Finance Friday

Friday is the day I pay bills for the week.  Oh, joy.  We are not in the clear yet, that's for sure. 

Our plan is simple: save and pay down debt.  We would like to develop a nest egg as well as have more money for a down payment on a home.  Meanwhile, I will be paying off one bill at a time. 

There are several schools of thought when it comes to managing finances.  1) Pay off the smallest bill first, then take whatever $ you were putting towards the old bill and add it to whatever you are paying towards your next-smallest bill.  This provides results more quickly and motivates you to keep going.  Or you could 2) Pay off the bill with the highest interest rate first.  That way less of your money will be going towards interest.

We're working on a combo of Choices #1 and #2 - my smallest bill actually has the highest interest.  Last week I put a substantial amount towards it, and that felt really good.  However, this week I barely managed to pay a couple bills, save a little, and have spending money for the week, too.  That's somewhat discouraging, but I just have to keep my eye on the prize.

Bill-Paying Day inevitably leads to the question: Would I have done things differently?  Oh, yes!  And: Oh, no!  I would have saved more and spent less when I was living with my parents during and after college.  I went to community college for the first two years, a local university after that, all while working several jobs.  I remember my former boss would say, "Save now, while you're young.  Open a Roth IRA and contribute whatever you can towards it.  Future You will thank Younger You." 

'Yeah, yeah, yeah,' Younger Me thought.  Did I?  What do you think?

But I loved our beautiful wedding that we couldn't afford.  And yes, people still remember it.  And I would never have NOT gone to Ireland with my mother, or Scotland with my friends, or any other trip I took when I was living in Europe during grad school.  Those experiences made me who I am, and the memories feed me in my hungrier moments.

If I had to do it all over again, I would have been smarter about how I managed my money.  Less drinks at the bar in my twenties would have equaled larger payments towards credit cards.  Debt isn't necessarily bad, but letting it overcome you is.  And there's no excuse for not saving.

We started a savings account for Emmie already.  Every week a small amount gets debited from our account and into hers automatically.  As soon as she is old enough to understand what money is, I will begin teaching her how to handle it wisely.  I grew up in a time when America and our economy seemed golden.  Even though my father taught me about finances, I don't think I ever really valued it.  I will do my best to make sure Emmie understands the importance of being careful with her money. 

Every Friday, I tell myself that I am fixing our futures.  So that we can all have new amazing experiences someday.