2008 New Year’s Resolution #2: Save $15K

I knew on January 1st when I made this resolution that it was ambitious. I used to make more money when I had a less rigorous screening process for new clients, but I found myself putting up with extreme unpleasantness on a weekly basis and my mental health took a huge hit. So not worth the $5K on my bottom line. Anyway, my lifestyle is incredibly cheap for NYC, and having no debt and no kids makes getting by a whole lot easier than it is for most people.

When I lived in Scotland in the 90s, I had a measly income and learned that I had to prioritize my spending in order to get the things that really mattered to me: a healthy savings account and lots of travel. I’ll cover travel another time (that’s New Year’s Resolution #1 every year). Since my income varies widely from week to week, I set my target based on 25% of the least I’ve ever grossed in a year as a massage therapist. 

The distribution of the $15K amongst my savings and investments looks like this:

Whole Life policy (just started this year):  $9000 in September – DONE
Roth IRA:  $5000 (the max) – $4K deposited, $1K to go
ING Savings/Emergency Fund:  $1000 – I think I put $300 in earlier this year

I am extremely nervous about how the economy is going to hit my business. It was fine until this week, which I’m hoping is just a glitch (I’ll be lucky to make half my average earnings by the close of business today). In about 6-8 weeks, I’ll get my annual lease renewal offer and will have to make a decision: can I make enough to cover my expenses and ride out the financial storm for a year? will it be a slow bleed that I can tolerate? or do I bail on this business and go do volunteer work abroad for 6-12 months until it’s worth working again? The last one is only a half-joke.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: