It hit me today, like it does everyday, living in Southern California is just plain expensive. Being a student does not help the situation either, nor does having a fiance and a dauther, but then again whose keeping score right? I was reading an article on MSN.com about how the common working man's wages, mostly the increases, have been falling steadily behind the rise of inflation since 1970. That means unless you are a well-to-do middle or upper-middle class person (hopefully I will be there once I graduate) your annual raises are pretty much gone when you factor in the incremental increases cost in healthcare, dental care, automotive insurance, gasoline prices (which in turn raise the price of common commodities that we need to live like grain, corn, meats, and produce), increased cost for goods and services, the list goes on. So when you get that fifty cent raise, it seems nice at first, but in one or two years when the cost of healthcare rises again, or gasoline, or anything, that raise is sucked up again.
Am I just ranting and raving, attempting to depress and remove hope from the poor or working class? Of course not. This whole idea is the reason I went back to school in the first place. I was running out at the end of my rope for a while. Got a credit card to use for "emergencies" but with my living expenses exceeding my income, the emergencies occured everytime the rent was due. When I asked my father for help and moved back in while I attended school, I re-evaluated my budget and saw where I could make some cuts, at the sacrifice of my lifestyle and comfort (as meager as both of those things were already, they were about to get worse). here is what I did and what you should read and learn from if you are in a similar situation:
1) Consolidated debt and got lower interest rate. Destroyed credit cards so I wont use them anymore. Closed the accounts (borrowed money to zero the amount) and make the payments everymonth to the borrowed amount. If you cant do this, pay off the lowest total first, and make minumums on the others. Call the companies of the cards and ask to lower your rate and let them know you will not be making purchases until the rate is lowered substantially. Make minimums on the others AT LEAST, but the maximum you can afford on the smallest debt. When the smallest is paid off, take ALL of that money and put it towards the next highest, repeat until credit card and other debt is gone.
2) Stop eating out. Go to the grocery store and buy all the store brand crap you need. Name brand means more money, PERIOD. Believe it or not, organic and whole food stores have many of the processed products (ie peanut butter) and produce (fruits and vegies) much cheaper than regular supermarkets.
3) make a budget and stick to it. I only spend money on "wants" and "food" with cash. I take out a fixed amount EVERY paycheck in cash and that is my living money until the next payday.
4) Pay yourself first. Without credit cards to bail you out (and also trap you when temptation is too great) you need emergency money. Every payday, have money automatically deducted from your checking and put into a savings. If you have direct deposit your company can do this just as easily.
5) once you have some breathing room, stay disciplined, but be realistic. YOu cant live under a rock forever and never go out. If you are single, be smart when going to bars and restaraunts. If you have a significant other, it should be easier, they should understand that you are in a crunch and be willing to help, maybe not financially, but emotionally, and help you sacrifice.
If you cant move in with parents, move in with a friend, get a roommate, but be smart and attack debt like an enemy.
I have and I am starting to make headway, although now school is another debt, but I will have all others paid off before I have to pay that one. and I am paying it a little as a i go.
Caesar
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