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."
Showing posts with label Challenges. Show all posts
Showing posts with label Challenges. Show all posts
Friday, October 21, 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.
Wednesday, August 18, 2010
200.1
I was ineloquent in my last post. What I meant to say is that since becoming debt free, I've been thinking and behaving from a place of lack rather than a place of abundance. This is the wrong mindset and I am working to improve my thinking. To help me along, I e-mailed a financial planner today to see about setting up an initial consultation. It'll help to have an objective party provide some guidance ... and maybe give me permission to loosen up a bit. :-)
Monday, August 16, 2010
The 200th Post
Yep, still debt free. But you know what? I'm still living like I did while I was deep in debt.
I'd planned to treat myself to a much-needed massage after I moved. Didn't do it; didn't want to spend the money. I've wanted to treat myself to a getaway. Haven't planned anything; afraid to spend the money. I desperately need to replace my old mattresses. Haven't done it; haven't wanted to ... well you get the idea. I haven't even had the new prescription put into my eyeglasses yet.
This is not acceptable. The point of getting out of debt and increasing my savings was so that I could live my best life. I had to sacrifice a lot and learn some new habits. Turns out I learned those habits so well that I can't break myself out of them. I'm not saying I should go crazy and throw responsibility out the door, but when I start second-guessing small purchases -- like a frappe, for crying out loud -- something is wrong.
I'm afraid of that slippery slope. That it'll be a little here, a little there, and before you know it, all my hard work was for naught. But life is about balance, right? Seems I've swung too far the opposite way.
How am I going to fix this? I don't know yet. I've only been debt free for a week. Who knows? I could be handling this the right way. Maybe it requires small steps...
... and maybe it's time I called a professional. My employer covers the cost of one visit with a financial planner. I've met the guy at a few of the talks he's given at our company. He's a nice guy. In fact, one of my friends uses him and likes him. We'll see.
I'd planned to treat myself to a much-needed massage after I moved. Didn't do it; didn't want to spend the money. I've wanted to treat myself to a getaway. Haven't planned anything; afraid to spend the money. I desperately need to replace my old mattresses. Haven't done it; haven't wanted to ... well you get the idea. I haven't even had the new prescription put into my eyeglasses yet.
This is not acceptable. The point of getting out of debt and increasing my savings was so that I could live my best life. I had to sacrifice a lot and learn some new habits. Turns out I learned those habits so well that I can't break myself out of them. I'm not saying I should go crazy and throw responsibility out the door, but when I start second-guessing small purchases -- like a frappe, for crying out loud -- something is wrong.
I'm afraid of that slippery slope. That it'll be a little here, a little there, and before you know it, all my hard work was for naught. But life is about balance, right? Seems I've swung too far the opposite way.
How am I going to fix this? I don't know yet. I've only been debt free for a week. Who knows? I could be handling this the right way. Maybe it requires small steps...
... and maybe it's time I called a professional. My employer covers the cost of one visit with a financial planner. I've met the guy at a few of the talks he's given at our company. He's a nice guy. In fact, one of my friends uses him and likes him. We'll see.
Friday, July 9, 2010
Cutting the Cord
After I closed on my place, I realized that I had a larger cushion than I had expected. This, of course, is a good thing -- a great thing. It has come in handy in getting my place together. I've used it for home-related things, bills from the old place, and the like. But the party is over.
It's time to cut the cord.
Mind you, the money is still going to be there. But I'm putting away the card that accesses that old account and am flying solo on the everyday account. When I made the decision to buy a place, I looked long and hard at the budget and discovered that though it might be tight, I would be able to do it. And do it I shall.
Things are going well. I've decided to put a third of every freelance check toward the remaining credit card debt. This will be in addition to the regular payments I'll be making every month -- all of which will be more than the minimum due. I just want to knock it out, you know? And the sooner I get it done, the better.
I haven't heard anything about my rental deposit for the old place, but I'm not worried. My feeling is that no news is good news. Had something been wrong with how I left things, they would not have hesitated in letting me know. What else is coming? Well, my freelance job for the Big Nonprofit isn't done, so it hasn't been billed yet. (I'm supposed to be getting at least one more statement to edit before I'm done and can bill.) I have an invoice pending with Regular Freelance Gig, and that check should come and be deposited by the end of the month. And the Writing Gig has already paid me for last month's work; I've directed a third of that payment toward the credit card bill.
And though this isn't entirely related, I finally took care of my oil change and got new brake pads for my car. So the car is in good shape -- and all for less than $200, thanks to the new auto shop I've been going to.
So things are in good shape, I'm happy to report. I'm so, so happy to report. :-)
It's time to cut the cord.
Mind you, the money is still going to be there. But I'm putting away the card that accesses that old account and am flying solo on the everyday account. When I made the decision to buy a place, I looked long and hard at the budget and discovered that though it might be tight, I would be able to do it. And do it I shall.
