July 2011 Update

Hello there!

I just realized that I hadn't written since May. Whoa -- sorry about that. June was a pretty busy month. I'll try to get back on schedule here.

So ... the update. I've been kind of "spendy" lately, but I think I'm finally finding some kind of balance. I recently went over the numbers in preparation for a meeting with the financial planner. After adding things up, I realized things are actually OK. Not great, but certainly not bad. Still, I have to scale back my spending a bit.

One major expense has been health care. I switched to a high-deductible plan with a health savings account this year. There were a couple of reasons for doing so, including its lower cost and the employer contribution to the HSA. There are also tax benefits. However, one problem with the HSA is that unlike a flexible spending account, you can't use your HSA until the account is funded with enough money to cover reimbursement. While I was able to use the HSA for some minor expenses, things like injections and the MRI required some considerable outlays from me in order to meet my deductible. (Thankfully, my deductible was recently met. My copay for the rest of the year will be significantly more bearable. This is welcome news, as I need another epidural for my back pain.) The good thing is that I will be reimbursed at the end of the year for the larger expenses; by then there will be enough funds in the HSA.

I've also had to make two grown-up decisions. The first was that I do not need a smartphone. I've been rockin' the same flip phone (yeah, that's right -- a flip phone). I had finally decided on upgrading to an iPhone when I realized that my iTunes version is too old. And then I realized that my Mac OS is too old to update my iTunes. And then I realized that before I get a smartphone -- iPhone or otherwise -- I have to take care of other priorities first. Not getting a smartphone was a minor decision; prioritizing future purchases, however, required being an adult.

The second was the painful decision not to attend yet another friend's wedding. It's just like the last time: I would've had to pay for airfare and accommodations. Oh -- and this time a ferry.

After doing the math, I realized that it just didn't make sense financially. Though it would've been great to be there, I have other things that require attention. I'd warned my friend that I might not be able to go, and he seemed to understand, but returning that RSVP still sucked.

I still have a credit card balance for the mattresses. I'm paying well above the minimum every month, and more importantly, I'm not incurring any additional debt. And I'm maintaining my regular savings as well as my retirement savings.

Overall, things are pretty good. It ain't always easy, though. It requires diligence and sometimes some tough decisions.

April 2011 Update

Has it been a month already?

I don't have much to report, but I'll give it a go just the same. I had the timing belt replaced on my car finally. It had been plaguing me, so I'm relieved to have had it done.

I'm still debt free. Mostly. No, no, it's not like that. I'm not back-sliding, as they say. I've been very careful about paying off any debt every month. The savings picture is OK. Not great, but OK. The auto repairs -- the timing belt replacement in particular -- weren't cheap. And there were a few other things, including the blender (which I still love), a couple of sweaters, and other treats.

I've also joined a gym. To make life easier I've already funded the account that the dues are coming from. I won't have to worry about it until next year.

What else is going on? Let's see ... Oh! I'm shopping for mattresses tomorrow (finally!), and I plan to buy. I was hoping to wait until I received my home buyer credit, but I have no idea when that's coming and I owe it to my back, which has only gotten worse in the last year, to go ahead and take care of it sooner rather than later.

All in all, things are good. And that's no April Fool's joke. :-)

March 2011 Update

Things are going pretty well. I believe when I left off I'd just splurged on a VitaMix blender. One would think there would be some buyer's remorse, but nope. I love it! I've used it practically every day.

In other financial news, I filed my tax return. I've received the regular portion of my refund, but not the home buyer credit, which apparently takes longer to process. Granted, I'm glad to have received part of my refund, but I was hoping to get the full amount. Oh well.

I've also taken care of some auto repairs. I had my drive belts replaced and the transmission fluid flushed last weekend. Next week? Timing belt. It's overdue and I want to take care of it before it becomes a problem.

Wow -- this is a really boring post. I like to think that that's a good thing, especially for a debt blog. Still, I'm about to myself to sleep with this, so I can only imagine how you must be feeling. I'll do us all a favor and close.

