“Anonymous” said:
Ok, let me get this straight. You’re in serious debt. Your blog is titled “Fabulously Broke.” You’re selling off your belongings. You budgeted $200 for groceries but only spent $72 because you have someone feeding you for free, and/or you can live on oxygen and coffee alone, but yet you found almost $550 for clothing???
(head scratch)
Girl, you need a reality check.
I’m going to do a public response because a lot of you are probably wondering “WTF” is going on..
1. I am in “serious” debt, but it isn’t consumer debt. It’s education debt. I consider being in about $40k in debt serious, but I’m already paying more than what most people would normally pay, and I’m on track to clear it in 3 years from the time I graduated ($53,500 in 3 years!) so I’d call that a pretty solid “reality check” on my debt.
2. My blog is titled Fabulously Broke. I picked the name because it was catchy and I certainly was NOT going to call it Fabulously “Poor” because Poor denotes that I literally have no money.
But that’s not the case. I have money. I’m just learning how to manage it better and making sure it works the best way it can for me, without compromising my “fabulous” lifestyle (which isn’t what you could imagine actually, I’m not THAT crazy with my money because I do my research and I make informed decisions before I buy anything (now)… you’re just reading about ONE instance and ONE month in the past 1.5 years that I’ve been blogging.)
3. I get fed for “free” on the weekends because that’s BF’s way of being ‘fair’ and compensating me for spending 10 hours commuting up to see him every weekend and he doesn’t come down here (only because I have a 4-day workweek)
4. It’s also not unrealistic to spend only $72/month in food if you’re organized. I eat oatmeal and fruit for breakfast with tea, then I have a sandwich for lunch and I cook pasta + vegetables in bulk. Dimples does the same sort of grocery budget (she spends about $100/month to feed her and her girl), so if you’re organized… I don’t see what the problem is.
5. I didn’t “find” $550 to buy clothes. I took it out of my emergency fund because the dog chewed my winter boots and I had to get a new pair because we’re still IN winter. I do admit spending more than I should’ve, but I knew I had the money available and coming in to clear the bills without putting myself into further debt.
There’s no point in accelerating all this debt repayment if I don’t treat myself once in a while, and this happened to be a splurge month for me, but the next couple of months are pretty scarce in the splurges.
I also (to my recollection) have not bought a single piece of clothing or boots since last Summer/Fall.
6. I also cut my entertainment/going out budget quite low to almost nil because I’m putting up to 60%-75% of my income into debt, every month.
It’s all about what you prioritize in life. To me, creating a budget is to help me guide what I’m going to spend my money on this month, but it’s not a hard and fast rule with NEVER being able to spend outside of the budget once in a while.
I prioritize debt, but I’m not going to live my life throwing everything I’ve got, even foregoing any pleasure in life into debt.
If I did that, I wouldn’t have a BF, I wouldn’t go out with friends, and I wouldn’t have a life because my debt would’ve taken over me.
So if I see a pair of shoes that I’ve been looking for to replace my old shoes that don’t give me enough support and aren’t comfortable – if I can afford it and I have the room in my budget, I’ll buy them ahead of time before the summer hits because I know if I wait, I may never see those shoes again.
Same goes with pants and work sweaters. If I see a comfortable work blazer that’s made out of fleece or some soft cotton that is going to be worn many many times, I’m going to buy it because I’m re-building my wardrobe to contain the ‘essentials’ of what my new style is. But in the meantime I have a lot of things in my wardrobe that yes, I could wear, but I don’t because they don’t fit, or I just don’t have the occasion to wear those items any longer, or I just feel the need to pare down and minimalize.
7. I’m not selling ALL of my stuff. I’m just selling what I stupidly bought in previous years that I haven’t worn (tags still on, almost brand new, whatever) and making what I can off it because it’s sitting in my closet not doing anything.
So let me ask you. If you had an almost brand new car sitting around that you never drove, never went into, never bothered looking at, wouldn’t you think about trying to sell that asset to raise money?
Think about my clothes, shoes, purses and jewellery as “assets”. Sure the amounts are much smaller in comparison to a CAR, but they’re still assets. Have you never read Shopaholic Takes Manhattan by Sophie Kinsella? She does the same thing in that book to clear her debt.
