Tuesday, March 24, 2009

Managing your money in your 30's

I found this great article through a post by Escape Brooklyn. As a person who is on the tail end of their 30's I have already adopted some of the suggestions from the article. Oh how I wish I had done it sooner. But, there is nothing I can do about the past so I have to keep trucking on in the present towards my future.

Right now my and my husbands major source of financial stress is all of our debt and lack of savings. What's even more crazy, two and a half years ago we did not have any debt except a small credit card balance. Now it seems to have mushroomed.

We had heard about Dave Ramsey a few years back and read his book. We liked a lot of what he had to say but didn't exactly agree with his plan. With people like this who help advise on how to get out and stay out of debt you have to take them with a grain of chocolate. Take the suggestions you like and come up with a hybrid of your own. Most importantly, find out what works for you in your particular situation. What is workable for you.

With the amount of debt we have right now I could not even think of waiting to get it all paid off before seriously starting to save money. The hubs and I came up with what we think will be a workable plan. After all of our expenses, minimum payments and some fun money are covered we have X amount left over. We are calling that X our "bucket". In April we will put our bucket towards our debt, in May towards our savings, and keep going like that. True, it will take us a little longer to pay off debt but we will also be increasing our savings at the same time. That is just as important to us as getting the debt paid off.

In just over five years my husbands youngest will have graduated from high school and we will be in our young 40's. It's almost like a do over. We do plan to move to a part of the country that is less expensive (and warmer) and we KNOW that we will be out of consumer debt and have a significant amount of money in savings by then.

If you are in your 20's here is the link to that managing money article.


MaryDeluxe said...

Any plan is better then none! She has an interesting blog....I would never move and live in NYC it's absolutely crazy expensive to live there!

paisley penguin said...

Yeah, the greater Seattle area is bad enough. You can bet if I had a choice we would move from here. :)

change is a good thing said...

That's great! You have found a plan that works for you and that's what counts! Great job! I totally agree on wanting to move somewhere warmer! Hasn't it been the most awful winter here?! Sheesh! I'm seriously considering taking the fiance into us living down in Cal where he is instead of coming up here. Brr! I just can not seem to get warm this year!!

mrsb said...

I have the same cheaper/warmer dream. My youngest is in 4th grade, so it will be a while..

Escape Brooklyn said...

Glad you enjoyed the link! It sounds as if you've got a great plan, too.

And a warmer climate sounds very good right now! (Says the crazy person who's about to move to Minnesota...)