Things are going well. I've decided to put a third of every freelance check toward the remaining credit card debt. This will be in addition to the regular payments I'll be making every month -- all of which will be more than the minimum due. I just want to knock it out, you know? And the sooner I get it done, the better.
I haven't heard anything about my rental deposit for the old place, but I'm not worried. My feeling is that no news is good news. Had something been wrong with how I left things, they would not have hesitated in letting me know. What else is coming? Well, my freelance job for the Big Nonprofit isn't done, so it hasn't been billed yet. (I'm supposed to be getting at least one more statement to edit before I'm done and can bill.) I have an invoice pending with Regular Freelance Gig, and that check should come and be deposited by the end of the month. And the Writing Gig has already paid me for last month's work; I've directed a third of that payment toward the credit card bill.
And though this isn't entirely related, I finally took care of my oil change and got new brake pads for my car. So the car is in good shape -- and all for less than $200, thanks to the new auto shop I've been going to.
So things are in good shape, I'm happy to report. I'm so, so happy to report. :-)
Monday, May 31, 2010
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!
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!
Saturday, January 23, 2010
New Year Recap
It hasn't been quite the start to the year that I expected, but things are OK. Mostly. ;-)
That said, there's a lot of room for improvement. I haven't done a financial fast, though it's still something I'm thinking about for down the road. I had a guest last weekend, and I like being a good host. So I bought a few things for brunch Sunday. And we went shopping that Saturday and I found a cute pair of cropped pants at the Neiman's outlet that fit off the rack. And a couple weeks ago I ordered a tuxedo shirt online that, unfortunately, had to be returned. (Sometimes being tall sucks. Everything is always cut too short.) I ended up ordering a plain fitted oxford from JCrew, which carries some items in tall sizes.
Which brings me to this: I'm starting to accept that I have a custom-fit body. Sadly, I have an off-the-rack budget. What I will have to do is buy quality things and, if necessary, have them altered to fit. But because I have an off-the-rack budget, everything I buy that needs to be altered has to be something I love.
In other news, I've called an agent to help with the condo search. I'm not sure I'm going to use her, though, because her reaction to my salary was ... awkward. I know I'm not in the market for a perfect place, but I can't believe there isn't something out there in my price range. Oh well. Anyway, next up is a call to the bank to get preapproved and see what I'm working with. Send good wishes.
See you Feb. 1 for the monthly update. :-)
That said, there's a lot of room for improvement. I haven't done a financial fast, though it's still something I'm thinking about for down the road. I had a guest last weekend, and I like being a good host. So I bought a few things for brunch Sunday. And we went shopping that Saturday and I found a cute pair of cropped pants at the Neiman's outlet that fit off the rack. And a couple weeks ago I ordered a tuxedo shirt online that, unfortunately, had to be returned. (Sometimes being tall sucks. Everything is always cut too short.) I ended up ordering a plain fitted oxford from JCrew, which carries some items in tall sizes.
Which brings me to this: I'm starting to accept that I have a custom-fit body. Sadly, I have an off-the-rack budget. What I will have to do is buy quality things and, if necessary, have them altered to fit. But because I have an off-the-rack budget, everything I buy that needs to be altered has to be something I love.
In other news, I've called an agent to help with the condo search. I'm not sure I'm going to use her, though, because her reaction to my salary was ... awkward. I know I'm not in the market for a perfect place, but I can't believe there isn't something out there in my price range. Oh well. Anyway, next up is a call to the bank to get preapproved and see what I'm working with. Send good wishes.
See you Feb. 1 for the monthly update. :-)
Sunday, October 4, 2009
Well, That Was Quick
October was supposed to be a challenge month -- no clothes, books, or music. Three days into it, I downloaded a song on iTunes and ordered two bras, and today I bought a CD at Goodwill.
I'm trying not to beat myself up too much. The bras were necessary -- I am down to one black one. I lost my flesh-toned bra during my vacation (how the heck does one lose a bra in an apartment?!) and have since been unable to wear any white shirts. So I ordered a white one that I will dye to match me (like I did with the one I lost), as well as a black backup bra.
As for the music, the iTunes song cost 99 cents, and the CD -- one I've wanted for about eight years -- was only 3 bucks at Goodwill. (Can we say that the CD was my treat for taking in some donations?)
No items were charged in the breaking of this challenge.
I'm trying not to beat myself up too much. The bras were necessary -- I am down to one black one. I lost my flesh-toned bra during my vacation (how the heck does one lose a bra in an apartment?!) and have since been unable to wear any white shirts. So I ordered a white one that I will dye to match me (like I did with the one I lost), as well as a black backup bra.
As for the music, the iTunes song cost 99 cents, and the CD -- one I've wanted for about eight years -- was only 3 bucks at Goodwill. (Can we say that the CD was my treat for taking in some donations?)
No items were charged in the breaking of this challenge.