February 2011 Update

Happy February! I hope everyone is having a wonderful 2011 so far and making progress on paying off debt. And if not? Well ... there's always tomorrow to get back on track.

Things with me are going fairly well. I met with my financial planner a few weeks ago and opened a Roth IRA to supplement my 401(k). I had to make a deposit to open the account (of course), and will start the monthly contributions in mid-March.

Not counting the retirement funds, though, I have about $5,000. While it's not too shabby, it could be -- and should be -- higher. I've been dipping into my checking account cushion more than I'd like. This makes me nervous; I'm afraid of lapsing into old habits. For example, I'd been using a credit card (responsibly) to take advantage of an offer for extra rewards points. I paid the full balance at the end of the month, like I was supposed to, but the whole time I had a balance, I felt ill at ease. I've got to get over that. I've got to heal my relationship with money. Right now it has way too much power. I think about it constantly. For a long time I allowed the debt to control my life, influence my well-being. I equated my self-worth to my net worth. Now I'm doing the same thing with my savings.

I recently completed my federal and state tax returns and will mail them later this month. It was my first time itemizing. I'd obsessed about that for months, but it wasn't as bad as I'd made it out in my head. Thankfully, everything was straightforward. Anyway, I'm due a decent refund, so I'll have that to look forward to in a month or two. (Apparently it takes longer to process returns for those who claim the first-time home buyer credit.) I still need new mattresses, and there are a few other things I'd like to purchase. Also, there are a few trips in my future: a friend's wedding in Massachusetts this September, and a vacation for me in May 2012 (details to be announced later). And I'm thinking about a quick overnight trip to Richmond in April. I want to hit the museum and do a little window-shopping in Carytown. It's time I start doing some fun things.

So that's where we are this month.

What a Difference a Year Makes

Last year this time I still owed almost $6,000 on my credit cards. This year? Zip. Zilch. Zero. Happy New Year!

I don't want to sound like I'm gloating, and I hope it doesn't come across that way. But it is a great feeling and a great way to start off a new year. If you're still struggling with your debt, please, by all means, keep at it. The sacrifices are so worth it.

The other great thing about not having debt? Being able to splurge occasionally without (too much) guilt. The other day I bought a sweater that, though 50 percent off, was still pricey -- at least in my world. But I desperately could use new clothes, and the sweater was right up my alley.

That said, I still have work to do on finding a balance between spending and being a miser. For example, I bought that sweater without giving it a second thought. But just thinking about buying furniture makes me so anxious I can hardly stand it. Today, for example, I walked into a furniture store, stood there a few feet inside the door, looked around, and walked out. I just couldn't deal with it.

So see? I've got a lot of work to do as far as my relationship with money is concerned.

I am trying an experiment this month: I am going to try to use my credit card with a high cash-back reward for my grocery purchases throughout January and pay it off at the end of the month. I will check in on my progress. The goal remains for me to not have any revolving debt, except the occasional small amount to keep the account active (and the bank fairly happy).

I meet with the financial planner in a couple of weeks. We're going to discuss opening an IRA and any tax concerns or considerations coming up. As for the tax refund -- including the home buyer credit -- it's going directly into my savings account. I will use some for a new couch this year, but I may put off any other furniture purchases until next spring. Well, that is, unless I find something I absolutely love.

For now, though, I want to concentrate on how wonderful it feels to be debt free. Here's to a prosperous 2011.

10-10-10

Today was to have been my big debt-free day. I worried earlier this year that I wouldn't make it, what with the condo purchase. Amazingly -- blessedly -- I paid it off almost two months early.

I had wanted to have $10,000 in savings in addition to being debt free. I didn't manage to do that -- what would've gone into savings actually went toward the purchase of the condo. But I do have savings, and that's a good thing.

I am happy to report that I remain debt free. I have used the credit card for various purchases (like my outrageously expensive new progressive eyeglass lenses), but I paid them off immediately. I am afraid to have even the smallest amount revolve. Debt always starts with that first purchase.

