I met with my financial adviser yesterday. I hadn't talked to him since summer, before I received my home buyer credit. Back then I had this notion that by October, I'd have a good $10,000 in the bank -- after buying my couch. So it was humbling when I went in yesterday with my paltry $5,500.
I'm still not sure what happened. Sure, there was the couch. And I paid off the mattresses. There were the unexpected car repairs, from both the accident and the battery problem (which was confused for a starter problem, causing me to spend $$ for two repairs). And I've bought a little of this, a little of that for the condo: good-quality covers for the balcony furniture, a trunk to hold my gardening stuff (and the materials to help weatherproof it), funded my HSA to pay my copays, and so on and so on.
So. Yeah. Not $10,000. $5,500.
But I'm still debt free. And that's a big thing. Mind you, I have used my credit cards, but I pay them off every month.
My planner, Ted, is awesome, though. He didn't balk at the amount or reprimand me for not having what I had thought I'd have. Rather, he reminded me of my accomplishments: I've remained debt free, I opened a Roth IRA and started funding it this year, and I've maintained my savings. He thinks I'm in good shape.
In fact, he said, he wants me to loosen up and stop freaking out every time I have to spend a significant amount. He's concerned about my psychological and emotional relationship with money, the anxiety I feel when it comes to letting the money go. For example, my computer is old and needs to be replaced: the disk drive doesn't work, I can't use it without the power cord because the battery is so old, and it picks and chooses when I can use the "P" key. Likewise, my cellphone is about 8 years old. Parts are actually starting to fall off of it, and it no longer allows me to make calls when I go visit my parents. But I keep delaying these purchases.
We talked about that at some length, and he was very patient. His worry is that by my putting off a few occasional purchases out of fear of spending the money, I will be hit down the road with having to spend a much greater amount of money when I have to replace a lot of things. Go ahead and take care of these things incrementally, when I can and not when I have to. Take care of the computer and cellphone now, he said, and next fall I can focus on getting more furniture for my place. When I grimaced at his advice to get the computer now, he laughed. "Most people would be thrilled for their financial adviser to tell them to go buy a new computer." He told me I can afford it, and it's also about my quality of life.
"You're in a good position to do it," he said. I told him that I didn't feel like I was, that the market was doing crazy things and that it didn't seem like anything was changing, no matter what I did or how much I saved. He basically told me to chill. The way we've structured my investments benefits from volatility, so when things start to level off -- be it 18 months from now or three years from now -- the balances are going to take off. "You'll be amazed. We're going to look back and you're going to say, 'Remember when I was complaining about my balances!'"
In the end, he said, I'm in good shape. I need to relax. I need to stop rushing things. "It's like the story of the tortoise and the hare. Slow and steady wins the race."
Friday, October 21, 2011
Thursday, September 8, 2011
Funk.
This is me attempting to pound out an update through my funk. Let's get through this, shall we?
Last week sucked. There's really no other way to say it. It started last Monday when my car was slow to start. It finally cooperated and I made it to my chiropractor. And then it started fine after my appointment. I stopped home before heading to work and when I got back in the car, I got that dreaded clicking sound that indicates a bad battery. I called my father just to get his input (he knows car stuff), and he agreed.
Because my Triple A battery was still under warranty, I called 'em and told them the deal. In their defense, they sent someone very quickly. He checked my battery and pronounced it A-OK. What it probably was, he said, was my starter. So off I went to an auto repair shop down the street. I explained the situation to them, including about the battery. $285 later, I had a new starter.
Come Thursday, I headed out for the gym only to discover that my car had the same problem. I went on to the gym, but after about 10 minutes on the elliptical, I thought better of it and left. I showered, dressed, and dropped my car off at the dealership. Turns out it was the battery.
Yeah.
So ... another $160 later, I had a new battery. And bitterness.
Friday I went to my chiro's and on my way back to the car ...
Wait. What's that? No ... what is that? Awww, man! You have got to be kidding me! Yep. There's a dent. And paint scrapes. All along the driver's side rear door.
When I first arrived at the chiro's, I parked in the middle space of three empty spots. When I left, the spot on the driver's side was still empty. I'm guessing someone pulled in, hit the [compound expletive] outta my car, panicked, and moved to another spot.
I called my insurance company (yay for insurance!) and they started processing my claim immediately. I dropped off my car on Tuesday and picked up my rental.
I had some scratches on the front fender (courtesy another bad parker), and wanted to get those taken care of, so I'm paying to have those done in addition to getting the accident damage fixed. It is a greatly unexpected expense -- much like last week's auto repair -- but ... what am I gonna do? I did debate getting the scratches done, but I figured it like this: If I had waited, I would be paying for the scratches and the cost of a rental car, when I could take care of it now while the rental is being paid by insurance. And I won't get twitchy every time I see them. Win-win.
Except the whole unexpected expense part. Between last week's auto repairs and the costs related to the accident and scratches, I'm looking at $1,000, plus or minus a few bucks. Yeah. [Supercompound expletive.]
