After seeing a few blog posts about Mvelopes, I’ve decided to give their program a shot.

The reason for this is that I see how it would be useful to have specific buckets (a.k.a. Envelopes) in which to plan for certain things that may occur either throughout the year or throughout the month. What I’m skeptical about is how easy I will find it to be.

While the program does link to (most) all your online accounts, it doesn’t physically transfer any money for you. So it’s really just a fancy way of telling yourself that you only have X amount to spend on Y this month.

Like I said, I’ve decided to give it a shot and take advantage of the free 30-days to see if I like it and if it makes any difference come my next pay period.

Like always – I’ll keep you posted.

For whatever reason, I was able to resist the urge to apply for a credit card all throughout college. And looking back now, I’m not only glad I was able to do that while attending college in Boston, MA – I’m amazed.

My personality is very impulsive/decisive, which is a nice way of saying that I spoil myself with nice things right when I want them.

After college is really where my trouble began.

Taking a job at a small business (12 people including myself), I was not paid very well – $24,000 per year. During this time I lived at home in order to make ends meet.

I had bought a 3-year old car from a dealer, an Acura Integra for about 13,000. And received a pretty good rate, due to my excellent credit rating (through store cards, etc – which I seldom used). My rate was 5.45%, making my monthly payments out to be about $253.

The other bill was student loans – again at very good rates. Through Sallie Mae I now owed about $17,000 and an additional $5,000 (0% interest) through my hometown.

It while sitting at my desk at this first job that I applied for an American Express Blue card online. Soon after, I used that card to buy an 40gb iPod for about $400. I also used the card to buy gas and small things – thinking that I would just pay it off right away and get the bonus cash from the 3-5% rebate paid out annually.

I was wrong.

One card became two cards and now – 5 years later I have – 6 credit cards and a personal loan from MBNA. I, of course, soon fell into the debt transfer trap. Unloading a large balance to a new card with a lower rate just to watch the now debt free card rise back up to bite me.

I have tried to get a better grip on my financial life before, but those efforts quickly failed for numerous reasons – none of which were good.

This year is going to be different, basically just because it has to be. I have spent too much of my early career trying to dig my way out of debt. With each pay raise I received my debts increased. I now make $40,000 a year, but have over $44,000 in multiple debts to credit card companies, a car loan and student loans. I have lied to myself about my situation and now, as we approach 2007, the lies end and the long hard road ahead begins.