I have made one costly mistake. So vain was I about getting progressive lenses in my glasses that I had a distance-only prescription put in instead. I lasted all of a month before throwing in the towel and having the optometrist send me the prescription for progressives. And I splurged on the latest technology -- something called individual progressives. They were not cheap. Oh, no, they were not.

Of course, this mistake means I spent an extra couple hundred dollars on lenses that ended up being worthless. I'm calling it my Stupidity Surcharge. Or Vanity Fee.

Tomorrow I meet with the financial planner. I think our meeting will last a couple of hours. I'm eager to hear what he suggests and to get things started. I can't see using him beyond one year -- unless I benefit from some unexpected financial windfall. But as I've said, it will be good to get a foundation in place.

In other news, my wardrobe is pitiful. I am going to try to buy something at least once a month, but we'll see how that goes. It depends on the budget. That I hate shopping isn't going to help.

Next month is a three-paycheck month, so I'll have some wiggle room. I plan to put most of that "extra" check in savings. Also coming is a freelance check for work completed in September, and a check for work that I will start in November. That money will also go into savings.

And so that's where I am on this day, 10-10-10. How are you doing with your debt?

What Worked for Me

I'm happy -- and thankful -- to report that I am still debt free. It hasn't been a month yet; I'm still a newbie. I don't know what to do with myself, to tell the truth. For so long I defined myself according to my debt. All of my actions were driven by my credit card balance.

I am working hard to overcome it. In fact, I bought myself a present this evening. Nothing huge, but something to reward myself for my hard work. And it was hard work.

Which brings me to the point of this post. I thought I would share the tips that worked for me the last three-plus years. Please keep in mind that I am not a financial adviser. (If I were, I wouldn't have hired one myself recently.) What worked for me might not be doable for you. I'm single and I don't have any children, so I was able to forgo a lot of things that many people may not be able to do without.

Without further ado, I present Veronica's Top 10 Tips:

1. Realize the problem. You know the saying that ignorance is bliss? It is. As long as you don't know the exact number of your debt, you can convince yourself that it is inconsequential. You might know it's high, but not how high. Eventually, though, that number will catch up with you, and when it does, it won't be pretty. I have a clear memory of lying in bed one night and doing some quick math. I'd been charging a little here, a little there. It never seemed like a lot, and I was current on all my payments. But when I did some quick math, I estimated I owed nearly $30,000 between my car loan and credit cards.
   
2. Get acquainted with the true number. This one is closely related to #1, but it's a little more involved. You will refuse to get acquainted with the actual balance unless you realize the problem. But once you have realized it, sit yourself down with a calculator and your credit card statements. Who knows -- maybe you won't owe as much as you thought you did. For some of us, though, that number is a rude awakening. You may feel like throwing up afterward. Or you might have trouble sleeping a night or two (or three). But you can't tackle the problem if you don't know what the problem is and its extent. Which brings me to ...
3. Commit to tackling your debt. This goes beyond just telling yourself, "I want to be debt free." Well duh! Of course you want to be debt free. Who doesn't! No, the mindset you need here is, "I will be debt free." It's a shift in your thinking -- it means that you plan to work to do it. My commitment included starting this blog so that I would feel accountable for my progress. How you make the commitment is up to you, but you must do it if you're going to succeed.
4. Come up with a plan. People have different methods of tackling their debt. What worked for me was this handy debt reduction calculator, which allows you to plug in your balances and interest rates, as well as when you want to be debt free. The calculator spits out what you'll have to pay per month to achieve your goal. A word of caution: You must be realistic about your goal pay-off debt. Sure, I would've liked to have paid off my $21,000 credit card debt in a year, but do you know how much I would've had to pay per month? (Actually, I don't either, but I know it would've been a lot.) If you're going to do this successfully, you have to be realistic about your circumstances. If you try to pay more than you can realistically afford, you are going to burn out and quickly.
   