Saturday, September 26, 2009
Playtime Is Over
When I started blogging my debt in April 2007, I did it to give the monster a face. I figured that exposing myself would force me to be accountable. And it's worked. However, this year has found me basically on autopilot. Sure, I've been paying the required amount to be debt free by my original goal of December 2010, but since then, I've decided on October 10, 2010, to be The Big Day. Unfortunately, I haven't put forth the extra effort to make that revised date happen.
Added to that, my savings has taken one hit after another. Sometimes it's been for necessities like auto repair, personal property taxes, medical care, and the like. But I've also used savings for things like a new TV and some spiffy black boots.
Also, I just had my mother up for a week. We had fun, and she helped with a lot of stuff while she was here. But I still withdrew about $250 before she arrived to pay for a variety of things, including groceries in preparation of her arrival. (She eats very Southern, while I tend toward lighter fare when I'm alone. But it was vacation, so...) I'm sure that when I do the monthly update for October I'll fall out my chair from shock.
It's going to take a miracle for me to reach my $10K savings goal by 10/10/10. (Really -- a miracle.) At the rate I'm going, I'll be lucky to meet my debt freedom goal by then.
I have to get serious about this whole thing again. To get back on track, I'm declaring October a no-spend month. My goal is to go through October without spending any money on anything frivolous (for me, that usually includes clothes and books). I haven't done that in a while, and I think I've suffered for it. And what better time to do it than a year before my declared debt-free date?
I'm not saying it's going to be easy. I know it won't be. But a girl's gotta do what a girl's gotta do. Wish me luck.
Added to that, my savings has taken one hit after another. Sometimes it's been for necessities like auto repair, personal property taxes, medical care, and the like. But I've also used savings for things like a new TV and some spiffy black boots.
Also, I just had my mother up for a week. We had fun, and she helped with a lot of stuff while she was here. But I still withdrew about $250 before she arrived to pay for a variety of things, including groceries in preparation of her arrival. (She eats very Southern, while I tend toward lighter fare when I'm alone. But it was vacation, so...) I'm sure that when I do the monthly update for October I'll fall out my chair from shock.
It's going to take a miracle for me to reach my $10K savings goal by 10/10/10. (Really -- a miracle.) At the rate I'm going, I'll be lucky to meet my debt freedom goal by then.
I have to get serious about this whole thing again. To get back on track, I'm declaring October a no-spend month. My goal is to go through October without spending any money on anything frivolous (for me, that usually includes clothes and books). I haven't done that in a while, and I think I've suffered for it. And what better time to do it than a year before my declared debt-free date?
I'm not saying it's going to be easy. I know it won't be. But a girl's gotta do what a girl's gotta do. Wish me luck.
Sunday, September 6, 2009
Whew!
I'd forgotten that when our payday falls near a Monday holiday, our checks get deposited early. Talk about a pleasant surprise when I checked my account this morning. Whew! I had 23 cents in my wallet and about 13 bucks in my checking account. To say that things were tight is an understatement.
I went grocery shopping and I bought a few things from DHC that I've needed. (I have sensitivity issues so I have to be very careful with bath soaps. DHC's white soap and body shampoo are both on my Top 10 list of body products.) I've got food in the fridge for dinner and lunch, so I'm set for a while. I have a haircut later this month. Granted, while it won't be as outrageously expensive as last year's haircut was, it's not going to be free, either, so I've gotta keep some money set aside for that since it's outside the usual monthly expenses. And of course there's the visit with my mom coming up. It's going to be a busy month, financially speaking. I've gotta get through it the best way I can.
I went grocery shopping and I bought a few things from DHC that I've needed. (I have sensitivity issues so I have to be very careful with bath soaps. DHC's white soap and body shampoo are both on my Top 10 list of body products.) I've got food in the fridge for dinner and lunch, so I'm set for a while. I have a haircut later this month. Granted, while it won't be as outrageously expensive as last year's haircut was, it's not going to be free, either, so I've gotta keep some money set aside for that since it's outside the usual monthly expenses. And of course there's the visit with my mom coming up. It's going to be a busy month, financially speaking. I've gotta get through it the best way I can.
Thursday, August 27, 2009
Why I Save
This morning before going into work I decided to get my oil changed. (You can already tell where this is going, can't you?) I had a coupon for service -- oil change, multipoint inspection, tire rotation.
Alas, during the multipoint inspection, they discovered a problem. Nothing urgent, but it was something the repair dude said I should get taken care of in the next month or so. I went ahead and had it done. I'm driving to my hometown in a few weeks, and when my mother comes back with me, I'll be driving hither and yon to entertain her. I felt it was in my best interest to get the car fixed now and not worry about it later. Besides, it's been a great car. I haven't had many repair issues with it.
Mind you, I was not thrilled to go from what was a $45 job to a $375 job. Before I picked up the car and paid for it, I scheduled the bill payment for the credit card I was going to use. So while the savings balance has taken an unexpected hit this month, I am still on schedule with the debt payment.
This is why I work so hard on my savings. Sure, I could suspend my savings deposits and put that extra toward the debt, but then when stuff like this comes up, I wouldn't have this cushion that allows me to take care of these things without incurring more debt.
There is a method to my madness after all. :-)
P.S. I also bought myself a little treat today. A dress from J.Peterman. Their stuff is always so beautifully made and so distinctive. I've never bought anything from them that I didn't end up loving, and I'm sure this dress won't be an exception. That it was drastically reduced was icing on the cake. And yeah, it's paid for. Rock on.
Alas, during the multipoint inspection, they discovered a problem. Nothing urgent, but it was something the repair dude said I should get taken care of in the next month or so. I went ahead and had it done. I'm driving to my hometown in a few weeks, and when my mother comes back with me, I'll be driving hither and yon to entertain her. I felt it was in my best interest to get the car fixed now and not worry about it later. Besides, it's been a great car. I haven't had many repair issues with it.
Mind you, I was not thrilled to go from what was a $45 job to a $375 job. Before I picked up the car and paid for it, I scheduled the bill payment for the credit card I was going to use. So while the savings balance has taken an unexpected hit this month, I am still on schedule with the debt payment.
This is why I work so hard on my savings. Sure, I could suspend my savings deposits and put that extra toward the debt, but then when stuff like this comes up, I wouldn't have this cushion that allows me to take care of these things without incurring more debt.
There is a method to my madness after all. :-)
P.S. I also bought myself a little treat today. A dress from J.Peterman. Their stuff is always so beautifully made and so distinctive. I've never bought anything from them that I didn't end up loving, and I'm sure this dress won't be an exception. That it was drastically reduced was icing on the cake. And yeah, it's paid for. Rock on.
Friday, July 3, 2009
Making Do
This is a rare double post. Because it deals with changes I believe are going to take place in my life (or are indeed already taking place behind the scenes, unbeknown to me) and how my financial situation is somehow involved, I'm posting this in both my Veronica's Day in the Life blog and here in my debt blog.
A few years ago, I signed up for a pottery class. I loved the class. I loved how present in the moment you have to be in order to center that ball of clay on the wheel. I loved the feel of the moist clay spinning in my hands. While I had a long way to go, one would say I had potential to be a decent potter.
I did it for a year and half. I even threw in some yoga classes here and there, too. Every weekend was filled with pursuits to nurture my spirit, and I loved every minute of it.
But then one day I realized I owed almost $24,000. There was my car note and my ever-increasing credit card debt, the latter of which was being increased every time I registered for another pottery or yoga class.
So I did the responsible thing and gave myself an adult time-out. I decided to stop all classes until after my car was paid off. And let me tell you: It hurt that first weekend I didn't have anywhere to go.
But I stuck it out and paid off my car. And that felt so good that I decided to work on my credit cards, all $20,000 worth. (Talk about a humbling experience. Realizing I owed that much on credit cards made me sick to my stomach. And when I think now about what I could've done with that money -- things like grad school tuition, down payment on a condo, trips to Europe -- well, that still makes me sick.)
The most important thing, though, was this: Every time I pondered what I should do with my life, a little voice would say, "Pay off your debt and then we'll talk." And sometimes that voice wasn't so little. Sometimes it screamed.
So that's what I've been doing: following the direction of that voice and paying off my debt. Sometimes I have to risk being thought of as The Cheap Friend. I suffer through the winter months in a drafty apartment, turning on my heat only when it physically hurts not to, to keep my costs down. I turn down invitations to go placesI can't afford to go to. A former stylista, I now make do with clothes that are several years old. Most of my furnishings are extremely old or secondhand, and the rest came from Ikea. (I'm not knocking Ikea, but I don't think anyone would classify that store as a purveyor of fine, high-quality furnishings. The assembly instructions don't even have words!)
I feel like a recent college graduate just starting out, not an adult.
I'm not unhappy per se, but I do feel stuck. I want to be able to do things that truly make me happy. Like pursue pottery and yoga. Travel. Allow myself the freedom to explore what I want to do with my life without feeling trapped by my financial circumstances. Instead, as a result of years of irresponsible financial behavior, I am forced to make do not just with my old clothes but with my life.
Change is coming, though. And though I mentioned above that it's taking place behind the scenes, one could argue that I'm manifesting it center stage in my diligence to gain control of my finances, that my sacrifices will not be for nothing, and that when all is said and done, it will have been worth it.
We shall see.
A few years ago, I signed up for a pottery class. I loved the class. I loved how present in the moment you have to be in order to center that ball of clay on the wheel. I loved the feel of the moist clay spinning in my hands. While I had a long way to go, one would say I had potential to be a decent potter.
I did it for a year and half. I even threw in some yoga classes here and there, too. Every weekend was filled with pursuits to nurture my spirit, and I loved every minute of it.
