This semester alone, I’ve paid nearly $3000 of student loan debt and made more money than ever before – on top of working 50 hours a week in grad school. While the money has been a wonderful development, the consequences have sometimes been challenging. By pushing myself to make more and more money to pay off debt that’s tracking at 6.8%, it’s meant stress, sleepless nights, and even, ironically, poor budgeting.
When I reflect on my decision making, I realize that making more money can lead to careless spending. You may balk or laugh, saying, “How simple? You’re just realizing this?” I assure you, while the realization is simple, preventing it can be a challenge.
Never before have I had such monthly budget surpluses, but I still have a lot to learn (and pay off). When you make more money, the tendency seems to be towards an “I deserve this” attitude. Somehow, I feel entitled to spend frivolously. This can wreck tight budgets and ruin savings plans.
So there you go… We all mess up. We all make mistakes. And, we certainly don’t always make the best monetary decisions. It’s all about how you stay accountable and react to the mishap. When I make a mistake, you can bet I’ll be writing about it – this is my method and medium for accountability.
Who or what makes you accountable for your spending?
Great article, Sam!
Thanks Danny!
Interesting! You may have started making more money too early in the porcess of financial awareness. Learning to control your ‘wants’ (for more on this one you could check TMP and I am using the short name so that you don’t take it as a shameless self promotion but as an attempt to be helpful) is a major part of the whole ‘financial health’ process – once you can control your wants and stop listening to people telling you to focus on needs, it all gets into place: the surplus gets bigger and you keep most of it (some can go on wants).
As someone who’s written two PhDs (and have two Masters), I can tell you being in Gard school is hard; and it is no joke: you need to do things that please you and help you relax. Otherwise, this thing of finishing grad school, working at high capacity and making side income may be a very short one.
What matters in life, I have found, just like in ultra-running, is not the speed but the rhythm; so, finding the rhythm of your life ought to become a priority if you are to minimise stress and maximise productivity.
Oh, your question about spending: accountability is discipline and it doesn’t work very well in the long run; mastering your wants is motivation and works like a dream. Naturally, I have learned to do the latter.
Maria,
Thanks for your thoughtful comment. Yes, grad school and work requires a significant balance. It’s something I’m constantly modifying and trying to improve. With the recent stream of revenue, I’d say that the hardest part is not feeling like eating out. It’s my one big treat in grad school! 🙂
All the best,
-S.
Sam, I completely agree with you. The first problem that comes with having more money is more money problems and it’s the most ironic thing in the world.
Think about the reason why so many highly paid sports stars end up broke. They spend too much and save too little.
Its good to treat yourself from the rewards of your hard work. Just don’t treat yourself too much, and save some of it up.