It would seem counter-intuitive to go shopping for newer clothes/shoes when I have clothes/shoes already in my wardrobe…. but the clothes/shoes that I’m selling are items that I’ll never get a chance to wear and/or don’t wear because of the sizing, or for various reasons.
The newer clothes/shoes purchases that I make are more informed as in I’m really looking for the fact that I can wear it for more than 3-5 years (potentially), which means the heel can’t be too high or too uncomfortable, I’m buying for quality, and I’m making sure that I really need/want those shoes/clothes and that they fit into my lifestyle/wardrobe.
And the rest? I’m purging so they can go on to better, more deserving homes. PLUS, the money from that goes 15% into Cancer (family disease) and the rest into my debt.
So Anonymous, before you judge me on your high horse and tell me to get a “reality check”, consider that your situation might be different from mine, and your priorities are different from mine.
If I had a family my priorities would be different and I wouldn’t have bought any of those items, nor my new laptop. And I’m going to enjoy a small fraction of my income because I know that I’m putting the bulk of it into debt. I’m not not de-railing myself off the debt repayment track and I’m not going to let debt rule my life or the way I want to live.
Just a girl trying to find a balance between being a Shopaholic and a Saver.
I cleared $60,000 in 18 months earning $65,000 gross/year.
Now I am self-employed, and you can read more about 
I think it is brave of you put your personal finances out there for people to read. I don’t have the guts to put numbers out there on my blog. Bravo.
I don’t think you should have to qualify why you have debt, how you accumulated it or why it is good debt or bad debt. You shared this info because you were proud of what you have done for your financial situation. Readers shouldn’t try to diminish that because they may disagree. Just keep those things to yourself, nosy reader!
Yikes! Anon #2 was definitely not the original poster. ..hope you delete that spam.
I’ve been reading your blog a for for some time now – and you know what you’re doing. Anonymous commenters can make quick judgments from one post – but you know what you’re all about. I applaud that you acknowledge that you HAVE debt and are working to get out of it.
The only person that I would let criticize my budget is my own financial advisor, who knows me.
Is part of the stress happening here due to feeling judged?
Anonymous raises some good points, but to claim that FB needs a reality check when she cannot be fully aware of FB’s situation is inserting a personal judgement when none was called for.
How you choose to handle money is a deeply personal matter. What’s right for FB clearly seems extravagent to Anonymous, but chances are FB would be miserable & gain little benefit from the more stringent practices of Anon. It might even undermine her ability to save enough to pay off her debt. No one likes to live in misery when there are other options.
This is also one of the downsides to posting about such a hair-trigger topic as publicly as bloggers do. You open yourself up to a whole spectrum of responses. (Like the 2nd anonymous rant, above. Wow.) I don’t know the best way to handle it; I don’t think I would enjoy the public scrutiny.
Keep your head up, FB. This is another person’s opinion. Just an opinion. If it doesn’t ring true for you, then try to let it go.
I respect you for sharing your learning process with those of us doing the same thing!