5. Stick to the plan. Yeah, I know that sounds like a no-brainer, but you'd be surprised how hard it is. It's the holiday season ... maybe I'll skip a payment. No. That is not allowed. Unless it is, say, a medical emergency, if you've set up a realistic plan, there is no excuse not to stick to it. In fact, challenge yourself: Instead of sometimes skipping a payment or paying less, try to pay more when you can afford to.
6. Do not forgo everything pleasurable in your life. Again, if you've been realistic about your payment plan, you will not have to eat beans and rice every night. You will be able to occasionally enjoy a dinner out with friends, buy a new item of clothing, get those cute shoes. This does not, however, mean that you can live beyond your means. Living beyond your means is what got you in this position in the first place. (And haven't you had enough of that?) But it does mean that you are a human being who is allowed some simple pleasures. If you cut out everything, you will get frustrated. And if you're an emotional shopper, getting frustrated is going to trigger your desire to spend.
7. Introduce challenges. Once you've gotten the hang of your routine, try to challenge yourself occasionally. Practice minimalism. See if you can go a week without buying beyond what is necessary. Later, try two weeks. Then maybe a month. This is not as easy as you'd think. You have to plan out your groceries. And forget about those cute shoes. But if you make it a game, it's actually kind of fun when you "win." Have a friend do it with you -- the support is beneficial and the competitiveness might just spur you on to victory.
8. Don't beat yourself up over mistakes. I beat myself up over that ridiculously overpriced haircut I got a few years ago. (Would you believe that "stylist" and her sister were recently profiled in More magazine? I laughed out loud when I saw her in there. People, the emperor is not wearing any clothes! Don't believe the hype.) But mistakes are not the end of the world and are no excuse for throwing in the towel. Learn from your mistake. Grow from it. Move on.
9. Accept that you will have to make tough decisions. This is a fancy way of saying that sometimes, many times, you will have to tell yourself no. There have been some major things over the last few years that I have had to tell myself no about. It sucked every time. But in the end, it turns out those things weren't right for me at the time anyway. Along the same lines, when I've had an influx of cash, I have paid down my debt instead of treating myself to something extravagant. For example, last December when I received my "extra" paycheck, I opted to pay an extra $1,000 on my debt. Sure, I could've deposited it into savings. Or I could've bought myself some much-needed new clothes. Instead, I put it toward the debt. But doing so put me ahead of schedule.
10. Never forget that you are not alone. You are not. You are not. You are not.
    

August 2010 Update

How crazy is it that it's already August! Is it me or has this year just flown by? And my, oh, my, what a year it's been. Just a year ago I never would have imagined that I'd be thisclose to paying off my debt and living in my own home. Wow...

Anyway, let's get this monthly update off the ground:

The Debt: $1,622.74
The Savings: $5,947.26

The spike in the savings amount is because of money that I'd had parked in checking for a while but finally moved over to savings. I hadn't been counting it as savings since it technically wasn't in a savings account.

You might be asking yourself, "With her savings, why doesn't she just go ahead and pay off her debt?" That's a very good question. In fact, about three days ago, I asked myself the same thing. You know what? I didn't have a good answer. And so I'm paying it off next week. It's scheduled for next week.

And that brings me to this: What should I do with this blog after that? Certainly I'll keep it up. It is my hope that others will stumble upon this blog and realize that if I could do it, they certainly can. Do I post about my savings? I did name it "Saving Veronica," after all. It'll just be a tweak of the meaning from verb to adjective. We'll see.

For now, though, time for bed. I'll check in again soon. :-)

July 2010 Update

Once again I'm posting the monthly update a day early. I'd planned to do July's update tomorrow, but I've got freelance work to do tomorrow night, and that takes precedence. I figured it was better to post a day early than to post a day late. So here I am.

The Debt: $1,975.69
The Savings: $4,790.00

Can we concentrate on that debt total for a moment, please? I owe less than $2,000. Me -- the chick who three years ago owed $20,000. It hasn't been easy, and it darn sure hasn't been fun. But ... wow. I still have work to do, I know, but I'm not going to discount my progress or what it's taken me to get to this point. Nor will I become complacent.

Needless to say, with my mortgage and condo fee, I will not be able to pay the full amount I've been paying toward credit card debt the last few years. But I will pay more than the minimum due every month.

