Welcome to The Recession Diva

Hi. I'm Jamie. I'm the 99%-- just like the rest of you. I have a college degree and I'm unemployed. The difference is I am debt-free. That's right. I don't owe ANYONE even a penny, and I live in one of the most expensive cities in the country on a salary that is less than the median income of the US and FAR less than the median income in my area.

I have some very supportive friends that suggested I write a book on how I became debt free. I'm not sure I'm quite that ambitious, so I thought I would start a blog: The Recession Diva. Because even though I live within my means, I feel like I live very, very well, and I'd love to share my tips

with you.

Hopefully I won't be unemployed for long. I'm not trying to teach you how to work the system. I'm here to teach you how to work YOUR system. My budget is not your budget, but you can take my framework and tweak it to your lifestyle. And if someone comes along and offers me a book deal, well, I'll take it.

Tip #1, and the most important: MAKE A BUDGET. Make a budget and stick to it. Give yourself a little leeway so you don't beat yourself up if something comes along, but by and large, live on a budget. All the time.

I use an Excel spreadsheet. It looks a little something like this:

That's an old-- and for some reason, very small-- screenshot when I was pulling in a regular paycheck. (I know it's a bit transparent to leave the real numbers in there but without them I'm not sure it would make sense. And yes, I actually pay $937 for rent.) As you can see I put the weeks into the columns and my expenses into the rows, listed by due date. The bottom of each column feeds into the top of the next week. I do an entire year at once so when I have some sort of big expense I can see how it affects me all the way down the line.

The BIGGEST thing for me is my cash allowance. I never, ever use my check card. Doubly important if your big, evil bank is going to start charging a monthly fee for debiting, as the rumors go. I give myself a cash allowance every single week, and that is what I use for groceries, eating out, movies, etc. Once my wallet is empty, I'm done spending. It's far easier than using a check card to run all your errands, forgetting to reconcile your purchases, and suddenly discover you're out of money before the next payday. Alternatively you could get a 2nd checking account with a separate check card and auto-deposit your "allowance" into that. I prefer cash; it's up to you.

So go ahead. Make your own budget. E-mail me at phaino@gmail.com or let me know in the comments if you have any questions. And I'll be posting new tips once or twice a week.

Living within your means IS within your reach. If I can do it, you can do it!