Don’t believe one optimistic word from any public figure about the economy or humanity in general. They are all part of the problem. Its like a game of Monopoly. In America, the richest 1% now hold 1/2 OF ALL UNITED STATES WEALTH. Unlike ‘lesser’ estimates, this includes all stocks, bonds, cash, and material assets held by America’s richest 1%. Even that filthy pig Oprah acknowledged that it was at about 50% in 2006. Naturally, she put her own ‘humanitarian’ spin on it. Calling attention to her own ‘good will’. WHAT A DISGUSTING HYPOCRITE SLOB. THE RICHEST 1% HAVE LITERALLY MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. Don’t fall for any of their ‘humanitarian’ CRAP. ITS A SHAM. THESE PEOPLE ARE CAUSING THE SAME PROBLEMS THEY PRETEND TO CARE ABOUT. Ask any professor of economics. Money does not grow on trees. The government can’t just print up more on a whim. At any given time, there is a relative limit to the wealth within ANY economy of ANY size. So when too much wealth accumulates at the top, the middle class slip further into debt and the lower class further into poverty. A similar rule applies worldwide. The world’s richest 1% now own over 40% of ALL WORLD WEALTH. This is EVEN AFTER you account for all of this ‘good will’ ‘humanitarian’ BS from celebrities and executives. ITS A SHAM. As they get richer and richer, less wealth is left circulating beneath them. This is the single greatest underlying cause for the current US recession. The middle class can no longer afford to sustain their share of the economy. Their wealth has been gradually transfered to the richest 1%. One way or another, we suffer because of their incredible greed. We are talking about TRILLIONS of dollars. Transfered FROM US TO THEM. Over a period of about 27 years. Thats Reaganomics for you. The wealth does not ‘trickle down’ as we were told it would. It just accumulates at the top. Shrinking the middle class and expanding the lower class. Causing a domino effect of socio-economic problems. But the rich will never stop. They will never settle for a reasonable share of ANYTHING. They will do whatever it takes to get even richer. Leaving even less of the pie for the other 99% of us to share. At the same time, they throw back a few tax deductable crumbs and call themselves ‘humanitarians’. IT CAN’T WORK THIS WAY. Any ‘humanitarian’ progress made in one area will be lost in another. EVERY SINGLE TIME. IT ABSOLUTELY CAN NOT WORK THIS WAY. This is going to end just like a game of Monopoly. The current US recession will drag on for years and lead into the worst US depression of all time. The richest 1% will live like royalty while the rest of us fight over jobs, food, and gasoline. Crime, poverty, and suicide will skyrocket. So don’t fall for all of this PR CRAP from Hollywood, Pro Sports, and Wall Street PIGS. ITS A SHAM. Remember: They are filthy rich EVEN AFTER their tax deductable contributions. Greedy pigs. Now, we are headed for the worst economic and cultural crisis of all time. SEND A “THANK YOU” NOTE TO YOUR FAVORITE MILLIONAIRE. ITS THEIR FAULT. I’m not discounting other factors like China, sub-prime, or gas prices. But all of those factors combined still pale in comparison to that HUGE transfer of wealth to the rich. Anyway, those other factors are all related and further aggrivated because of GREED. If it weren’t for the OBSCENE distribution of wealth within our country, there never would have been such a market for sub-prime to begin with. Which by the way, was another trick whipped up by greedy bankers and executives. IT MAKES THEM RICHER. The credit industry has been ENDORSED by people like Oprah, Ellen, Dr Phil, and many other celebrities. IT MAKES THEM RICHER. Now, there are commercial ties between nearly every industry and every public figure. IT MAKES THEM RICHER. So don’t fall for their ‘good will’ BS. ITS A LIE. If you fall for it, then you’re a fool. If you see any real difference between the moral character of a celebrity, politician, attorney, or executive, then you’re a fool. WAKE UP PEOPLE. ITS ALL ABOUT THE MONEY. The 1% club will always say or do whatever it takes to get as rich as possible. Without the slightest regard for anything or anyone but themselves. Vioxx. Their idea. Sub-prime. Their idea. NAFTA. Their idea. Outsourcing. Their idea. The commercial lobbyist. Their idea. The multi-million dollar lawsuit. Their idea. $200 cell phone bills. Their idea. $200 basketball shoes. Their idea. $30 late fees. Their idea. $30 NSF fees. Their idea. $20 DVDs. Their idea. Subliminal advertising. Their idea. The MASSIVE campaign to turn every American into a brainwashed credit card, pharmaceutical, love-sick, celebrity junkie. Their idea. All of which concentrate the world’s wealth and resources and wreak havok on society. All of which have been CREATED AND ENDORSED by celebrities, athletes, and executives. IT MAKES THEM RICHER. So don’t fall for their ‘ good will’ ‘humanitarian’ BS. ITS A SHAM. NOTHING BUT TAX DEDUCTABLE PR CRAP. Bottom line: The richest 1% will soon tank the largest economy in the world. It will be like nothing we’ve ever seen before. and thats just the beginning. Greed will eventually tank every major economy in the world. Causing millions to suffer and die. Oprah, Angelina, Brad, Bono, and Bill are not part of the solution. They are part of the problem. EXTREME WEALTH HAS MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. WITHOUT WORLD PROSPERITY, THERE WILL NEVER BE WORLD PEACE OR ANYTHING EVEN CLOSE. GREED KILLS. IT WILL BE OUR DOWNFALL. Of course, the rich will throw a fit and call me a madman. Of course, their ignorant fans will do the same. You have to expect that. But I speak the truth. If you don’t believe me, then copy this entry and run it by any professor of economics or socio-economics. Then tell a friend. Call the local radio station. Re-post this entry or put it in your own words. Be one of the first to predict the worst economic and cultural crisis of all time and explain its cause. WE ARE IN BIG TROUBLE.