But then one day I realized I owed almost $24,000. There was my car note and my ever-increasing credit card debt, the latter of which was being increased every time I registered for another pottery or yoga class.
So I did the responsible thing and gave myself an adult time-out. I decided to stop all classes until after my car was paid off. And let me tell you: It hurt that first weekend I didn't have anywhere to go.
But I stuck it out and paid off my car. And that felt so good that I decided to work on my credit cards, all $20,000 worth. (Talk about a humbling experience. Realizing I owed that much on credit cards made me sick to my stomach. And when I think now about what I could've done with that money -- things like grad school tuition, down payment on a condo, trips to Europe -- well, that still makes me sick.)
The most important thing, though, was this: Every time I pondered what I should do with my life, a little voice would say, "Pay off your debt and then we'll talk." And sometimes that voice wasn't so little. Sometimes it screamed.
So that's what I've been doing: following the direction of that voice and paying off my debt. Sometimes I have to risk being thought of as The Cheap Friend. I suffer through the winter months in a drafty apartment, turning on my heat only when it physically hurts not to, to keep my costs down. I turn down invitations to go placesI can't afford to go to. A former stylista, I now make do with clothes that are several years old. Most of my furnishings are extremely old or secondhand, and the rest came from Ikea. (I'm not knocking Ikea, but I don't think anyone would classify that store as a purveyor of fine, high-quality furnishings. The assembly instructions don't even have words!)
I feel like a recent college graduate just starting out, not an adult.
I'm not unhappy per se, but I do feel stuck. I want to be able to do things that truly make me happy. Like pursue pottery and yoga. Travel. Allow myself the freedom to explore what I want to do with my life without feeling trapped by my financial circumstances. Instead, as a result of years of irresponsible financial behavior, I am forced to make do not just with my old clothes but with my life.
Change is coming, though. And though I mentioned above that it's taking place behind the scenes, one could argue that I'm manifesting it center stage in my diligence to gain control of my finances, that my sacrifices will not be for nothing, and that when all is said and done, it will have been worth it.
We shall see.
Wednesday, July 1, 2009
July 2009 Update
This has been a better month. Here we go:
The Debt: $9,923
The Savings: $5,385
The debt has gone down nearly $550, and the savings finally swung in the right direction -- by over 700 bucks. I've still got a lot to consider, though. For one, my rent is about to go up. In the past, I've been able to offset my rent increase with my annual salary increase, but this year there are no salary increases, so ... Yeah. This may affect my savings rate, as I may have to scale back what I've been depositing. This means I may have to reconsider my $10K goal for next October. I'm not happy about that, but one thing is for certain:
I will not be scaling back my debt payments. I will be debt free come October 2010. Period.
So that's where we are for July 2009. Have a good month!
The Debt: $9,923
The Savings: $5,385
The debt has gone down nearly $550, and the savings finally swung in the right direction -- by over 700 bucks. I've still got a lot to consider, though. For one, my rent is about to go up. In the past, I've been able to offset my rent increase with my annual salary increase, but this year there are no salary increases, so ... Yeah. This may affect my savings rate, as I may have to scale back what I've been depositing. This means I may have to reconsider my $10K goal for next October. I'm not happy about that, but one thing is for certain:
I will not be scaling back my debt payments. I will be debt free come October 2010. Period.
So that's where we are for July 2009. Have a good month!
Thursday, May 28, 2009
The Buck Stops Here
I know exactly when it happened. It was when I decided to go to the Cape. It's not that I couldn't use a vacation. Believe me, I was thankful to go and I needed the break.
The beginning of the end was when I didn't move my friend's half of the plane ticket over to my savings. Since then, I've turned a blurred eye to my finances. I've used my savings as an easy backup to cover my misdeeds. And the effects have started to show. What was once a snag has become a tear. If I'm not careful, if I don't reclaim control and soon, that tear is going to be a hole.
So it's time to do just that -- reclaim control. For example, another friend invited me along for a trip to the Minneapolis. There's an exhibition she wants to see, and she has a friend who lives near there. I was all set to go along when it occurred to me just what it would cost. Sure, the airfare wouldn't be too bad, but then there would the three nights' charge for a hotel room. And then there's the car rental, food, and shopping expenses.
What was I thinking?!
So though it would've been fun, I can't do it. I've got to get back on track.
My original goal for December 31 was to have $7,500 in savings. Unless I win some money (which would be just fine with me, by the way) or am bequeathed an inheritance from a rich relative (an impossibility since I have no rich relatives), that goal won't be met. Salaries are frozen and my rent's about to go up. If I manage to have $6,000 by then, I'll be grateful. (How I'll meet my $10,000 goal by October 10, 2010, is beyond me, especially given the possibility I may go to Italy next June for a week. More on that later.)