The savings outlook is in decent shape -- better than I expected, really, given all that's gone on in the last month. Yeah, sure, I could pay off my debt with what I have in savings. But I really want to build a big cushion. I'm even going to wait on buying new mattresses until later this year, maybe even until after I get my tax refund next year.

Some freelance jobs will be invoiced this month, so that will bring in more cash. In fact, two of the three freelance jobs I started in June have grown into bigger jobs, so I'll be getting more than I originally thought. What I'm not getting "extra" is a chance to relax. I've been exhausted the last few weeks, and that's not going to change for a few more. But it's all good. Right now, the plan is to put some of that money toward the debt, but a significant portion will go into savings. And I might treat myself and by something pretty to wear.

What a difference a month makes: I post tonight from my new home! I am still in awe. When I go to bed, I sit on my bed and look around in wonder. I am really here. I am so blessed, and so, so thankful.

June 2010 Update

It's June, so you know what that means. Time for the monthly update:

The Debt: $2,650.36
The Savings: $1,966.95

The change in debt is more than $100. Actually, it's a bit more than that. I have a credit with one credit card account to the tune of about $50. It hasn't been posted yet, so I didn't factor it in up there, but it's still good to know.

As for the savings, well ... it has decreased quite a bit since the last update. But as I mentioned a couple of months ago, I haven't updated the amount in the margin because it has been fluctuating so much. Still, last month I had about $15K. Now? Not.

But considering that I bought a home, that I have any savings at all is a blessing. In fact, I have more than what I posted. I had extra left after the closing and then I got a refund on my closing amount. Also, June happens to be a three-paycheck month, so I'll have an "extra" check coming. And down the road there should be other cash infusions, including payments for freelance work and, I hope, my full rental deposit for the place I'm leaving.

So I think I'm in decent shape to start my life as a homeowner. But -- there's always a "but," isn't there? -- I must work to maintain the good habits I've picked up the last few years. I can't afford to become comfortable. I must continue working to knock out that remaining debt, and I have to continue saving. It will be hard, especially since I'm itching to decorate the condo. But that could be a recipe for financial disaster if I'm not careful. A couch here, a cabinet there, and before you know it, I could be in trouble.

I will buy myself a new bed, at least new mattresses. But other things? I want to take my time and buy only things I love, even if it takes a while -- and only when my finances permit.

Have a mentioned lately how grateful I am? Thank you, thank you, thank you!

May 2010 Update

I know, I know. I'm doing this monthly update thing a day early -- again. I'm hoping to get crackin' on packing a few things this weekend, and I also have some freelance work to do. I'm easily distracted these days. I was afraid that if I didn't do it now, I'd forget all about it.

I am adding the savings this time even though in four weeks (four weeks!) I go to close on the condo. That's going to drain the coffers. As for the debt, well, it continues to drop, this month by $734.62. Here we go:

The Debt: $3,360.94
The Savings: $15,964.43

Mind you, that savings amount includes a loan from my retirement fund, as well as a gift from my dad. Still, how sweet does that balance look! And how different it will be come June 1. LOL But it's all for the good -- better property debt than credit card debt, yes?

I'm not updating the savings balance on the list of the good balances because this month's balance is artificially inflated. But starting June 1, we'll be back to our regularly scheduled program.

April 2010 Update

Anyone who also reads veronica's day in the life knows that I'm trying to buy a condo. Well, that's not entirely correct: I have put in an offer on a condo and it was accepted. But I still have to go through the appraisal process (which is making me anxious) and then go to closing. I mention this because my savings is totally up in the air these days. So I'm not updating those numbers. I am, however, updating the debt:

The Debt: $4,095.56

Yeah, yeah ... I know that I had proclaimed that my debt was officially under $4,000. It was. But since then, I have donated some money to a worthy charity. To get the rewards, I used the credit card but haven't paid it off yet. But I will, and soon.

The savings picture will be undergoing changes over the next couple months while I go through this home buying process, so I doubt I update the balances for that anytime soon. Once things stabilize, I'll be back on track.

