learn about money & achieve greater financial independence

I need to save more. I’m doing pretty well—I’m not really in debt, I make my minimum credit card payments every month, and only have one card with a purposely low limit. I try not to buy stuff I don’t need (or at least that I can’t afford), and even have incorporated some frugality hacks into my life. However, I’m still not saving anything. I realize that I just spend what I have. Even though I’m not spending more than I have, it still isn’t doing me much good. I’ve reach saturation—I have all/ nearly all of the things I need to buy, and the rest I can probably go without. Now, I need to save rather than accessorize.

I’ve done pretty well making a budget and recognizing what I spend. I avoid using my credit card, now, and keep it paid off (although I’ve always at least made the minimum payment). My monthly budget will change, obviously, when I move to my apartment in PA.

I need to make sure I have 3-6 months of expenses saved. Then, I need to contribute what I can to a retirement fund—10% of my income is recommended, rather than a fixed yearly amount. Not sure how to find or choose this fund. Also not sure when I’ll need the money from it and what I can really contribute. In five years or so, it’s likely I’ll be earning far more than I will in grad school—I’m not sure how great of a difference it would make to start my fund then rather than right away.

I should also put money into stocks, bonds, and savings. I’m not sure whether I should try just one or all of these (or any at all, for that matter), or what would make sense with regard to my grad student income. My parents were thinking of buying me a bond for my birthday—I suppose I could invest further into that (can I?) although I’m not sure how often or how much.

I’m also not sure about short term savings. I’d like to take a trip over winter break or next summer. I’m not sure whether I should have a separate savings account for these expenses—I’ll probably just contribute to my regular savings account with this plan in mind.

Finally, I’m not sure whether I should take out a loan or not… I have just enough to furnish my apartment and pay the first month’s rent, and survive on top of that. I might be in sort of a paycheck-to-paycheck situation after that, though—although I won’t be spending my entire paycheck, and I have no outstanding debts.

Still have some reading to do regarding personal finance.

Once I get to school, buy some items that will last for a while (furniture, dishes, etc.) Sell the junk I have now that I don’t want to take with me or store. Put most of what’s left over into various savings: 10% into very long-term (like a retirement fund or something close to, then keep adding 10% of my monthly after that), invest some (I might wait until Christmas on this one… I think somebody’s starting a fund for me), and put as much as I can manage into short term savings, for travel next summer or over winter break.

In the meantime, try to hang onto what I have, and see if I can pick up a little more from small gigs (event staff, tutoring, etc.) and selling things I don’t need. Otherwise, minimize spending.

• get and understand my credit report
• when I switch banks, get a better credit card, perhaps one with frequent flier miles
• get my car in my own name
• find out whether my school health insurance plan is the best/ most affordable one available to me
• figure out whether I should get a loan, then how to get one with minimal interest
• make a budget, decide what to invest from what I have saved now
• switch banks (keep credit union at home, though)

I’d like my car totally in my control, and my health insurance (through the school’s program) including medical and dental expenses, and including any prescriptions. I’ll pay for my phone, internet, and all rent, utilities and all travel expenses. I’ll pay any costs associated with my education, and for all incidentals, all of my food, furniture, any belongings. I will learn about investing and saving, myself, and take out my own student loans in my own name. I will buy myself the things I want and need. I realize how angry it’s made me to be under the financial control of others, and how damaging it is to my spirit to feel this burden on my independence. I can’t wait to live on my own again, to stop being sucked into this excessively youthful and submissive role here at home, not to be victim to guilt tripping or forced to negotiate. I hate walking this line. I feel chained to the parts of my childhood and adolescence I most want to lose, and after that I can build happy, healthy adult relationships on my own terms.