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30K Saturday: End of Week 7

It seems as though I am shifting further and further away from the stringent savings that I initially had in the beginning of this campaign. Looking back at week 1 and week 2 of 30K Saturday, I spent almost nothing on things that I did not need. However, this week, I spent almost $100 on eating out alone. Granted, there are some things going on in my life that has kind of “forced” me to dine out alone for the past week, but nothing said that I had to dine out at Ruby Tuesday, Popeye’s, and the Chinese Kitchen.

I think what’s going on is two fold. One, it can be the Upgrade Cycle affecting my spending habits.

As I explained in my definition of the Upgrade Cycle, as we get pay raises, we simple find “things” to substitute this income such as auto loans, mortgages, vacations, or more meals eaten out.  Although I haven’t received in increase in pay, it seems as though the comforting fact of having $5000  saved to this point has led me to believe that I can slow down on savings. Thus, I’m substituting my increase in income ($5000 in savings) with replaceable things.

Second, the goal to save 30K seems far off, and because of this long path there are multiple off ramps that I’m going to continually be tempted to take.  Additionally, every once in a while unexpected road blocks occur, which are very discouraging and sends me chasing  detours–I’ve had several this week.

So earlier this week, I elected to end 30K Saturday and simply place the money in retirement and college savings accounts instead. But thanks to a little bit of encourage from my buddy, I steered back on the 30K path again.  My buddy reminded me how much the 30K would save me in the long run after using it for its purpose- refinancing my home from a 30 to a 15 yr term . He also gave me a swift mental kick of encouragement by reminding me that once this goal is reached, I wouldn’t have worry about the house again and could easily start saving for retirement again even if it takes a year.  “Just do it, you have 30 years for the current money in your retirement account to compound even if you don’t add another dime, so there should be no real rush to max out retirement t if it’s going to throw off your plans to refinance”, exclaimed Anree.

So thanks to him, I’m still driving the 30K path. But the most important lesson learned is that even I can use an inspiring and motivational kick sometimes. 🙂

Here are the stats for the week:

Temptations that did not materialize and their associated potential costs:

  1. Ending 30K Saturday: $200,000 in mortgage interest if I keep my 30yr term.

Total spending on temptations if I would have gave in to them: $200,000+
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Actual spending on needs:

  1. Gas: $28.23
  2. Groceries: $40.00

Total spending on needs: ($68.23)

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Actual spending on things NOT needed:

  1. Dining out: $41.77
  2. Lego’s Kid fest tickets: $30.00
  3. Going out to the movies: $3.00 (To see Social Networking; Great Movie for us nerd types)
  4. Shifting to my own web hosting: $7.16

Total spending on things NOT needed: ($81.93)

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Total deposited towards $30K Saturday: $1100.00

Total spent during the week:  ($150.16)

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