In the short term, the important thing is that I go back to taking it one day at a time. I have to reconsider my purchases -- even groceries -- and stop with the impulse buying. If I'm bored, well, I need to stay home and craft. Or read one of the 50+ unread books on my bookshelves. Running to the store for this and that isn't doing me any favors.
The buck stops here -- literally.
The beginning of the end was when I didn't move my friend's half of the plane ticket over to my savings. Since then, I've turned a blurred eye to my finances. I've used my savings as an easy backup to cover my misdeeds. And the effects have started to show. What was once a snag has become a tear. If I'm not careful, if I don't reclaim control and soon, that tear is going to be a hole.
So it's time to do just that -- reclaim control. For example, another friend invited me along for a trip to the Minneapolis. There's an exhibition she wants to see, and she has a friend who lives near there. I was all set to go along when it occurred to me just what it would cost. Sure, the airfare wouldn't be too bad, but then there would the three nights' charge for a hotel room. And then there's the car rental, food, and shopping expenses.
What was I thinking?!
So though it would've been fun, I can't do it. I've got to get back on track.
My original goal for December 31 was to have $7,500 in savings. Unless I win some money (which would be just fine with me, by the way) or am bequeathed an inheritance from a rich relative (an impossibility since I have no rich relatives), that goal won't be met. Salaries are frozen and my rent's about to go up. If I manage to have $6,000 by then, I'll be grateful. (How I'll meet my $10,000 goal by October 10, 2010, is beyond me, especially given the possibility I may go to Italy next June for a week. More on that later.)
In the short term, the important thing is that I go back to taking it one day at a time. I have to reconsider my purchases -- even groceries -- and stop with the impulse buying. If I'm bored, well, I need to stay home and craft. Or read one of the 50+ unread books on my bookshelves. Running to the store for this and that isn't doing me any favors.
The buck stops here -- literally.
Friday, May 22, 2009
The Cheap Friend
All my life, I've chosen quality over quantity in my friendships. Now, in my 40s, I have a wonderful group of fascinating and diverse people in my life. I revel in their differences. But despite all those differences, they share one thing in common: They all have or make more money than I do.
That's right: I'm the poor friend.
They all have homes or condos. They redo their kitchens and go on fabulous trips. One went to China last year, another went to Ireland last month, and still another is vacationing in the south of France next week. One friend's husband bought her a BMW for her birthday a few years ago.
I rent. Many of my furnishings are either really old (I've had the same bedroom dresser since I was 8 or 9) or secondhand. And when it comes to vacation planning, it's usually just a drive to visit my parents. (And let me tell you, that's no vacation.) My recent trip to the Cape was an extravagance, and it was doable only because I didn't have to pay for a hotel on top of airfare.
I don't mean to sound like I feel sorry for myself. I know that in the grand scheme of things, I'm doing OK. Indeed, I am blessed. My needs have always been met.
But sometimes when I'm around these friends, I feel "less than." It's nothing they say or do; they're all genuine and generous and kind. But as I've done since I was a kid, I compare myself to others only to find that I come up short. (This unfortunate trait comes into play with all sorts of things -- even hair! -- but as this is a debt blog, I'm focusing on its effect as far as my financial situation is concerned.)
This is how I ended up in debt in the first place -- this desire to fit in, to keep up with Joneses, as they say. I've spent a lot over the years in trying to look and live like my fab friends.
Now I'm paying for those past sins. And as a result, sometimes I'm forced to acknowledge -- mostly to myself but sometimes, awkwardly, to them -- that my circumstances are different, that I can't have the things they have or do the things they want to do. Instead, I have to be mindful of the budget.
Like when I'm shopping with them and I find something I love only to see the price tag and have to put it away. Or when we're eating out and I request separate checks to avoid having to split a bill I can't afford. I go from feeling like the poor friend to something I consider much worse: the cheap friend.
It is humbling, even embarrassing.
I am halfway to being debt free. So close, but still so far away. I just want this debt to be gone so I can stop feeling like a moocher. I want to go out to eat and order what I want without worrying about how much it costs (and order something to drink other than water). I want to be able to go away for a few days without feeling like I'm breaking the bank. I want to not have to defer an educational opportunity because I can't [expletive deleted] afford it.
I know in the end this will have all been worth it. But you know what? Sometimes it sucks.
That's right: I'm the poor friend.
They all have homes or condos. They redo their kitchens and go on fabulous trips. One went to China last year, another went to Ireland last month, and still another is vacationing in the south of France next week. One friend's husband bought her a BMW for her birthday a few years ago.
I rent. Many of my furnishings are either really old (I've had the same bedroom dresser since I was 8 or 9) or secondhand. And when it comes to vacation planning, it's usually just a drive to visit my parents. (And let me tell you, that's no vacation.) My recent trip to the Cape was an extravagance, and it was doable only because I didn't have to pay for a hotel on top of airfare.
I don't mean to sound like I feel sorry for myself. I know that in the grand scheme of things, I'm doing OK. Indeed, I am blessed. My needs have always been met.
