Cents and Sensibility
Posted on June 13, 2005 11 Comments
Last week I celebrated my three-year anniversary at work (I’ve actually been there four years – one as an intern, but the company doesn’t count that as “real work”). Guess what I did with my modest bonus…
New shoes?
A big dinner?
Night on the town?
Concert tickets?
No. I marched right over to Washington Mutual and put the check into my savings account. Although this action was largely symbolic, the effect surprised me. I felt satisfied.
You see, I’m a recovering spend-a-holic. I’ve only recently opened a traditional savings account and 401K in November 2004, about the same time I started this blog. I’m still learning about different investment opportunities – I actually feel like I just opened a door to a whole new world. My experiences learning about debt, retirement and savings have opened my eyes and caused me to change for the better.
But if given the excess, I would still choose to spend and splurge – until now, it seems.
I’ve never felt more confident in myself as when I handed over that bonus to the bank cashier. No buyers’ remorse, no wondering if I really could afford the dress, no guilt-in-a-bag, no credit card shock. Just a smile. A smile that represented a deep sense of accomplishment and self-worth.
This month, I hit two more financial milestones. I increased my 401K savings to four percent of each pay check, while increasing my monthly savings to $200 per month. As I type, I exhale.
Making decisions to cut back on spending, to not buy the fabulous new furniture or extravagant new clothing, not to take a big summer trip right now – those are tough decisions that require suppression of spontaneous behavior, rationalization and a long, hard gut-check each time.
But the realization that I can depend on myself, that I will provide for my own future, that my life is truly in my own hands…that realization has finally come, and easier than I could have imagined. It just took some effort on my part.
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June 13th, 2005 @ 1:52 am
Pretty neat, ain’t it?
The spontaneous buying behavior is still difficult for me, too. But I’m getting better at fending it off. I simply keep reminding myself that the current goal is what’s imporant — get $10k into my emergency fund.
I think about all the effort it’s taken to get here, and I wonder why in the world I’d want to take a step backward with a big-ticket, non-necessity purchase.
Lately, that’s done the trick.
June 13th, 2005 @ 7:53 am
It is to be feltm than described. The feeling, the satisfaction caused the confident smile in you. continue your effots to achieve the goal.
Incidentlly, i am adding your blog in my links.
All the best.
June 13th, 2005 @ 12:14 pm
I am happy you are feeling that good from bringing the bonus to the bank.
For me, all of my bonuses and commissions at work are considered investment money from the time I get them. They go directly to Ameritrade (the broker).
I buy the things I need and want from what is left out of my salary (after you take out taxes, 401k, and a Stock Purchase money that I automatically take out of my check).
It seems you are miles ahead of the average person. Keep it up!
Money and Investing
June 13th, 2005 @ 1:52 pm
Congratulations! It is a huge step for former spendaholics to stop the buying pattern and begin to save. It is a big deal and you are rightfully proud of yourself!
June 13th, 2005 @ 3:53 pm
Hello,
I was impressed by your “smile” when you deposited your bonus cheque. This made me to refer the same in my blog.
Indianrupees.blogspot.com
I have also added your blog in my list of blogs. Hope you would not mind.
June 13th, 2005 @ 4:06 pm
Sounds like you’re making good progress! Everyone once in a while I splurge on a gift for myself (a camcorder in May, for instance) and I susually regret it afterwards…
June 14th, 2005 @ 1:54 am
I applaud your resolve. I usually use the excuse, “next time” or “just one more purchase” and this gets me a guitar that I purchased at a New Year’s blowout sale which is now a pretty wall decoration.(Can’t afford lessons at the moment)…I have been reading your blog since Jan.2005,saw it reviewed in a newspaper and have been enjoying your financial adventures ever since.
June 14th, 2005 @ 3:35 am
Great self-discipline!
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