death and taxes

After I graduated college and started making some money, I set up a mint.com account to track my finances and budget.  I loved all the detailed graphics and analysis tools that I had at my disposal and also the feeling of "adult-ness" that came from worrying about grown-up things like loan repayments and 401(k) contributions.

Well, that feeling only lasted about 6 months.  Who knew that budgets were so hard to keep?  At the time, my version of sticking to a budget involved just increasing the amount of money allocated toward a certain category if I overspent.  Spend $100 more than my monthly allowance for clothing in May? No worries! I can just raise June's amount by that amount (without lowering anything else) and that problem takes care of itself.  I literally saw no problem in doing this.  The numbers were just arbitrary anyway, right?

Needless to say, soon I stopped using the site altogether.  I thought to myself, "As long I have more money coming in than going out each month, I'm fine." No need to use an overcomplicated website and analyze fancy charts all day.  I just had to check my bank account balance every once in awhile, make sure the little number was black instead of red, and I'd be set.

I started to grow concerned however, when I realized that the little number never went much higher than the amount on my bi-weekly pay stub before dropping to zero at the end of the month.  I was living paycheck to paycheck and I had no idea where the money was going. I'm pretty sure that this isn't supposed to happen to a 20-something single guy who lives with his parents.

So, I've come to the hard realization that "winging it" is never a good approach to personal finance, no matter how burdensome or daunting it may be.  I logged into my mint account for the first time in ages a few months ago and am now learning how to actually stick to a budget instead of whatever I was doing before.  I know it's working because I've actually said "No" to myself a couple times since committing myself to it.

Worthwhile financial goals for the immediate future:

1. Increase 401(k) contributions 
2. Add to my rainy day/emergency fund
3. Pay off all student loan/car debt (almost there!)
4. Save for a house

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On a semi-related note, I found myself growing antsy waiting for my W-2 form in the mail so I could do my taxes this year.  This was the first year I had to shell out some cash to do it online because I made just over the arbitrary limit (like tens of dollars. grrr.) that would have allowed me to do it for free on H&R Block's website.  I ended up switching to Turbo Tax and paying probably way too much for the convenience when I could have just filled out a paper form for free.  But regardless, as of last night, my taxes have been filed and I have a tidy sum coming back to me in a few weeks.  Hooray for money.  Hooray for getting excited about old people things.