But sometimes when I'm around these friends, I feel "less than." It's nothing they say or do; they're all genuine and generous and kind. But as I've done since I was a kid, I compare myself to others only to find that I come up short. (This unfortunate trait comes into play with all sorts of things -- even hair! -- but as this is a debt blog, I'm focusing on its effect as far as my financial situation is concerned.)
This is how I ended up in debt in the first place -- this desire to fit in, to keep up with Joneses, as they say. I've spent a lot over the years in trying to look and live like my fab friends.
Now I'm paying for those past sins. And as a result, sometimes I'm forced to acknowledge -- mostly to myself but sometimes, awkwardly, to them -- that my circumstances are different, that I can't have the things they have or do the things they want to do. Instead, I have to be mindful of the budget.
Like when I'm shopping with them and I find something I love only to see the price tag and have to put it away. Or when we're eating out and I request separate checks to avoid having to split a bill I can't afford. I go from feeling like the poor friend to something I consider much worse: the cheap friend.
It is humbling, even embarrassing.
I am halfway to being debt free. So close, but still so far away. I just want this debt to be gone so I can stop feeling like a moocher. I want to go out to eat and order what I want without worrying about how much it costs (and order something to drink other than water). I want to be able to go away for a few days without feeling like I'm breaking the bank. I want to not have to defer an educational opportunity because I can't [expletive deleted] afford it.
I know in the end this will have all been worth it. But you know what? Sometimes it sucks.
Tuesday, April 28, 2009
I've Fallen and I Can't Get Up
I have fallen off the wagon. Hard.
The last two weekends have seen me spend, baby, spend. It's like I can't leave the apartment without shopping somewhere. Just a few things at Bed, Bath, and Beyond. Ooo! Flip-flops are on sale at Old Navy ... while I'm here, I'll check the clearance rack! Gotta swing by Wal-Mart for a few odds and ends.
As a result, I've spent a significant portion of the money I'd set aside for my trip next month. Apparently I didn't set it aside far enough. Thankfully, I haven't charged a lot. I'm still ahead on my debt payment plan, even with the one charge I've made, so that's good. Still, I've got to get a handle on things, and soon, before things get too out of control.
On the plus side, I've been working hard to get our national economy back on track.
The monthly update for May is coming in a few days. It won't be tragic, but it won't be great. See you then.
The last two weekends have seen me spend, baby, spend. It's like I can't leave the apartment without shopping somewhere. Just a few things at Bed, Bath, and Beyond. Ooo! Flip-flops are on sale at Old Navy ... while I'm here, I'll check the clearance rack! Gotta swing by Wal-Mart for a few odds and ends.
As a result, I've spent a significant portion of the money I'd set aside for my trip next month. Apparently I didn't set it aside far enough. Thankfully, I haven't charged a lot. I'm still ahead on my debt payment plan, even with the one charge I've made, so that's good. Still, I've got to get a handle on things, and soon, before things get too out of control.
On the plus side, I've been working hard to get our national economy back on track.
The monthly update for May is coming in a few days. It won't be tragic, but it won't be great. See you then.
Thursday, April 2, 2009
My Latest Obsession
I want to think of myself as a crafter. I knit a little, I sew a little. I have these grand ideas of making beautiful things to decorate my home with, give as gifts, maybe even sell someday, when my skills are better. Problem is, I'm intimidated easily and often have a hard time working up the courage to conquer my fear of royally screwing up.
But that doesn't stop me from buying supplies.
My latest obsession is beautiful fabric. I have a small trunk full of it. Some pieces are remnants, but much of it is not. In fact, a significant amount is the result of my seeing fabric in the store, gasping at how pretty it is, imagining all the things I could do with it, and buying a few yards -- you know, just in case I decide to do something grand and will need more than a tiny piece. Better get a couple yards, I tell myself.
Why am I mentioning all this? Well, because in the last seven days, I've spent almost 100 bucks on fabric. It's all gorgeous, of course, but ... I haven't a clue what I'm going to do with it. So far, all I've managed to do is spread it out on the floor and stroke it, marveling at the colors of all the different designs.
100 bucks. On fabric. Fabric that I don't know I'm going to do with.
And I charged it, too.
Which brings me to this: I'm ahead of my debt payment schedule. Well, I was until I went on this fabric bender. That's how I justified my purchase. Even with this charge, I said, I'm still a little ahead.
But then last night I started feeling like a fraud. I mean, everything I've done the last 16 months has been done to get out of debt. What the heck am I doing charging $100 on fabric? So last night, I did the hard thing -- but the right thing: I transferred money from savings and set up a credit card payment. And next week, after I get paid, I'm going to reimburse my savings for the amount.
I mean, if I wouldn't be willing to pay cash for it, there's no reason to buy it, right?
But that doesn't stop me from buying supplies.
