I came to the realization yesterday that, monthly cash flow-wise, I’m in pretty much the exact same place that I was when I first started teaching almost five years ago.
Thus, I still always feel broke and am sometimes kinda depressed about it.
But there is good news: I’m broke in a good way now.
When I was 22 and fresh out of grad school, I was drowning in debt. I was making pretty much exactly $2,400 per month (after taxes) and most of my money was tied up in payments. I had no savings and didn’t even know what a retirement account was. And I just kept charging.
Now, after a few raises – but opting for a more expensive health insurance plan and higher federal tax withholding – I’m pulling about $2,600 per month. I’ve reduced my debt by over $30,000. And I’ve started saving. So much so that pretty much all the money that used to be tied up in debt payments is now tied up in savings (and slightly increased rent).
So, in terms of my monthly cash flow, I’m still broke. But now I’m broke because I’m doing the good things with my money instead of paying for a bunch of past mistakes. I guess this is all good, but if I’m really being honest I have to say it doesn’t really feel very different.
Are you good broke or bad broke right now?