Also, with the mortgage and condo fee, I'm going to be paying more for living expenses sooner than October 2010, the deadline I'd given myself to pay off the debt. While it will take a bit longer, it will get paid off. Not only will the mortgage and condo fee affect the incoming cash flow, but so will the loan repayment to my 401(k), which will decrease my paycheck. The good thing about borrowing from my retirement is that when I pay it back, I'm actually paying myself back. If necessary -- and if I have enough money leftover -- I may use that to pay off the debt. The interest rate is better and I'm paying myself, not the bank.

By the way, I know I'm a day early with the update, but it's 11:28 p.m. and that balance isn't going to change in the next 32 minutes. ;-)

So ... that's that. Stay tuned. And wish me luck on the appraisal!

March 2010 Update

Let's get this party started:

The Debt: $4,566.35
The Savings: $4,737.14

Notice anything about those numbers up there? You got it: I finally have more in savings than I owe on debt.

How freakin' sweet is that? I am so proud of myself! I thought I'd never see the day. But it hasn't been easy. In fact, when I started -- staring down $20K in debt and scant savings -- it was damn hard. But it's gotten easier: The more I've paid off, the less interest I've had to pay and the quicker I see results. So If you're still struggling with the enormity of your debt balance, hang in there. Stick with the plan and you will see results. It may take some time, but you will get there.

I also received money from my parents for my birthday. I don't want to add that amount to the balance up there because it's to help me with any fees related to the condo purchase. But what they gave me will allow me to continue my debt payment plan without deviation. I'd been thinking about scaling back the payment amount in order to build some extra savings. But now I don't have to do that.

I am grateful.

February 2010 Update

Hello. It's that time again. Let's get to it, shall we?

The Savings: $4,533.13
The Debt: $5,192.94

The change in savings is a healthy $783. In the debt? $562. Not a bad month, if I do say so myself.

Just think: After the next payment, I will owe less than $5,000. Can you believe that?! Me, the chick who owed nearly $20,000 on credit cards not three years ago will, in less than a month, owe less than five grand.

Which brings me to this: I'm thinking about suspending the debt payment plan. Wait -- hear me out. I want to buy a condominium this year. But I need some extra cash. I would suspend the plan only for two or three months. It will throw me off my original 10/10/10 schedule, but ... well, the trade-off is a home of my own. Still, I would hate to deviate from my plan. It's served me well the last couple years. We'll see.

In other news, I recently submitted my invoice for my regular freelance job and I've completed my tax return, so there's some money coming my way. And remember that extra freelance gig I picked up at the end of last year? Well, a different department of the same company e-mailed me today with another offer. The job will eat up a weekend, but it'll be well worth the sacrifice. For one, it's a great company and I hope to continue our relationship. Second? Well, duh! The extra money!

So, that's where we are right now. Not in too bad a place. That light at the end of the tunnel is getting brighter and brighter.

January 2010 Update

Happy New Year! It's always special when the monthly update is also January 1, the start of a new year. This year's January 1 update is even more special, as it is the beginning of the last year of blogging about my credit card debt.

Which brings me to this: What will become of this debt blog after the debt is paid off? I won't take it down. (I could use the reminder of where I've been.) But will I continue to post? By then, I'll be in my new place; maybe I could post about how things are going with that. We'll see.

But let's stop thinking about the future and get to the point of today's post:

The Savings: $3,749.28
The Debt: $5,755.60

The savings is up by $204.26. Historically, I'm doing better than I was in 2008 ($3,643) but not better than I was when 2009 started ($4,811).

The debt is another story altogether. It's down $1,530.69! What a difference a three-paycheck month makes. Obviously, this January 1 balance is much better than those in the past. After all, that's the point of this blog, right? Two years ago, in January 2008, I owed $19,022.04 in credit card debt. Wow -- just typing that figure ... it boggles the mind. It makes me sad to know I got myself that deeply into debt. What the heck was I doing?! But then I'm elated at the progress I've made. In two years, I've paid off more than $13,000. Whoa. Let's focus on that good part, shall we?

Christmas was a good one. My parents gave me gift cards, two of which are bank cards. Those can be used anywhere. I tend to save gift cards until a rainy day. I have to use the bank cards by June or else there's a $2.50 monthly fee, but I'm sure I'll find something to use them on between now and then. But for now? I haven't a clue. More on that later.

