Financial Taboo

Why is money such a taboo subject and why is the amount that a person earn such a big secret?  We all deal with financial issues and most of us struggle with them.  So why don't we talk about our issues and maybe we won't feel so alone in our day to day challenges regarding money.

Since I'm all about taking taboo subjects and discussing them out loud, I'm gonna tell you all my money secrets and then you, my readers, can hold me accountable and check in on me to make sure I'm doing what I've set out to do.

For starters, I earn $35.23 an hour on a day shift. Night shifts is $1.75 extra. Working the weekend is $1.25 extra. Being in charge is $0.70 extra (the 'extra' is a per hour fee). I work twelve hour shifts virtually every time I come in to work. Our pay periods are two weeks long. On average, I am guaranteed 2-4 shifts every two weeks as I work a .5 part-time position. Each shift, before taxes is $400. Most pay periods I am able to pick up enough shifts to have six to seven shifts per pay period. That's a fair chunk of cash, even after taxes. I'm not bragging about my income; quite the contrary, I'm wondering why I'm in such financial trouble. My gross income for 2009 was approximately $54,000. Five years ago, that amount of income was a totally unfathomable number, and now its not enough?!  What gives?!

I started working as a nurse in mid-December 2005. My first paycheque was $1250. I was ecstatic!! Finally I could spoil my kids at Christmas. My first full year of employment, 2006, was the year that I kept saying to myself, "I've worked hard and I deserve to treat myself."

Before I go on, I must clarify something; virtually all of my debt is student loans. I have absolutely no credit card debt, etc. My debt is entirely related to my education. All $50,000 of it. Why didn't I work while I was in the Faculty of Nursing at the University of Manitoba? Two children and a demanding course of study made that virtually impossible. And, I justified that by saying "soon I'll be earning lots of money."

Also, you must also know that I did not go into nursing for the financial rewards. I've wanted to be a nurse since I was four or five. I would do my job for half the wages I earn now for the pure passion for the work.

While in school my finances became a very low priority, so I paid little attention to my bank balance and to pre-authorized debits, etc. The NSF fees piled up in alarming amounts, car payments were not made on time, etc. In short, I developed some very bad habits.

Its those same habits that became amplified upon leaving school. And I say amplified because the amount of money I was earning made me feel like I could just relax and my bank account would take care of itself. Well, it did take care of itself, just not in a positive fashion.

Money just disappeared. I have no nasty habits, I don't smoke, I don't drink very often (maybe one or two drinks a year), I don't gamble. In short, all my money has gone to very legitimate expenses. And, for those of you who know me, the money certainly wasn't spent on fashionable clothing.

Here I am, having earned a good income for four full years with nothing to show for it. No savings, no debt reduction, and quite possibly the worst credit rating ever. I have $2000.00 in RSPs, but that was saved before I began school on a much lower income. I own my 2004 Kia Rio, but my mother loaned me $10,000 for  payment on the day of purchase.

I would estimate that $150,000 to $200,000 has flowed through my bank account in those four years. How is it that I have nothing to show for it?

Thankfully, something "clicked" for me in December of 2009 and I've begun to take a great interest in my financial situation. I could tell you, to the penny, what my net worth is. I could also tell you, again, to the penny, where all my money has gone since August 2008.

Obviously its not the income portion of the equation that is the problem, the issue must lie in my spending and the managing of my money.

There are no excuses for my situation, and I have no one to blame but myself. However, I manage my household on a single income.

Housing accounts for 22% of my expenditures. Childcare is 15%. Followed by food, transportation and other expenses.

Unfortunately, since I have begun to take such an active interest in my finances, there has been one setback after another.  In January 2009 the shifts available for pickup were few and far between.  In February I was ill and missed two weeks of work and had no sick days remaining.  Here we are in August 2010 and the pickup shifts are again few and far between and I've been advised to take sick time, but I cannot afford to do so.

What has improved, however, is my attitude towards money and the way I spend it. Prior to mid-December, I was using my debit card for all purchases and rarely checking my bank balance or remembering to allow for pre-authorized debits. Mid-December I started to use the 'envelope system.' Have you ever heard the expression that "the definition of insanity is expecting different results from using the same action"? That was me in a nutshell, I'd write up a budget and swear I would follow it from now on. Of course, that didn't happen. And I would do this repeatedly. Every six months or so I would "start over."

So it was time for change; I decided to try something that had worked for me when I was 20 and a single parent working at McDonalds and receiving social assistance; the envelope system.

Happy 2nd of January to you all!! Thanks for reading.