This most recent comment by anonymous sounds like constructive criticism and has valid points. They’re points for FB to consider (although she probably has) even if she doesn’t change anything. anonymous sounds like she (?) has read a lot about financial planning.
i was not judging — but questioning. there are many inconsistancies with what you write. first off, the acerbic tone of your response comment (not the post) tells me i’ve struck a nerve. your explanation post puts some perspective on things but not all. i realize i am walking into the clackers section here, but perhaps, this is the voice of experience, and is not coming from any “high horse.” so here goes:
1. there is “good” debt and “bad” debt. education falls into the “good” debt category, as does equipment for work, to wit, your laptop (which, notice, i did *not* question), mortgage (sometimes), life insurance. not sexy, but necessary. there’s a reason there are tax write-offs for the investment in a home office. an expenditure that you yourself admit was more than you planned (even if you have the money) is not good debt.
2. proper attire for work is necessary, that’s why there are such things a initial signing bonuses and clothing allowances. fine. having your boots destroyed by the dog and having to replace them, necessary. $550 to do that at the end of the season, when you admit you spent more than you planned? when you’re in debt, you need to ask yourself if spending that amount is justifiable. buy 9-west not jimmy choo even if that’s a step down for you, when you don’t owe as much, replace them and go upscale. don’t deny yourself, but be able to justify it.
3. clothing is not an asset. jewelry is, assuming they are precious gems and precious metals. clothing will depreciate, go out of style, wear out — it’s a consumable. when in debt, buy only what you absolutely need, buy the best you can afford and take good care of it. do not give in to trends. if you have enough clothing and accessories that you can comfortably sell them and not suffer, then you have too much. that also says maybe you have an addiction or you have simply fallen prey to fashion marketing and advertising, which can be insidious.
3. you mused that perhaps you should pay back BF for the food he feeds you. that sounds like a twinge of guilt, even if said in jest. if you do feel guilty, pay him something, even if you take the emergency fund spent on boots and use it for that. it doesn’t sound to me based on what you wrote that you are %100 ok with taking his food for free — so, don’t overspend on wardrobe and pay him back.
4. you said that $72 is not an unreasonable amount to spend on groceries. but you also said that you spent only that amount because you forgot to eat. so the inverse would be that had you remembered to eat properly, or at all, you would have spent more. food is a priority.
5. the car analogy is not a good one. i don’t know anyone (with the exception of the extremely wealthy, and even then…) who would purchase a car without making sure it was something that was a necessity. yes, circumstances change — a job loss, a relocation, a new job with a closer commute — can necessitate selling it off, but when you owe, you do need to ask yourself every single time you buy something, “do i need this?
this is part of growing up. just because you don’t have a family yet, doesn’t mean that you should not be thinking this way. this thinking will not just come as soon as you start a family. it needs to be integrated now so that it becomes part of who you are, and so that your future family will not feel like a burden. it’s not about denying yourself, it’s about being smart and honest with yourself.
and i am anonymous for my own reasons… you don’t know anything about me, who i am and where i’m coming from and i wish it to remain so. there is no reason to have this information to learn sound financial thinking and techniques.
Great answer! I might have to link to it if I ever get that question (which I will undoubtedly).
There are certainly more ways that my husband and I could save, but I don’t think we could do much more at this point without a good bit of backlash. After all, what’s the point of saving money if you can’t enjoy some of it before age 65?
Besides, and more importantly, we’re already cutting back in enough areas that I think we finally have a handle on things (we’ll know for sure in a few months once things have settled).