Other money matters: I received my paycheck for the freelance job I did back in December. I have some grocery items to buy this weekend at the organic market, so some of the check will go to that, but I also plan to sock some of it away into savings. And then there's the unexpected financial blessing that's due to come later this month. I don't know what I want to use that for, either.

Which brings me to this. I've noticed something about myself and my financial habits over the last 20 years: When I'm doing pretty good with my savings and can afford to spend a little, I get stingy. I question every purchase -- Do I really need this? What if you see something better later? I end up talking myself out of the purchase.

I think it's also because I know how easy it is for me to fall back into my old spending habits. This is not my first rodeo. Back when I was in college, I racked up about $6,000 in credit card debt. A lot of money for a student. It took quite a few years to pay that off, but I did. I still remember the first thing I charged after that. I told myself, "Go ahead. You'll pay it off next month." But then there was something else, and then something else. And now here we are, all these years later.

So that extra $700 or so I'll be getting later this month will likely go into savings. Ditto any IRS refund I get. I've been wanting to build up my savings, especially since I'm going to be shopping for a place this summer. It will be good to have that extra amount in there for incidentals when I move. I will have to pay to get my carpets cleaned when I move later this year. I have to budget for that and for the movers. Plus, I'd really like to get a nice couch and a new mattress set. Neither of those are cheap items. My rent deposit for this place would help toward all that, but deposits are not guaranteed. Even though all my semiannual inspections with the property management company have gone well, I still hesitate to rely on my full $995 being returned. (But believe me: I've saved every copy of my inspection report in case I need backup!)

So that's January 2010. It's going to be a great year. :-)

December 2009 Update

The last update for 2009. Let's get this party started, shall we?

The Savings: $3,545.02
The Debt: $7,286.29

Yeah, I know. The savings went down -- again. But I have a good reason: I had a car repair. And it was better to take the money out of savings than to charge it. I also finally broke down and bought a wireless router. That's just how it works for me now. Still, considering the cost of the auto repair and the router, the decrease isn't all that bad. Certainly not as bad as it could be.

The debt, however, is still enjoying a steady decline. And that was the point of this whole thing, wasn't it? This month it went down over $625. Not too shabby.

This is a loose analogy, but paying off my debt is like playing Sudoku. When you first start the puzzle, it's pretty slow going for a while. You figure out a number here, a number there. You hit a wall occasionally and sometimes you think to yourself that you'll never finish. But eventually you figure out another number. And then, suddenly, as more numbers find their place, it gets easier. Before you know it, everything starts falling into place...

When I first started this journey to pay off my debt, it felt like I would never finish. I owed $21,000 when I started this blog. And that's not even the most I've owed. For a while there, not long after I bought my Honda, I owed almost $30,000.

I have come a long way.

Another noteworthy thing is that my net worth is finally in the black. Of course, you have to factor in my 401(k), but for a long time, even factoring that in, I was in the red because of my debt.

I do have to work on my savings, though. This month finds my savings the lowest it's been since I started this blog. That is not good given what will be on my plate next year.

Still, I am grateful.

November 2009 Update

I can't believe it's already November. It's a wonder we're not all suffering whiplash from how fast time is flyin'. Let's get to the numbers, shall we?

The Debt: $7,913.00
The Savings: $3,966.52

The good news is that my debt balance is below $8,000. That is awesome! (I hope you don't think ill of me for tooting my own horn for a moment.) And this amount even includes today's purchases. But I'll get to that in a few.

The bad news is that this is the fourth consecutive month that my savings has gone down. That is definitely the wrong direction. I am appalled by this. And the thing is, it could get worse before it gets better. For example, when I had my car repair a couple months ago, it was to replace a strut. That repair is usually done in pairs, but I only had one done at the time. I have to get the other one replaced soon.

