I had to go to Costco today to get a new membership card. It's a bit of a pain to find parking at the shopping center where my Costco is located, so I figured I'd browse for a bit before heading out. And I'm glad I did. There was a deal on VitaMix blenders this weekend. I've wanted one for a long, long time. I've stalked them online for years. A year ago, I would've been forced to forgo the opportunity -- after all, even on sale, these blenders are still quite pricey. But this is one of those times that all those years of hard work were worth it.
So I splurged. I'm debating on whether I'll still take the overnight trip to Richmond in April or scale it back to just a day trip. While I can afford to do both, I'm also seeking balance. So we'll see.
The great thing about the blender is that I'll be able to make more smoothies, and in greater quantities. I have an immersion blender, but after nine years of regular use -- it's not unusual for me to use it five out of seven days -- it's showing its age. Also, I've wanted to start doing green smoothies, and my current cheap-o blender just doesn't cut it (pardon the pun). I am glad to be able to get out of my smoothie rut of mixed berries, OJ, AJ, and honey. The VitaMix will replace both appliances. Bring on the greens!
Saturday, February 5, 2011
Friday, February 4, 2011
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.
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.
Saturday, January 1, 2011
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.
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.
Monday, December 6, 2010
The Fives Have It
Several years ago, a coworker/friend who sat beside me got excited when someone who owed him for lunch got a $5 bill. "This'll go in the money drawer!" he exclaimed. "What are you talking about?" I asked. And then he explained: Every year he picks a denomination to save and every time he gets that bill, it goes in the drawer. Some years it was all ones. Sometimes fives. But whatever he chose, he stuck with it and put it away, no ifs, ands, or buts about it.
I didn't think much about it then, mostly because I needed pretty much every bill I could get my hands on. I had hefty credit card balances and had just bought a new car.
But I never forgot that. And then, when a guy I had kind of started seeing mentioned doing something similar, I decided that maybe I'd give it a shot too.
So late last year I made a box just for this purpose. I designed it with just a slit at the tip to prevent my getting in and out of it easily. And I covered it in pretty wrapping paper -- like a gift. And then came decision time: To save ones or fives? The fives won.
I've done well. Mostly. Around August I started dipping into it, thanks to a pair of tweezers. Five bucks here, five bucks there. Finally, at the end of August, after I finished grabbing $15 for dinner with friends, I told myself, "That's it. No more dipping." And I promised that for the rest of the year, no matter what, I would save every $5 I got.
Since then, the Universe has been having fun with me. I go cash a check for $17 bucks and the bank teller gives me three fives. I get $20 out of the ATM for lunch and what do I get in change after buying said lunch? Two fives. And today, after getting $20 from the ATM to get a card, the clerk gave me three fives. I expected to get one $5 bill, but three?! And I peeked -- the clerk legitimately did not have any 10s in the register. Nope, whatever force is out there has called my bluff and is bound and determined to have me honor my promise.
But it's paid off. At last count, I now have $405, including the three fives from today.
I told a good friend about it a couple of months ago and he decided to try it too, but with $1 bills. Three days ago, he counted: He has 100 bucks.
What I'm getting to is this: Turning it into a game makes it fun. And in the end, no matter how much you end up with, you win. My plan was to stop at the end of the year, but now I'm thinking of waiting until spring, maybe using it for a weekend shopping trip. Any bets on how much I'll have by then?
I didn't think much about it then, mostly because I needed pretty much every bill I could get my hands on. I had hefty credit card balances and had just bought a new car.
But I never forgot that. And then, when a guy I had kind of started seeing mentioned doing something similar, I decided that maybe I'd give it a shot too.
So late last year I made a box just for this purpose. I designed it with just a slit at the tip to prevent my getting in and out of it easily. And I covered it in pretty wrapping paper -- like a gift. And then came decision time: To save ones or fives? The fives won.
I've done well. Mostly. Around August I started dipping into it, thanks to a pair of tweezers. Five bucks here, five bucks there. Finally, at the end of August, after I finished grabbing $15 for dinner with friends, I told myself, "That's it. No more dipping." And I promised that for the rest of the year, no matter what, I would save every $5 I got.
Since then, the Universe has been having fun with me. I go cash a check for $17 bucks and the bank teller gives me three fives. I get $20 out of the ATM for lunch and what do I get in change after buying said lunch? Two fives. And today, after getting $20 from the ATM to get a card, the clerk gave me three fives. I expected to get one $5 bill, but three?! And I peeked -- the clerk legitimately did not have any 10s in the register. Nope, whatever force is out there has called my bluff and is bound and determined to have me honor my promise.
But it's paid off. At last count, I now have $405, including the three fives from today.
I told a good friend about it a couple of months ago and he decided to try it too, but with $1 bills. Three days ago, he counted: He has 100 bucks.
What I'm getting to is this: Turning it into a game makes it fun. And in the end, no matter how much you end up with, you win. My plan was to stop at the end of the year, but now I'm thinking of waiting until spring, maybe using it for a weekend shopping trip. Any bets on how much I'll have by then?
Wednesday, December 1, 2010
December 2010 Progress Report
I seem to have picked up one or two new followers. Hello! And thanks for following my humble blog.
On to the progress report: All is well, I'm happy to say. I had allowed a small balance to carry over to December -- just to have a little activity on the card -- but I paid that off today.
2011 will be the first year in 20 years (or more) that I've started the year off without credit card debt. Allow me to reflect on that for a moment.