Just wanted to add my support as well. I think it’s great to see anyone, but especially a young unmarried female, demonstrating a bit of financial awareness. I know people with families who don’t put away retirement – even when they get a free match from their employer! We’re living in a time when we need to be smart about saving for the future and being aware of where our money is going. All the debt discussion and tools you provide here is great!
Great post, FB! You definitely are fabulous 😉
I really respect that you are managing your money and debt so well – I really am trying to do better financially in my life (at least have a clearer idea of financial goals, saving, etc) and I have to say a lot of the inspiration comes from you and your blog! So, thank you, and you are doing awesome. 🙂
Totally agree about the 8.75, the other one. And if people want to pay off even lower interest loans, that is their choice and I support that too–being debt free feels great.
I just wanted to further understand your position!
Ugh I hate when people make comments like that. Like, if you’re going to have the balls to be an asshole, then have the balls to leave your real name and a link back to your site so we know who you are. People derive a lot of guts from anonymity. Anyway, no worries about it. You have a plan that is working great for you and you’re making huge progress with your finances, faster than most people much older than you. Good for you.
grad school girl: Thanks for the positive comment!!
alison: I’m really touched that you came out of lurking (I lurk a lot but try not to), to tell me that… i’m not trying to tell people what to do with their life, but it irks me when people think i should deprive myself because i’m in debt… (when i don’t have to)
Anon: Thanks very much for the positive comment.. 🙂 I really appreciate it. Sometimes I do wonder if I should be pushing myself harder but then I look at my % and tell myself that I’m very lucky now to be able to pay it off so quickly due to my job
Andrea: Thank you.
It’s what I thought – they just read one post… but instead of judging people, she ought to really read through everything or give my blog a couple of chances to see whether I’m an idiot or not.
if I kept spending the way I did, spending $2000+ over my budget each month, I would be an idiot… i’d admit that.. but it’s one instance, one time, one month.
Stackingpennies: 8.75% and 6.75% I’m paying off the highest interest one first, and foregoing extra retirement payments just so I can clear the 8.75% (I don’t think I can earn more than 8.75% in the stock market so debt is a bigger priority now).. plus $17k is a healthy enough cushion for retirement..
Val: Thanks hon 🙂 Hope things are going fab with you and Ron
Just keep doing what you’re doing. Don’t let the haters get you down. Btw, I linked to your new blog in my most recent post. Good luck!
I’m curious (as a fairly new reader)to what interest rate your student loans are at?
Sorry if you have already covered that!
I do think $72/mo on food is really tight if you weren’t getting meals from the boy!
People are quick to judge (and give “advice”) but you obviously have a plan, have your priorities in line and are happy with your decisions
Great post!
I especially wanted to applaud when I read everything between, “I prioritize debt….” and “….I wouldn’t have a life because my debt would’ve taken over me.”
[I’ve snipped the middle content because of space.]
You have a very healthy, realistic attitude. You know the difference between “frugal” and “cheap”. You’re intelligent.
Don’t let negative comments get to you and don’t feel like you owe them a response. To give “anonymous” a little bit of slack, maybe she hadn’t read more than one blog post and didn’t understand the context of the blog. Hopefully she gets it now.
Well, from another anonymous I have to say I’m so impressed by you and what you’re doing…and at such an early age too. You’ve really taken control of your finances and you’re still living a life, and that’s a thing rarely seen in adults of any age.
Don’t be bothered by another anonymous who’s got his/her shorts in a knot.
I hope I can teach my son just some of the intelligence you show about finances, and life.
Keep up the amazing work!
Christine
delurking to say that i think you’re incredibly inspiring in the way you handle your finances. i doubt there are many people out there who are able to pay off their debt as quickly as you are paying off yours with the income you have. just because you have goals for saving and paying off debt doesn’t mean you should completely deprive yourself. and thank you, also, for sharing your journey – like i said, it’s very inspiring and educational. it’s very easy for some idiot to leave an anonymous message criticizing someone’s choices. just ignore them and keep up the great work!
I applaud this post. You don’t have to be “poor” to keep to a budget and to strive to get out of good debt and stuff. Don’t let anonymous comments get you down.