We usually talked ourselves out of anything unnecessary, but we also always allowed for an occasional treat to keep ourselves sane.
For me, it was going out to brunch. One girl needed new clothes because she was going through a hard time in her relationship and didn’t feel good about herself. She spent about $200, and we figured out how she could pay that off within two months.
Another girl liked to bake, so her treat was ingredients for a decadent chocolate pecan pie. And she actually turned her treat into a side business, selling holiday pies at our office Christmas fair and farmers’ markets for extra cash.
The Invaluable Lessons I Learned
It was a really long slog. There were a few nights—okay, a lot of nights—when I ate bread and butter. But that’s what I needed to do to get out of debt.
We started a calendar system, which was crucial for me because after I paid rent, utilities and credit card minimums, I was left with $45 to play with each week. I would subtract future expenses I knew were coming up from each week, which let me know in advance when I didn’t have anything extra to spend.
I also started what I call “secret squirrel saving,” which I continue to do to this day. Any cash pulled out of the ATM that isn’t immediately spent goes into a hiding place in my house. If I buy $16 in snacks, and break a $20 to do so, $4 goes right into the pot. Money from our yard sale? Yep, that gets squirreled.
To avoid temptation, I never count it until I need to use some or deposit it into the bank. Thanks to my secret squirrel savings, I will be able to splurge on a few fancy meals during an upcoming vacation.
Where I Am Today
Budgeting is a constant process of revision and tweaking, but thanks to those Money Lunches years ago, I learned to keep my eye on the prize.
I am now 30 years old, happily married and living in San Francisco—another very pricey town. I left New York City after five years, but I took the habits that I adopted from my Money Lunch days with me.
In 2011, I paid off my last credit card. I’ve also paid off almost $20,000 in student loan debt, with only $8,200 to go, which is consolidated at a very low interest rate.
My husband and I now pay our credit cards off every month. And with the first $8,000 we saved, I paid back the loan from my mother, which also lifted a huge emotional burden for me.
As for my fellow Money Lunch girls, when we met up a year after I moved to San Francisco (for lunch, of course!), we realized that two of us had paid off all our debt, save for student loans—and the third girl was just about there.
These days, I talk about budgeting and money management with a new friend via instant messenger–she’s my online money buddy. This summer, I even helped her to create a three-step plan for purchasing a piece of artwork. It’s Money Lunch 2.0!
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