I don't want to sound like it's all doom and gloom. For example, I'll get my freelance check next week. It is because of this infusion that I went shopping today. I've been pretty depressed about my wardrobe situation lately, so I went shopping today to find some work clothes. I wasn't as successful as I'd have liked, but I did buy a cute casual pullover and a couple basics, including some leather gloves. Also, I recently ordered two pairs of thermal underwear. I charged both purchases, but I've already set up the payment to cover them.

So that's where we are right now. I'm sure I'll check in again soon.

October 2009 Update

Away we go:

The Savings: $3,972.49
The Debt: $8,387.82

When the year first started, I had a goal of having $7,500 in savings by December 31. That just isn't going to happen. But at least the debt is steadily going down.

Speaking of the debt, don't be too impressed by the change since September. The amount posted for September wasn't entirely correct -- $400 hadn't yet been credited. But as I have done since I started the monthly updates, I used the number that was posted at the time of the update.

Sadly, the nearly $375 decrease in the savings is correct. In addition to taking out money for my staycation week with my mom, I also used my savings as a supplement to my paycheck when things got tight. While I am grateful to have savings so that I can do that when necessary, I don't want it to become a habit, and that's what has been happening lately. That must stop.

October is officially a no-spend challenge month. No clothes, books, or music. Any money spent will be on bills, gas, groceries, and rent. I've gotta let the dust settle. The only way to do it will be to take it one day at a time. I may post more this month to vent, but that's what this is all about -- posting during the good and bad times.

September 2009 Update -- Part II

Last night after I posted the monthly update for September, I finally did the math and realized that my savings went down over $800. I freaked. I knew I had the recent car repair, but that was "only" $400. Where was the other $450?

Once I calmed down a little, the fog lifted and I remembered the other things: I treated myself to boots ($208), I paid my personal property tax ($108), I took out $50 in quarters for laundry, and I transferred $30 to cover our bus fare to NYC. With the car repair, that's $796. The rest was to cover a few things here and there, including a few grocery items. (This pay period was pretty tight; most of my check went to my rent).

While I was making this transfer and that transfer, it didn't seem like a lot. But it really added up.

Hopefully I've got things somewhat caught up and can stop doing the savings transfer dance. Even if I haven't, though, I've got to do a better job with budgeting.

Also, the payment on my credit card to cover the car repair has finally been posted. I scheduled the payment from HSBC last Thursday (August 27); the payment wasn't posted on my credit card until yesterday (September 1). But since it takes a day before you can see the completed transaction, it wasn't until today that the credit appeared.

Which brings me to this: I really hate how long it takes HSBC to credit money you deposit into its accounts and how long it takes for them to send money for bills or to transfer to another account. But they very quickly subtract the money coming out the HSBC account. I much prefer ING's Web interface and timing, but HSBC has a slightly higher rate. (Though, really, as pathetic as the savings rates are these days, the difference is negligible.)

Sigh. Payday can't come fast enough.

September 2009 Update

Oy. It ain't pretty.

The Debt: $9,314.57
The Savings: $4,345.41

Those numbers aren't correct, but they reflect what has been posted/paid as of this morning, so they have to go in. What's missing is the $400 I moved from savings to pay for my unexpected car repair last week. Technically, the debt is $8,914.57.

As for the savings ... well, what can I say? I may have to dial back my goal to have $10K in savings by next October. I'm not sure how that will possible. It's disappointing but at least I'm still on track with the debt.

September may be iffy. My mother is coming for a visit in a few weeks. We're going to do a day in NYC, so I'll need money for food and to shop with. The ticket has already been taken care of. We're taking the bus and because I reserved a few weeks in advance, we got an excellent deal: $23 -- for the two of us. Round trip. Gotta love these new bus lines!

Anyway, my mother is a shopper, which means a lot of the activities I have planned for her involve shopping. I am usually good and tend not to overspend in these situations, but it will be hard, especially in NYC.

So that's where we are. Hopefully, the October update will be much improved. By then the $400 will have been credited, and I'll also have paid my monthly payment toward the debt. Also, I have some freelance work. I'm going to try to mail the invoice early enough that I'll get paid by then. In the meantime, I'll check in on my progress as I can.

Happy September, all!