* * * * *
OK, I'm back. Anyway, I've been able to maintain debt freedom for four months. I have, unfortunately, been spending quite a bit, and that needs to stop come January. For one thing, I had several physical therapy appointments to help me recover from a neck injury. And in addition to a few purchases -- including my dream Christmas tree -- I'm about to shop for a holiday party I'm hosting later this month. It will be the first party I've thrown on my own, and I want things to be as close to perfect as I can make them. I've got a lot of stuff to get from the grocery store. And I'm serving glogg, so I've got some booze to buy. Thankfully I have only one "real" gift to get my mom, and a small item for my dad (he received his Christmas present back in July). Still, it will be a tight December. Ho, ho, ho.
But in that "tightness" I'm maintaining my savings. In fact, I recently upped my 401(k) contribution at the recommendation of my financial planner. I'm maintaining my monthly deposit to my savings, and in fact will be increasing that as well, at least temporarily. So things are going well.
I also completed another freelance job this week and will be submitting that invoice once I know for sure they're not sending me anything else this year. That's a nice way to end the year.
Have I mentioned lately how grateful I am? 'Cause I am. So very.
But in that "tightness" I'm maintaining my savings. In fact, I recently upped my 401(k) contribution at the recommendation of my financial planner. I'm maintaining my monthly deposit to my savings, and in fact will be increasing that as well, at least temporarily. So things are going well.
I also completed another freelance job this week and will be submitting that invoice once I know for sure they're not sending me anything else this year. That's a nice way to end the year.
Have I mentioned lately how grateful I am? 'Cause I am. So very.
Saturday, November 13, 2010
November 2010 Progress Report
Though I've paid off my debt, my financial health is still very much a work in progress. To chart my evolution I've decided to check in at least once a month with a progress report.
So what's been going on since last month:
I've met with my financial planner a few times. We had our initial session in October, during which he collected all my paperwork -- the mortgage papers, insurance papers, bank statements, payroll statements ... the works. We didn't talk about much during that session, but we had a teleconference almost two weeks later, after he had a chance to analyze everything. We used GoTo Meeting and he was able to show me my spreadsheets. He thinks I'm doing OK but he thinks I can (and should) save more per month than I'm saving. He wants me to save at least another $150 per month.
We met yet again a few days after the teleconference so that he could review in person everything we had talked about and tell me his plan for the next year. I left feeling good about things, and that's how you want to feel after these things.
We have one more meeting this year so that we can redistribute some of my 401(k) investments, and at some point we'll probably talk about my employee benefits. (He's thinking that I would benefit from the high-deductible health plan if I use a health savings account, which my employer will be offering for the first time this coming year.)
Another change is that I've lost my monthly freelance gig. They've decided to cut back and try to do more stuff in-house. To be frank, I debated last year and recently whether I wanted to continue doing it. While I appreciate the extra money, it's not that much, and by the time the taxes come out of it, I have to question whether it's really worth it. So I wasn't too upset about it. Besides, as three separate people reminded me that day, it will give me more time to write. (More on that in the day in the life blog.)
As for the debt, I'm still doing very well at staying debt free. I do have one outstanding balance -- for about $60. It was for about $112, and I was about to pay it all off. But then I remembered that it's good to have some activity on your account to keep banks from slashing your credit limit or canceling your card altogether. So I paid off part and will pay of the rest next month.
But I have to say how relieved I am to still be debt free. I came across this article today on how much debt actually costs thanks to interest. A few years ago -- heck, just one year ago! -- I would've felt such anxiety from reading it. Now it just serves as a nice reminder of where I came from and what not to do again.
So that's how things are these days. See you next month!
So what's been going on since last month:
I've met with my financial planner a few times. We had our initial session in October, during which he collected all my paperwork -- the mortgage papers, insurance papers, bank statements, payroll statements ... the works. We didn't talk about much during that session, but we had a teleconference almost two weeks later, after he had a chance to analyze everything. We used GoTo Meeting and he was able to show me my spreadsheets. He thinks I'm doing OK but he thinks I can (and should) save more per month than I'm saving. He wants me to save at least another $150 per month.
We met yet again a few days after the teleconference so that he could review in person everything we had talked about and tell me his plan for the next year. I left feeling good about things, and that's how you want to feel after these things.
We have one more meeting this year so that we can redistribute some of my 401(k) investments, and at some point we'll probably talk about my employee benefits. (He's thinking that I would benefit from the high-deductible health plan if I use a health savings account, which my employer will be offering for the first time this coming year.)
Another change is that I've lost my monthly freelance gig. They've decided to cut back and try to do more stuff in-house. To be frank, I debated last year and recently whether I wanted to continue doing it. While I appreciate the extra money, it's not that much, and by the time the taxes come out of it, I have to question whether it's really worth it. So I wasn't too upset about it. Besides, as three separate people reminded me that day, it will give me more time to write. (More on that in the day in the life blog.)
As for the debt, I'm still doing very well at staying debt free. I do have one outstanding balance -- for about $60. It was for about $112, and I was about to pay it all off. But then I remembered that it's good to have some activity on your account to keep banks from slashing your credit limit or canceling your card altogether. So I paid off part and will pay of the rest next month.
But I have to say how relieved I am to still be debt free. I came across this article today on how much debt actually costs thanks to interest. A few years ago -- heck, just one year ago! -- I would've felt such anxiety from reading it. Now it just serves as a nice reminder of where I came from and what not to do again.
So that's how things are these days. See you next month!
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