After a tough divorce, she worked hard to rebuild her finances. Spending a week tracking her expenses highlighted her progress.

Nicole utilizes a detailed spreadsheet, debit card envelopes, and calendar alerts set days before each bill is due. But it was only through a week of tracking her spending that she gained clarity on what remained after covering her costs.

“I was genuinely surprised,” she shared. “In a month or two without splurging or traveling, I realized I had money I could use effectively, yet I wasn't doing anything with it.”

At 56, Nicole resides in Raleigh, North Carolina, working as a senior executive assistant with an annual salary of around $100k. Having been divorced for nearly two decades, she's navigating menopause and a recent early breast cancer diagnosis while reconstructing her financial future independently. During the week tracked, her total expenses reached $1,718.93, with many items being necessary rather than discretionary.

“It’s really satisfying to pay off an $800 expense knowing I can afford it,” she commented.

Here’s a breakdown of her week.

Day 1: Weekly Bills Kickoff

? Total Spent: $155.24

Nicole began her week on Monday with two transactions: a $62.61 doctor's bill and a $92.63 cell phone bill, both automatically deducted from her account.

These were expected expenses, promptly recorded in her spreadsheet.

Day 2: A $7 Smoothie

? Total Spent: $7.09

Tuesday's entry was straightforward: a $7.09 smoothie for lunch.

Day 3: Healthcare Frustrations

? Total Spent: $30.38

On Wednesday, Nicole made a grocery stop ($15.76 for essentials) and settled another doctor's bill of $14.62.

The latter was frustrating, not due to the amount but rather because she had pre-paid for the procedure, only to receive another bill afterward.

“When you undergo certain procedures, prepayment is required. I was exasperated that even after paying, additional charges emerged,” she explained.

Research shows that nearly half of American adults find healthcare expenses challenging, with those aged 55 and over accounting for over half of all health expenditures, despite being only 31% of the population.

Nicole's frustration is compounded by her employer's third-party program which helps with deductibles, but only if billed correctly. If she pays upfront, she misses out on reimbursement.

“I often end up paying out of pocket only to learn later that the provider should have billed the program,” she lamented.

Jean suggested reaching out to the doctor's office for clarity on charges; you might be surprised by what gets removed.

Day 4: Gyoza and Socializing

? Total Spent: $9.00

Thursday was a small indulgence.

Nicole's coworkers ordered Thai food, and she decided to join, choosing gyoza — pork dumplings — along with a salad she had packed herself.

“I felt included in the group since we rarely have lunch together,” she mentioned.

When asked how socializing affects her budget, Nicole candidly admitted that most of her social interactions revolve around meals or drinks, for which she plans. She prefers sweet tea and occasionally enjoys a hard cider. “Those are typically in the six to nine dollar range,” she noted, “so nothing that strains my budget.”

Day 5: Pay Day, Bills, and a Personal Pizza

? Total Spent: $578.50

Friday marked the highest expenditure of the week, yet it brought her satisfaction.

She treated herself to a Dunkin’ run for $3.88, declaring, “It's been a long week, so I wanted a nice breakfast treat.”

Then, she began paying off her bills, one at a time:

  • Water bill: $47.21
  • BJ's credit card (for gas savings): $97.69, paid in full
  • Ann Taylor card (work attire): $135.10, paid in full
  • Student loan payment: $200, with an extra payment as usual
  • Belk card (for shoes and accessories): $75.42, paid in full

“It feels great to clear these cards because I dislike carrying balances,” she expressed.

Nicole's student loan is noteworthy; she describes her college journey as “the scenic route.” After high school in 1987, she spent two years in college, then served in the military before returning to finish her degree. Although she could pay off her loan now, she chooses not to, as the interest rate is just 2.8%, allowing her to invest elsewhere.

Jean noted that many borrowers might feel similarly, suggesting it could be wiser to invest in a 401k or other options while managing student debt over time. However, she warned about the risks of carrying student debt into retirement, emphasizing the importance of prioritizing its payoff when feasible.

Day 6: From Debt to Financial Freedom

? Total Spent: $795.67

Saturday's transaction was her largest: $795.67 to pay off her Apple credit card entirely, and she was clear on her reasoning for the immediate payment.

20 years ago, during her marriage, Nicole shared debt that was all in her name due to her ex-husband's poor credit. When they divorced, that debt remained hers.

“I couldn't manage that on my own,” she recalled.

This experience reshaped her entire mindset regarding credit. Now, she avoids carrying balances whenever possible and follows a system inspired by a financial program she completed about 15 years ago, adapting it to fit her life.

Instead of cash envelopes, she utilizes three distinct debit cards: one for household bills, one for entertainment (receiving $200 per pay period), and one for groceries ($100 per pay period).

“I’m working hard to transfer any leftover funds to savings, aiming to bolster my savings over what I already save,” she stated.

Day 7: Shopping at the Hemp Boutique

? Total Spent: $143.25

Sunday began with brunch ($25) and concluded with a visit to the Hemp Boutique ($118.25).

As she navigates menopause, Nicole's situation is more complex. Three years ago, she was diagnosed with early-stage breast cancer, which complicates her options for hormone replacement therapy. When joint pain began affecting her daily activities, she sought alternatives.

“My body feels like it’s aged significantly. I’m in constant pain, akin to the soreness from an intense workout without actually exercising,” she shared.

A recommendation to try CBD led her to the hemp store, where she left with tinctures and gummies. “Surprisingly, they help me manage my workday pain effectively.”

Weekly Spending Summary

? Total Weekly Spend: $1,718.93

Nicole’s $1,718.93 total may seem significant, but when excluding credit card payments and routine bills, her discretionary spending was quite reasonable. This week provided her with a clearer understanding of her finances.

More importantly, she realized she has more surplus each month than she initially thought. A key recommendation: consider opening a Roth IRA.

“It’s a tremendous benefit, essentially a gift from the government. You won’t owe taxes on it ever again,” was the advice given.

When asked what her vision of a comfortable future looks like, Nicole didn’t hesitate. “I don’t want to work at all. I’d love to volunteer but don’t want a part-time job for any reason,” she expressed. “In ten years, the desire to work will be nonexistent, so I aim to prepare for a life where I’m not obligated to work.”

With her established systems, zero balances, and extra savings waiting to be utilized, she’s closer to that future than she might realize.