getting rid of the martial arts class and maybe trying other exercise options that are free. Also look for a second job, perhaps. Then you can afford a $5 glass of wine when a few days before, you only had $18 in your bank acct.

There is a lot of entitlement, poor money management, and the social pressure to spend like you’re a millionaire going around. The trick is to be honest to yourself and to them. Is their judgment all so hurtful when you really shouldn’t be spending that money? What kind of people are they to judge, anyhow, sleepless due to their own credit card bills and loans.. living beyond their means.

Obviously, if I read this blog, I’m not saying you should live like a monk and not indulge yourself occasionally. It’d drive you insane, for one. What I am saying is that you seem to have a lot of financial stress, some of induced by observed society pressure, and a finance laden week. Be honest and true to yourself, be honest to your friends. Life may be less fun that way but you’ll be able to sleep at night.

JB

Interesting to get a glimpse into someone’s money habits. Especially since I work at a non-profit as well.

I know everyone has their splurges but after reading about how tight money is for this person my eyes glazed over after reading the words ‘Whole Foods’ and ‘50 dollar haircut’. Not a grocery store one should frequent who has money woes. Also, 50 dollars is a pricey haircut for someone who is worried about buying groceries. C’mon now.

I’m not sure what the income ceilings are but I also wonder if she could have qualified for fee-waivers for med school. Also, if the student loans are federals ones and you aren’t under it already, I would check out the ‘graduated payment’ plan. Payments are lower now and gradually increase since you will be making more money in the future. That might free up some money for you now. You also qualify for the student loan interest deduction if your MAGI is less than $65,000.

Occasionaly I deal with similar conflicts over student loan payments, friends having more discretionary income, etc. I think that’s ‘normal’. It does sound like she’s trying, and at 23 she’s got time to figure it out. A budget is a good next step, so she can see where her money is going. Good luck!

Pratik Stephen

This sooo reminds me of my sister!

She’s a student in Germany, so she gets “pocket money” from which she needs to pay rent, fees, and manage all her wining, dining and traveling across Europe.

And she’s always “paycheck to paycheck”…

Her main issue is she loves buying little gifts for people, and for herself… and enjoys the little “wines”, “coffees” and international calls a bit more than she can afford.
But her rationalization is that that is what money is meant for… to spend on such stuff.

After more than a few financial emergencies, she’s finally learning lately…(I hope!)
: )

Good idea for a series this…!

Jenny

I think she should read Dave Ramsey’s Total Money Makeover to get started on how she thinks about her money. Her behavior needs to be modified if she wants to get on top of her finances, and not get nickeled and dimed by all the extraneous expenditures.

Ryan

I can sympathize with being in a tough financial situation, as most of us can, but I found it quite ironic that she mentioned several times how poor her parents and sister is with money and yet… she has the same problems. Really has little room to worry about others.

I also noticed that quite often she left things behind, forgot something, forgot to do something… she needs to clear her head and stop worrying about things, make lists, and organize her life. A little personal organization will go a long way.

Spending $25 on dinner when you don’t have groceries in your cabinet for the rest of the week is not a good start…

Writer's Coin

The interesting part of this post is the lack of restraint. She mentions it over and over again and it’s safe to assume this happens to her consistently and yet she still can’t help herself. This is when you realize that money attitudes and issues have a very serious mental side to them. If you can’t change your psychology towards money then you better have incredible self discipline if you want to make some changes. Otherwise you’re toast.

serpah

I love the idea of the Money Diaries. Keep going! I would be happy to contribute too, especially after I move to china. It would be interesting to see how different things are there in comparison to the Money Diaries of North America.

I completely understand the idea of entitlement, wanting to appear rich and otherwise spending just to spend. I have been caught in that, and I still find myself getting caught in it from time to time. But we all know where that leads anyways.

I have noticed that my lack of spending and my lack of excess weight correlates nicely (an observation that has already been noted), and I have some ideas on how to cut back.

I love to eat out and I know this is something I will continue to do despite the fact that I know it costs more than eating in. I suggest ordering things with the idea of eating only half of what you have been served. This way, a $25 lunch turns into two $12.50 lunches, and you don’t have to worry about taking the lunch to work in the morning. Just keep it in the fridge at work.

Also, I find that shopping for groceries at Chinese or other “ethnic” grocery stores (particularly Asian ones) provides a greater selection of interesting food choices while keeping prices low. For example, a pomelo (delicious ancestor of a grapefruit) is something like $2-$3 at a Chinese grocer, and the same fruit is $6-$8 at Whole Foods. Personally, I find that organic and health food stores will charge premiums for “exotic” products that you can easily find for a third the cost in any “ethnic” grocery store.

