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Budgeting For Mistakes

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Over a large period of time, you're going to slip up. You're human. But at the heart of this article is a key question: Are you budgeting for mistakes?

A Sad Wheel

The other day I was walking around campus, and saw a lone bicycle wheel. The metal sat flat against the concrete, locked on a bike rack – the rest of the frame was gone. The problem was that this (former) bike owner only locked the front wheel – not the frame – to the rack. Now, they were likely out $100-200. Over a large enough period of time, you’re going to slip up. You’re human. Humans make mistakes. Sometimes it can be difficult to find the self-compassion to get over these events. At times, I’ve beaten myself up over the woulda coulda shouldas. But at the heart of this article is a different question: Are you budgeting for mistakes?

What A Parking Spot

When I was an undergraduate student in college, I was driving my ex-girlfriend’s car to one of my favorite unhealthy chain restaurants: IHOP. As I pulled into the parking lot, I confidently turned into an open space. Just when I was about to turn the wheel back to center, I scraped the entire side of the neighboring car. Suddenly, I was unprepared and only had a few hundred dollars in my bank account. I panicked. What could I do? I was unprepared. I trip, fall, drop, and spill frequently. I know I’m accident prone. By admitting that I make mistakes and beginning to budget for such events, I’m getting ahead of it. Instead of being a reactionary mess, I’m looking to become preventative and protective. By choosing the latter route, it’s an admission of my humanity. But up until now, I haven’t wanted to partition a group of funds to protect against this unfortunate scenario.

We Are Fallible

Whether you call it a rainy day or emergency fund, saving a portion of your income for poorer times is a must. Paying off your debt, investing, and balancing your budget are all great steps to a healthy financial life, but unless you are budgeting for mistakes, you’re not going to be prepared or realistic. It’s time for you to create an emergency, mistake fund, and here are three terrific resources/websites to do just that:

What is the purpose of an emergency fund?

Is a $1000 emergency fund enough to start?

The true importance of an emergency fund

Over Budget Birthdays

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My over budget birthdays. It’s easy for me to spend and challenging to save. Maybe I’m not as good as you, but I aim to be better.

I’m floating in the Chicago skyline; this can’t be good for my budget. Down below, the third-largest city is in full swing, but I can barely hear the traffic from here.

Here, you’re removed from polar weather, abject poverty, and even the tiling of consumption at “The Magnificent Mile.” The price I pay for this distance is staggering – embarrassing even. I hesitate to tell you. On this random Sunday night, the room costs $200.

All summer, I’ve stayed incredibly frugal – hardly ever going out to eat or traveling. To place an endcap to the academic break, a birthday party in Chicago for someone I love seemed fitting.

Activities abound in the rousing ruckus of Chicago: Runs along the lake, comedy shows, Broadway-level theatre, and more. Over the years I’ve done them all. Some have cost me a small fortune to enjoy the entertainment.

My budget – my superego – has hated me every time. Almost like an outside entity, it groans with the credit card swipes. The Excel numbers dance in place to say, “Look at what you’ve done now.”

In total, this celebratory getaway costs me a small fortune; a year’s salary for much of the developing world: $400.

Is it worth it? Yes and no.

This is the last hurrah for the entire summer. I’m stopping unnecessary spend after this little vacation until maybe December. For the first time in my adult life, I truly saved and accounted for this trip. I participated in medical experiments all season to afford this moment. And, most of all, I took pleasure in celebrating someone special in my life – taking the time to show them I care.

Unfortunately, the answer is more gray. I also have nearly $40,000 in debt awaiting me back home – in the real world. A $400 trip will still be financed because it delays that amount of money I could’ve spent on repaying debt. 6.8 percent interest from the Federal government swirls in my head on a near-daily basis.

I’m left in a neutral place – somewhere between budgetary hell and heaven.

This is what I know: When I go out with people, they frequently joke about my frugal life. I think they expect me to be cheap and greedy. What I hope they see is that I’ve adopted this spendthrift lifestyle because I’m failing.

It’s easy for me to spend and challenging to save. Maybe I’m not as good as you, but I aim to be better. I’ve wasted gobs of cash for things I don’t need, and I’m not proud of that. That’s why I’m here, writing to you, and hoping we can share in this journey back to zero (debt).

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