My latest obsession is beautiful fabric. I have a small trunk full of it. Some pieces are remnants, but much of it is not. In fact, a significant amount is the result of my seeing fabric in the store, gasping at how pretty it is, imagining all the things I could do with it, and buying a few yards -- you know, just in case I decide to do something grand and will need more than a tiny piece. Better get a couple yards, I tell myself.
Why am I mentioning all this? Well, because in the last seven days, I've spent almost 100 bucks on fabric. It's all gorgeous, of course, but ... I haven't a clue what I'm going to do with it. So far, all I've managed to do is spread it out on the floor and stroke it, marveling at the colors of all the different designs.
100 bucks. On fabric. Fabric that I don't know I'm going to do with.
And I charged it, too.
Which brings me to this: I'm ahead of my debt payment schedule. Well, I was until I went on this fabric bender. That's how I justified my purchase. Even with this charge, I said, I'm still a little ahead.
But then last night I started feeling like a fraud. I mean, everything I've done the last 16 months has been done to get out of debt. What the heck am I doing charging $100 on fabric? So last night, I did the hard thing -- but the right thing: I transferred money from savings and set up a credit card payment. And next week, after I get paid, I'm going to reimburse my savings for the amount.
I mean, if I wouldn't be willing to pay cash for it, there's no reason to buy it, right?
Thursday, February 26, 2009
Every Little Bit Helps, Part II
I almost ordered a rug a few minutes ago. I saw it online earlier and fell in love with it. In. Love.
I had already clicked to add it to my bag and was about to go through the rest of the online shopping process -- with my credit card! -- when I thought to myself, "Would you rather have the rug? Or would you rather be debt free?"
I chose the latter.
The rug is $70. And though it's small, it's worth every penny -- it's gorgeous and so my style. Still, it's worth every penny for someone who has those pennies to spend on a small rug. And right now? That's not me. I have other priorities, and if I ever want to be that person who has those extra pennies for a $70 rug, I need to say no to such things now.
I had already clicked to add it to my bag and was about to go through the rest of the online shopping process -- with my credit card! -- when I thought to myself, "Would you rather have the rug? Or would you rather be debt free?"
I chose the latter.
The rug is $70. And though it's small, it's worth every penny -- it's gorgeous and so my style. Still, it's worth every penny for someone who has those pennies to spend on a small rug. And right now? That's not me. I have other priorities, and if I ever want to be that person who has those extra pennies for a $70 rug, I need to say no to such things now.
Saturday, February 14, 2009
[Expletive]!
I've had a 12-inch PowerBook G4 for several years. I love this little thing. It goes well with my OCD issues -- it's so small and neat and elegant.
I've taken good care of it over the years. But then one night a couple months ago, I was sitting here on the couch with it in my lap, and I must have shifted because
down
it
went.
It hit the floor. Still, everything seemed to be working OK. But then one night last week I went to insert a disk into the drive and it didn't work. Turns out the optical drive is, as the Apple employee described this afternoon, kaput. The cost to fix? $329.
I went ahead and set up the appointment to drop it off (you have to schedule such appointments with the geniuses at Apple's Genius Bar). Afterward, though, the pain in my gut wouldn't go away. It was more than the holy-crap-it's-going-to-be-$329! Granted, that was part of it, but it was more that it was a bad investment for an older computer. In computer years, this laptop is ancient. I'd be better off buying a new one when I can afford it. It will be inconvenient not to have a disk drive until then, but I don't really use the drive that much these days. I'd used it to upload music, but now I mostly download from iTunes.
It was a tough decision to make -- I'm the type of person who likes for all her things to work perfectly. Sure, I could've charged the repair. I could've taken money out of savings for it. But my goal is to be debt free and have $10,000 in savings in October 2010. For all this to happen, tough decisions have to be made, and this is one of them.
I've taken good care of it over the years. But then one night a couple months ago, I was sitting here on the couch with it in my lap, and I must have shifted because
down
it
went.
It hit the floor. Still, everything seemed to be working OK. But then one night last week I went to insert a disk into the drive and it didn't work. Turns out the optical drive is, as the Apple employee described this afternoon, kaput. The cost to fix? $329.
I went ahead and set up the appointment to drop it off (you have to schedule such appointments with the geniuses at Apple's Genius Bar). Afterward, though, the pain in my gut wouldn't go away. It was more than the holy-crap-it's-going-to-be-$329! Granted, that was part of it, but it was more that it was a bad investment for an older computer. In computer years, this laptop is ancient. I'd be better off buying a new one when I can afford it. It will be inconvenient not to have a disk drive until then, but I don't really use the drive that much these days. I'd used it to upload music, but now I mostly download from iTunes.
It was a tough decision to make -- I'm the type of person who likes for all her things to work perfectly. Sure, I could've charged the repair. I could've taken money out of savings for it. But my goal is to be debt free and have $10,000 in savings in October 2010. For all this to happen, tough decisions have to be made, and this is one of them.
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