Wait, You Mean I Have To Be Responsible With My Money, Too?

posted 4th March 2011    Written by: Katharine    CATEGORY: All Posts, Katharine, Money, Season 4, Travel


My first year living in the City of Brotherly Love I worked at the District Attorney’s Office, making a measly $28,500 salary.  I opted out of health insurance and a 401K account because I couldn’t afford the deductions from my paycheck. I would much rather have money in my pocket than in an account doing whatever money does in an account. Or at least that’s what I thought then.

I racked up over $8,000 in credit card debt to pay my bar tabs and shopping sprees because I wanted my own version of Sex and the City. Screw paying rent every month, I wanted new clothes and to drink my body weight in vodka every weekend.

When I got a job at my law firm in 2008, I earned a $65,000 salary, had exceptional health benefits, 4 weeks of paid time off, and finally started a retirement fund and contributed the maximum amount.

Oh, the difference between private and public sectors.

It was the first time I could spend my money without feeling guilty about it.  I paid off my credit card debt, treated myself to pedicures every month, and traveled to Las Vegas and Tampa for hockey tournaments and still had a good chunk of money in my bank account.

I really wish my parents taught me the importance of using credit cards wisely and how to budget money appropriately.

My biggest concern with moving to Prague isn’t how much stuff to bring; it’s how much money do I need?  One of the main reasons I chose to study in Prague is because the cost of living is significantly cheaper than anywhere else in Europe.  My school recommends that I bring 16,000 koruna (~$900 USD) for every month that I intend to live in the city.  That’s enough money for rent, health insurance, and food, with some spending money still left over.  Do you know how much $900 gets me in Philadelphia?  One month’s rent and one week’s worth of groceries.  That’s it.

I really want to make the most of this opportunity to travel and teach abroad.  I’ve already booked a flight to Paris in April, after I complete my certification.  I also have plans to travel to London to visit a friend, Warsaw with my roommate when she visits in May, and I’m dying to return to Rome to gorge on delicious pasta, cheese, and wine.  But I also want to visit South Korea, Costa Rica, Australia, and New Zealand, and traveling to those places aren’t cheap.  I’m afraid I won’t find a teaching job, spend all my money, and have to return to the States sooner than I intend.

I know what you’re thinking:  “But you will get a teaching job!”

I’m trying to be all ‘Peppermint Positive Patty’ about this (get it?  ‘Negative Nancy/Nellie‘ and ‘Positive Patty?’  No?), but like everything else in life (except death and taxes, of course) nothing is certain.  I want to be as realistic as I can about what I’m getting myself into so that I don’t set myself up for disappointment later down the road.

Perhaps the most frustrating thing in all of this is that I won’t have any answers to the millions of questions running through my head until I get to Prague, complete my certification, and start looking for a job.

So for now, I’m just going to estimate how much money I need to have access to, be smart about spending it once I get there, and hope for the best.

What are your thoughts?  How do YOU budget money?  If you’ve traveled or lived abroad, how do you budget your expenses?  Got any tips for me?  Come on, let’s take our relationship to the next level here.

{photo credit: Public Domain}

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Comments (11)

11 Responses to “Wait, You Mean I Have To Be Responsible With My Money, Too?”

  • suki Says:
    March 4th, 2011 at 8:54 am

    Thankfully when I was abroad, I had a stipend which covered my rent, food, and even travel. There was always a little left over, so I made sure not to overuse it in the following month since I had lots of trips planned. The best thing you can do is start off spending as little as possible to see what your bare minimum to sustain yourself is and of course, plan ahead.

    If you don't find a teaching job right away, take on a part time job doing something else. Maybe tutoring or work in a coffee shop in the meantime. But that's after the whole program – relax and have fun! :)

  • Juliana Says:
    March 4th, 2011 at 9:12 am

    We've been doing some radical budgeting since preparing for me to quit the day job, and our current method is something like this:

    Pay most important stuff first (and spend that money in your head before you pay the bill)… this includes house, utilities, and groceries.
    Then, that money is already "gone" but you have your shelter & food covered.