In other news, I've finally ordered my couch. I've paid for half and will pay the other half when it's delivered. I'll also pay to have hauled away this old piece of crap I'm sitting on while I type this. I will also buy paint and finally get this living room into some kind of shape. Right now it's a hodgepodge of crap. It's not a style one aspires to have.
Added to all this, my dear friend's wedding is this weekend, and I couldn't go because I couldn't afford it. I feel very small. I know it was the financially responsible thing, but that doesn't make me feel better. Rather, it makes me feel worse. 44 years old and I can't go to my best friend's wedding. I'm like a fucking child.
So. Yeah. I'm in a funk.
Last week sucked. There's really no other way to say it. It started last Monday when my car was slow to start. It finally cooperated and I made it to my chiropractor. And then it started fine after my appointment. I stopped home before heading to work and when I got back in the car, I got that dreaded clicking sound that indicates a bad battery. I called my father just to get his input (he knows car stuff), and he agreed.
Because my Triple A battery was still under warranty, I called 'em and told them the deal. In their defense, they sent someone very quickly. He checked my battery and pronounced it A-OK. What it probably was, he said, was my starter. So off I went to an auto repair shop down the street. I explained the situation to them, including about the battery. $285 later, I had a new starter.
Come Thursday, I headed out for the gym only to discover that my car had the same problem. I went on to the gym, but after about 10 minutes on the elliptical, I thought better of it and left. I showered, dressed, and dropped my car off at the dealership. Turns out it was the battery.
Yeah.
So ... another $160 later, I had a new battery. And bitterness.
Friday I went to my chiro's and on my way back to the car ...
Wait. What's that? No ... what is that? Awww, man! You have got to be kidding me! Yep. There's a dent. And paint scrapes. All along the driver's side rear door.
When I first arrived at the chiro's, I parked in the middle space of three empty spots. When I left, the spot on the driver's side was still empty. I'm guessing someone pulled in, hit the [compound expletive] outta my car, panicked, and moved to another spot.
I called my insurance company (yay for insurance!) and they started processing my claim immediately. I dropped off my car on Tuesday and picked up my rental.
I had some scratches on the front fender (courtesy another bad parker), and wanted to get those taken care of, so I'm paying to have those done in addition to getting the accident damage fixed. It is a greatly unexpected expense -- much like last week's auto repair -- but ... what am I gonna do? I did debate getting the scratches done, but I figured it like this: If I had waited, I would be paying for the scratches and the cost of a rental car, when I could take care of it now while the rental is being paid by insurance. And I won't get twitchy every time I see them. Win-win.
Except the whole unexpected expense part. Between last week's auto repairs and the costs related to the accident and scratches, I'm looking at $1,000, plus or minus a few bucks. Yeah. [Supercompound expletive.]
In other news, I've finally ordered my couch. I've paid for half and will pay the other half when it's delivered. I'll also pay to have hauled away this old piece of crap I'm sitting on while I type this. I will also buy paint and finally get this living room into some kind of shape. Right now it's a hodgepodge of crap. It's not a style one aspires to have.
Added to all this, my dear friend's wedding is this weekend, and I couldn't go because I couldn't afford it. I feel very small. I know it was the financially responsible thing, but that doesn't make me feel better. Rather, it makes me feel worse. 44 years old and I can't go to my best friend's wedding. I'm like a fucking child.
So. Yeah. I'm in a funk.
Friday, July 29, 2011
Back to Square One
Guess who finally received her home buyer credit? Yep, this lady right here! I checked my bank balance this morning and there it was in my account. With interest. I literally jumped for joy.
The buzz didn't last long, however. Before I did anything else, I paid off what was due on my mattresses. And then I paid off my AmEx, which was creeping up, thanks to the fine offerings by G*lt Group. And I splurged on a dress -- a hot dress -- from Anthro. If you saw this dress, you'd understand why it had to be purchased.
I'm still paying for health stuff. I owed a pretty penny on my epidural injections to cover what remained on my insurance deductible. There wasn't enough in the HSA to cover it, so it had to come out of pocket last week. And then there are the copayments for my chiropractic visits. Again, I know I'll get reimbursed for the health expenses at the end of the year, but right now it's frustrating.
And I had to write a check for something else -- something I'm not ready to mention here. It's a good thing, if anxiety producing, but it cost $200 that I hadn't planned on spending.
So why the title "Back to Square One"? Because I'm back to being debt free, baby! How phenomenal is this? Here's some perspective for you:
On August 1, 2009, I owed $9,659.49. I had savings (about $5,100), but I owed $9,600. And now? About 50 bucks. And about $9,800 in savings. What a difference two years make.
I do still have to buy a couch, so that savings balance won't stay that high. Otherwise, I'm going to work to keep my spending to a minimum. I'm in good shape and it feels good.
The buzz didn't last long, however. Before I did anything else, I paid off what was due on my mattresses. And then I paid off my AmEx, which was creeping up, thanks to the fine offerings by G*lt Group. And I splurged on a dress -- a hot dress -- from Anthro. If you saw this dress, you'd understand why it had to be purchased.
