Wise Financial Decisions In College | I've Paid For This Twice Already... http://www.paidtwice.com/2008/05/01/wise-financial-decisions-in-college/#comment-24395 Amy P Thu, 01 May 2008 20:50:10 +0000 http://www.paidtwice.com/2008/05/01/wise-financial-decisions-in-college/#comment-24395 My family had very restricted means while I was growing up, so when I went to college, the ways of screwing up didn't really even occur to me. I was thrilled to pieces to be able to buy an occasional paperback book or a chocolate muffin. I had three years of full-ride support, and wound up with just under $6k in student loans. I lived in the dorm (hence no need for furnishings) and mainly ate from my meal plan at the cafeteria. I lived on the cash I had and only got a credit card pretty late in my school career, just to be able to buy a pair of boots from a catalog for my study abroad trip. It was immediately paid off. Later, as a Peace Corps volunteer, I had $400 a month to live on (a princely sum), and I continued the same minimal consumption pattern, and budgeted very carefully. It wasn't that I was particularly prudent, it was just that I had the money I had, and no more. As a young married back in the US, I really went hog wild. I was very excited about furnishing our apartments (IKEA) and getting all sorts of neat kitchen stuff, and I could spend $100 a week just on books. That was OK up until we moved to a high-cost area (rent 50% of take-home), I lost my job, and we had a baby (and then another one). We never went crazy into debt, but $500 a month over-budget adds up over time, and I developed an expensive love affair with the Lands End catalog and Gap Kids. Our budgeting method (when we used it) was ineffective for dealing with our situation, and our income was marginal for the area. Fast forward six years. I've discovered Dave Ramsey, we are living in a lower cost area and my husband has an excellent income, but we have a lot of big fixed upper-middle class expenses (Texas summer AC bill, daughter's private school, gas, internet, cell phones, car payments, etc.). We could cut back a lot more, but we've lived on a budget since October, we've paid off my student loan, we've paid off our old credit card, and we're on track to pay off our car by Christmas, and then start saving for our first house. Our May budget feels lavish and has lots of extras in it (an anniversary dinner, movie with the kids, savings for travel, etc.), but we're paying a double car payment on our final debt. If I call in to Dave Ramsey, I bet he'll wonder what took us so long on our income, but our quality of life is very good, and we've got a plan, and the plan is working. My family had very restricted means while I was growing up, so when I went to college, the ways of screwing up didn’t really even occur to me. I was thrilled to pieces to be able to buy an occasional paperback book or a chocolate muffin. I had three years of full-ride support, and wound up with just under $6k in student loans. I lived in the dorm (hence no need for furnishings) and mainly ate from my meal plan at the cafeteria. I lived on the cash I had and only got a credit card pretty late in my school career, just to be able to buy a pair of boots from a catalog for my study abroad trip. It was immediately paid off. Later, as a Peace Corps volunteer, I had $400 a month to live on (a princely sum), and I continued the same minimal consumption pattern, and budgeted very carefully. It wasn’t that I was particularly prudent, it was just that I had the money I had, and no more.

As a young married back in the US, I really went hog wild. I was very excited about furnishing our apartments (IKEA) and getting all sorts of neat kitchen stuff, and I could spend $100 a week just on books. That was OK up until we moved to a high-cost area (rent 50% of take-home), I lost my job, and we had a baby (and then another one). We never went crazy into debt, but $500 a month over-budget adds up over time, and I developed an expensive love affair with the Lands End catalog and Gap Kids. Our budgeting method (when we used it) was ineffective for dealing with our situation, and our income was marginal for the area. Fast forward six years. I’ve discovered Dave Ramsey, we are living in a lower cost area and my husband has an excellent income, but we have a lot of big fixed upper-middle class expenses (Texas summer AC bill, daughter’s private school, gas, internet, cell phones, car payments, etc.). We could cut back a lot more, but we’ve lived on a budget since October, we’ve paid off my student loan, we’ve paid off our old credit card, and we’re on track to pay off our car by Christmas, and then start saving for our first house. Our May budget feels lavish and has lots of extras in it (an anniversary dinner, movie with the kids, savings for travel, etc.), but we’re paying a double car payment on our final debt. If I call in to Dave Ramsey, I bet he’ll wonder what took us so long on our income, but our quality of life is very good, and we’ve got a plan, and the plan is working.

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