Monday, November 27, 2006

Thorny Issues

Yesterday, B and I had a silly fight over money. Well .. it started with me proposing to go for a play this week. We had initially budgeted for one play (similar expense) a month and this month, have already gone for something. So B felt we should exercise restraint. Then it degenerated into pointing each others extravagances (which collectively adds up to quite a bit). Once silly fight was done with every stupid expense pointed out and ripped to shreds, we started seriously discussing finances (something we rarely do).

At the end of our respective 5 years each of working we have shockingly low savings. Well .. its not shockingly low.. its just zero. Its not like we've wasted money .. but there's always a good reason - the wedding, studying, holidays .. it all adds up. And moving to London has not helped. We just figured that our estimated expense for next year is marginally more than the earning. We have a brilliant game plan for saving though.. once I start working (whenever that f-i-n-a-l-l-y happens) we will save my salary.. so we atleast have some savings when we retire. However, I see a lot of discipline and arguments in the future, if we are to implement this plan. And for now, we have the unpleasant task of prioritizing expenses .. since doesn't look like these happy-go-lucky times can be continued for much longer.

All this looks worse in perspective of the financial planning of some friends. I have friends who are well into house mortgages and stuff. .and unless my degree can sell for an equivalent amount.. at the moment the returns are not looking too great. So tough times ahead and thorny issues to be dealt with - not much fun.

12 comments:

Akkare said...

Gawd! Sounds soooooo familiar. The one play a month, one restaurant a week budget - the silly fights because you are upset you cant do more...been there done that.

Nee said...

Yep - another couple here doing the budgeting - and usually losing track/lacking willpower to stick to it. Anyway, I remember you mentioned that your stint back in education didn't come cheap - and education is more of an investment than an expense, isn't it? :-) Your friends have mortgages, but you have your degree which I am sure is worth a lot more!

Beks said...

am so bad at budgeting. I'm bulimic when it comes to money. I can go ages without buying anything and then the next thing you know I'm binging away:D Drives my poor husband crazy.

John said...

Try MSN Money 2007. It's a great tool when it comes to budgeting and planning, and it also shows you the areas where one tends to spend the most.

Ekta said...

oh boy looks like finance seems to be one of the favourite topics of argument between the husband and wife..ditto here!

30in2005 said...

I'm so glad you believe working will solve all the problems of saving!!! Once I started working I thought I would save as well. Instead I wanted to go out with friends/ colleagues, for more drinks, for more dinners, to shop a whole load more, for plays/ musicals/ exhibition, for endless books, endless foodie type things -and so now we both earn and still don't really save!!!! So all the best with that plan - but life is so much fun, isn't it!!

Shionge said...

Yes we've been through this and now we are quite healthy in our savings. Hope you'll sort that out soon Pea

John said...

Errrrr.. why do I seem to be the odd one out here.. :S

Pea said...

[Akkare] So does it get better after this?

[Nee] Like I said .. degree is not showing very high returns at the moment. If it works out .. then ofcourse, will be smiling all the way to the bank.

[Beks] Sounds familiar. More than phases .. both of us spend of certain things. So we'll be doing fine for the year.. then wham ..someone needs a digital SLR .. and there go the savings.

[John] I assure you ..tools are the least of the problems. We have beautifully formatted excel sheet which would give expenses and variances to the budget .. but.. the all important point - there have to be savings!

[Ekta] Good to know we have company.

[30in2005] That doesn't sound very encouraging at all :( But atleast you own a house now.

[Shionge] Just need to develop the all important discipline!

[John] Because you're rolling in money ??

John said...

Hahah.. y'know it ain't never enough.

Nee said...

Hey Pea -

Just one clarification...when I said your education is worth more, I didn't just mean in monetary terms. While I hope that does happen and you start getting the huge pay-packet of your dreams, I think what you get out of education is so much more than what can be weighed by money. You meet so many different people, grad school/advanced degrees are usually so challenging that you truly discover the limit of your perseverance. That's been my experience...perhaps I am romanticizing it!

Nee

Pea said...

[John] That it isn't ..why else would rich people work so hard.

[Nee] I do understand.. and totally agree. Just that am at my cynical best these days with all the hype about my school and no job for me. Money aside.. it was a great experience.