    We try to then budget a certain amount for a savings account, again "Spending" it in our heads before we even look at the account so that we're not tempted to do anything else with it. We only go to restaurants if we have a gift card or it's part of our spending cash for the month (we take out a certain amount in CASH to spend on random stuff, and then that's it for fun money.) Anything I make from playing music goes into my personal business account and I usually spend it on biz expenses.

    Not always "fun" but it's really not so bad… and we haven't yet had to freak out about whether or not the lights will get turned off.

  • asummermoon Says:
    March 5th, 2011 at 2:35 pm

    I made an excel spreadsheet listed every bill I have to pay; the standard living bills, the bills I created from wanting a little luxury, and the bills I feel are needs(like getting my hair done since I don't know how to do it myself) after you look at all of your expenses you have tough decisions to make. See what you can cut out and what has to be paid so that the creditors aren't calling. It's a good way to save because you have a clear picture of what your "left over" money looks like. This is the method I used to save for my house and it worked for me. it was cheaper then buying expensive budget keeping software.

  • Kristin Says:
    March 6th, 2011 at 6:48 pm

    Great post Katherine, thanks! I love that you are getting ready to head to Prague for your teacher training! I am currently living and working in Cali, Colombia teaching at an international school, so I know the prep work and planning process for going abroad can be overwhelming. I budget my expenses much like I would at home, however I am stricter with my day-to-day budget because any money not spent on going out to eat, TV, etc. is more money for travel! Safe travels on your adventure :)

  • erinmakesitwork Says:
    March 6th, 2011 at 7:54 pm

    I have been so bad with money in the past. I am just now starting to figure it all out. I'm pretty excited about this new year and learning to stick to my budget. I agree with Juliana about paying off the big things first and then going from there. It's scary, but it feels good to know the essentials are covered.

  • Kate Says:
    March 6th, 2011 at 8:17 pm

    I definitely want to spend as little as I can in the beginning, but everything is going to be so new and I know I'm going to want to go to all of the great pubs and restaurants in Prague! But I definitely plan on cooking more at home during the week and use my spending money on the weekends when I'll have some more free time to hang out with my new classmates.

  • Kate Says:
    March 6th, 2011 at 8:18 pm

    I definitely agree about paying the most important stuff first. Thankfully, my program and housing is already paid off, so my first month I'll just have to worry about spending money (food, drinks, etc). I know I'm going to get caught up in buying all of the awesome stuff in Prague though — and I know I'll want to send my friends and family post cards while I'm abroad, so I'm sure that's going to cost some money!

  • Kate Says:
    March 6th, 2011 at 8:19 pm

    I've been using Mint.com for a few years now and I love it. I'm hoping I can still have access to it while I'm abroad. The good thing is, my housing is already paid for, so the first month I'll be in Prague, I will just have to worry about food, drinks and spending money.

  • Kate Says:
    March 6th, 2011 at 8:21 pm

    I definitely spend more than I should on dining out, etc when I'm with my friends, but the way I look at it, I'm paying for an experience. Especially lately, I've been spending a ton on brunches out with my girl friends, but we've created some wonderful memories over those said brunches and it makes spending that money absolutely priceless!

    I'm definitely going to try to cut way back when I get to Prague and buy food at grocery stores so I can cook during the week (and only buy the necessities) so I have a bit more spending money on the weekends when I have more free time available to me.

    Thanks for the great tips, Nadine!

  • Kate Says:
    March 6th, 2011 at 8:22 pm

    Thanks, Kristin! I'm soooo anxious about leaving in 11 days! Can you give me any tips on surviving jet lag?! Help?! :)

  • deebuzzing Says:
    March 7th, 2011 at 1:24 pm

    Um, I wish I were worrying about how to budget money in Prague, you lucky lady! For now, I'm worried about where the money for my next glass of wine will come. I need to learn a lesson from you!

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