I'm still paying for health stuff. I owed a pretty penny on my epidural injections to cover what remained on my insurance deductible. There wasn't enough in the HSA to cover it, so it had to come out of pocket last week. And then there are the copayments for my chiropractic visits. Again, I know I'll get reimbursed for the health expenses at the end of the year, but right now it's frustrating.
And I had to write a check for something else -- something I'm not ready to mention here. It's a good thing, if anxiety producing, but it cost $200 that I hadn't planned on spending.
So why the title "Back to Square One"? Because I'm back to being debt free, baby! How phenomenal is this? Here's some perspective for you:
On August 1, 2009, I owed $9,659.49. I had savings (about $5,100), but I owed $9,600. And now? About 50 bucks. And about $9,800 in savings. What a difference two years make.
I do still have to buy a couch, so that savings balance won't stay that high. Otherwise, I'm going to work to keep my spending to a minimum. I'm in good shape and it feels good.
Friday, July 1, 2011
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.
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.
Monday, May 23, 2011
Dirty
Wow. It's been a while, hasn't it?
Before I get caught up, though, I want to thank Monia at Losing It All for her sweet e-mail asking if I was OK. That gesture meant a lot.
So, where was I? Right ... catching up on what I've been doing the last month and a half. The short answer is that I haven't been writing, not the blogs and not even my journal. I'm not sure why. Sometimes, I guess, I just can't put into words all that I'm thinking and feeling. It all gets jumbled up.
If I had to put my finger on it, I'd say that part of the reason I haven't written here is that I feel anxious about things. It started when I bought my mattresses. Yeah, that's right: I finally bought mattresses. They're awesome, but I did spend more than I had planned. And the purchase was not without incident. (Put it this way, I doubt very seriously that I'll buy mattresses from Sleepy's ever again. The salesman tried to cheat me, and when I realized the error, the manager was douchey.) So I was left feeling annoyed about this sizable purchase, which, by the way, I charged.
And there it is. The crux of the matter: I charged the mattresses. Do I have the money to pay off the balance? Yes, I do. But I haven't received my home buyer credit yet, and I don't want to eat into my savings cushion. So I have this credit card balance and it makes me feel dirty. So much so that I didn't want to admit it here.
The plan, of course, is to pay it all off when I get the credit. Until then, I'm paying a decent amount every month.
I think the source of my anxiety is that I'm afraid of falling back into old habits, that the $1,800 will become $20,000. Anyone who has had credit card debt knows how quickly it adds up. Plus, I feel like a failure for using a credit card after having paid them all off.
That's ridiculous. I mean, the point is to be able to use credit wisely. That's what I'm trying to do. For example, I have an AmEx card that I use for the annual cash-back reward. But every time I use it -- even though I pay it off immediately -- I feel anxious.
What I'm trying to say is that being in debt doesn't end with that last payment. No, it's a process. It's a way of life, and I'm having a tough time with it.
But that's all the more reason to keep writing here. Though I'm debt-free on paper, mentally, I'm in hock up to my eyeballs. Now it's time to pay that off.
Before I get caught up, though, I want to thank Monia at Losing It All for her sweet e-mail asking if I was OK. That gesture meant a lot.
So, where was I? Right ... catching up on what I've been doing the last month and a half. The short answer is that I haven't been writing, not the blogs and not even my journal. I'm not sure why. Sometimes, I guess, I just can't put into words all that I'm thinking and feeling. It all gets jumbled up.
If I had to put my finger on it, I'd say that part of the reason I haven't written here is that I feel anxious about things. It started when I bought my mattresses. Yeah, that's right: I finally bought mattresses. They're awesome, but I did spend more than I had planned. And the purchase was not without incident. (Put it this way, I doubt very seriously that I'll buy mattresses from Sleepy's ever again. The salesman tried to cheat me, and when I realized the error, the manager was douchey.) So I was left feeling annoyed about this sizable purchase, which, by the way, I charged.
And there it is. The crux of the matter: I charged the mattresses. Do I have the money to pay off the balance? Yes, I do. But I haven't received my home buyer credit yet, and I don't want to eat into my savings cushion. So I have this credit card balance and it makes me feel dirty. So much so that I didn't want to admit it here.
The plan, of course, is to pay it all off when I get the credit. Until then, I'm paying a decent amount every month.
I think the source of my anxiety is that I'm afraid of falling back into old habits, that the $1,800 will become $20,000. Anyone who has had credit card debt knows how quickly it adds up. Plus, I feel like a failure for using a credit card after having paid them all off.
That's ridiculous. I mean, the point is to be able to use credit wisely. That's what I'm trying to do. For example, I have an AmEx card that I use for the annual cash-back reward. But every time I use it -- even though I pay it off immediately -- I feel anxious.
What I'm trying to say is that being in debt doesn't end with that last payment. No, it's a process. It's a way of life, and I'm having a tough time with it.
But that's all the more reason to keep writing here. Though I'm debt-free on paper, mentally, I'm in hock up to my eyeballs. Now it's time to pay that off.
Friday, April 1, 2011
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. :-)
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. :-)
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