Emilie

Been there, done that. Working a 2nd job isn’t realistic in this situation for more than a few months — you work twice as hard with half the resources at an NPO. Burn out rates are sky high. This kiddo needs a roommate to share living expenses with STAT. It’s the only choice that’ll give her some real savings to work with.

Accepting parental help or using credit isn’t shameful in this situation — it’s smart. It’s all in how you manage it until the compensation picture improves. And it will.

Maureen

I live in the DC metro area as well and I agree with Kam. Moving to the Suburbs might be a good idea for you. I personally live in Bethesda, MD but rent is still cheaper than it would be if I lived in the city…
I work fulltime and go to school fulltime and it sucks big time but life in the DC area is so expensive, I can’t take any more student loans to cover my living expenses. Which is something to consider when going to med school.
Try to choose a school in an area that is more affordable so as to keep your student loans low.
An ex-collegue got accepted on a full ride to a law school in NYC but he didn’t take it because it would cost him around $68,000 a year in living expenses just go to there…so he opted for a school with a partial scholarship but in a less expensive area…

Your BuDi

Well, I don’t know what to say. Her is an letter I wrote to someone asking me for advice.

Hey BuDi (buddy):

Let’s just be frank. The economy is messed up. REALLY MESSED UP!!!! Of the 5 biggest financial companies in America in the last century plus, 3 have been drastically changed. One filed for bankruptcy, one was sold and the other was taken over by the government. I don’t know about you but this is a very serious problem. Have you checked the news lately? Many companies are laying off and outsourcing work overseas to workers that will work for as little as $5 a day.

What can you do about it? Simple, invest in your self and your business. It might sound simple and like a no-brainer but when it comes to finances and people’s livelihoods people rarely lean on themselves to get them out of it. If you were in a fight with someone, wouldn’t you rely on yourself to get you out of it? If you had to get something urgently done, would you not depend on yourself to get it done? If you mom, dad, child, brother need help, I am positive you would do whatever it took to help them out.

So in these extremely difficult times in the US financial arena, why not count on yourself to help yourself get out of it, trust yourself to get it done, and do whatever it takes to help yourself out. INVEST IN YOURSELF!! Financial experts are saying your bank deposits might not be totally safe. Instead of counting on an unstable economy, unstable job, unstable banking system, INVEST IN YOURSELF.

What are you good at doing? Have you been putting off starting a business? Do it. There is no better time to start a business. In these slow times for the economy, build the foundation of the business, and build your base of customers. Everything works in cycles. When the economy comes back to the good side of things and everyone is spending money, you don’t want to be left out in the cold. Everyone is tired of the corporate conglomerates that are ruling the country and failing its supporters.

Everyone is looking for an alternative. Now, is the perfect time for you to get out there and live your dreams, fulfill your destiny, be who you want to be. Start your business now, while things are slow and you are able to get in the game. The corporate conglomerates have messed up and slowed done enough to let YOU in the game. Get in the game, start your business, invest in yourself NOW and watch the benefits of your labor begin to come in and make you financially stable, free, and independent.

Together BuDi (buddy), we can help each other succeed. I look forward to helping each other reach our goals. If you need a BuDi (buddy) for your business, we’ll be your BuDi (buddy). Your BuDi (buddy) in business.

BuDi

Chris H.

This is definately a neat idea. Living in the DC metro area as well I agree with moving to the ‘burbs, but Arlington and Bethesda are still expensive. If you really want to save some money move to P.G. Laurel and move in with people. As my cheap uncle says: “Sometimes you need to eat crow before the steak is served.” – Live cheap and rough now to save for a little further up the line.

BC

She should definitely get a second job – waiting tables, whatever. Last fall I worked full time at a non-profit in DC, then 20+ hours at a restaurant Friday night through Sunday.

It sucked yes, but when you need money it’s amazing how you can force yourself to tough it out. Heck, some weekends I would make more money waiting tables than at my full time job. I wouldn’t recommend doing it for long – I could only handle it for 3 months – but it is a great way to save a ton of extra money (or pay off debt), and also realize just how lucky you are that you don’t have to make a career out of waiting tables.

Manda B

I agree with Emilie. If you’re serious about your nonprofit job, you need to conserve your energy in your off-hours so that you are able to perform well at work. If you’re working 18 hours a day, something is bound to give. And you Don’t want that thing to be sleeping through your alarm at your real job with the real supervisor and the real chance for advancement.

Of course, different people have different thresholds for work and stress, but it is much more costly to your health and career to work yourself sick or crazy. Burnout is very real, and your agency needs you. Focus on cutting expenditures and maximizing the income you do have.