Who Do You Know that Loves to Balance Their Checkbook?

Me!

My boyfriend told me today that I’m the only person he knows that actually loves to balance their checkbook. Which of course made me wonder….”…why?” Why do -I- love balancing my checkbook, as opposed to most people who don’t? What was the last straw that made this change in my personality?

So I got to thinking.

Back in 2005 when I was 25 years old and gas prices were starting to rise (especially after Katrina hit), I realized I had to buy a car. I was driving my 1978 Ford Bronco and spending $80/week+ on gas. I couldn’t afford to do that, and I wasn’t making much money at Terminix.

Everywhere I went turned me down. I went to dealerships, I tried other crappy financing institutions, and I couldn’t get a car loan from anyone. My father couldn’t even co-sign for me because he didn’t have good credit. My credit was lingering around 525 at this point, I had no savings, and let me tell you if some disaster struck, like the engine blew on the bronco or something, I would have been screwed.

And it’s not like I was some victim or anything, I knew I did all of that to myself. I didn’t pay attention to my checking account, I had no idea how much was really coming and going, I had checks bouncing, I was buying things I couldn’t afford (and didn’t need), etc. I was stupid and irresponsible. That’s all. No one to blame but myself.

One thing I did do right back then, was keep a small Capital One Credit card that I got in I think…January 2005? I had a limit of like $250, and I didn’t hardly use it or keep a balance on it.

So January 2006 rolls around, and I get an offer from Capital One for a $14k car loan (I’m assuming because I was doing well with their credit card). I had to pick from certain dealerships to do this, but I didn’t have a problem with that, I just knew I needed to get a car (a used one at that). I eventually found one down in Baltimore that had a used car I wanted (a black mustang with a manual transmission), and I went down and bought it.

Finally! My own car! All my own. Someone had given me a chance, and I took it. But let me tell you, I cried that night. Not because I was happy that I finally had a car, but because I was scared. I was scared that I couldn’t afford the car, and I had thoughts about trying to trade down or sell it already. How can I afford a car payment? I couldn’t even afford to live without a car payment.

I think that night is when I finally woke up about my finances. I started buckling down and making small changes through 2006 and 2007. I quit my job at Terminix and got one that paid $10k more a year. I started using Microsoft Money religiously, I stopped spending money, I stopped going out.

But probably the most important thing I did, was actually looked at the reports that Microsoft Money created that let me see how much I actually did spend on things. Once you see how much money you waste, compared to having absolutely no savings, and knowing that the money you wasted could be -in- that empty savings account, you finally wake-up.

Now my credit is lingering around 700 (as of Sept 08). Now I own a house, and have almost paid off the car 2 years early. Now I know every cent I have, every cent I spend, and I can slowly watch my debts grow smaller and my savings grow larger. Eventually when the debts are gone, the savings will grow larger faster. But really watching the debts widdle down is my favorite part of balancing my checkbook every month. And I think that’s why I love it and think it’s so much fun. Just watching that slow transition from hopeless to fulfilling.