Trying to Look At The Big Picture

For the new year, or maybe to end the old year, I zeroed out my finances. I have no outstanding bills from 2010, credit card or otherwise. Then, I took any money in my checking and moved it to savings. I am starting fresh with my Jan. 1 paycheck.

In doing that, it allowed me to look at my savings, and where I am after a 2010 that was a bit up and down. A living situation with lower rent and only two miles from work were big improvements. Medical bills were a frustrating setback, and my extended vacation, while much needed and not at all regretted, ate away at my savings, as well.

Looking at my savings, the numbers aren't where I want them to be. After all, I managed to rack up $44,000 in debt, in two years - and I was not a shopaholic, nor did I consider myself wasteful.

Ending the year with only $4000 in savings (not including actual retirement funds, which don't add much to the total, anyway), seems like not nearly enough. Not with all the things I haven't bought, the trips I haven't taken, the drinks I haven't had (seriously, $3 for a soda?). I want that number to be $40,000 to the plus side!

Wisely, before I got too depressed about it, I flipped back a page or two in my savings account register, to December 31, 2009.

One year ago, after paying for Christmas and auto insurance and auto registration and all of those "December only" bills....I had $400 in savings. (Also, I am pretty sure I was still paying some medical bills at that time.) Although I had been putting money away for those "annual payments" I had never even thought about the holidays, and $600 of my emergency fund had gone to pot lucks and Christmas cards.

Two years ago, as we closed out 2008, I had $100 in savings. I had used my emergency fund for auto and renter's insurance, and for my car registration, which, in Nebraska, includes your property tax for your vehicle, as well as your tags. I don't believe I did much for Christmas that year. Oh, and I still had some debt, as well, though I was paying it down as fast as I could!

When I go back farther then that, I am looking at negative numbers - car payments and the loan from my parents that got me through the darkest times. I don't believe I've ever met anyone who declared bankruptcy and walked away with no debt at all.

I started to see a logarithmic pattern.

I started to feel a little bit better. In 2009, I increased my savings 4 times. In 2010, it would appear I increased my savings another 10 times. I'm no math wizard, but I am pretty sure if I hold even to the 10X, then I will end 2011 with $40,000 in savings. If the logarithm holds, I will have more then double that!

Not really sure how that's going to happen, since I don't make $40,000 in salary and I don't play the lottery.... but I am looking forward to finding out!