Funky Attitude

Last week Tricia at Blogging away Debt mentioned that she had been in somewhat of a funk lately. She really couldn't figure out what was causing it. Well, I've been in a bit of a funk lately too. But I think I know the reason.

One of the reasons for my funky attitude is that a couple of weeks ago I put a deposit on our vacation and bought airline tickets. One would think I would be ecstatic. I mean, we're going on our first vacation in three years! You see, what was going to be a relatively inexpensive vacation is now costing me more than I wanted to spend.

Originally, a friend had offered us the use of her Florida home and car that she kept down there. By the time my family and I figured out when would be a good time to take a vacation together, she had rented her place. I began searching the internet for someplace to stay in Florida, and I found one. When I showed it to my husband he decided he would rather go to Puerto Rico. You know, "for a few dollars more..."

In addition to the condo and the airline tickets, now we'll have to rent a car. Of course, there is spending money while vacationing. In order to keep this vacation on a cash basis, I'm going to have to drastically reduce my aggressive credit card pay down. I know, I know...I'll take some cheese with my "whine".

When I posted my 100th post I said would highlight some of my favorite entries. Two of my favorites are The Giving Tree and Easter, Christmas, and the Day after New Year's

How am I doing -- February and March 2008

Happy Easter to everyone!!!!!

It's interesting how life changes. It seems that it was not long ago that our Easters were filled with visiting relatives, Sunday morning church service, Easter baskets and an Easter egg hunt, and of course, the big Easter dinner.

Both of my children work in food service. My son is a server at senior living facility and my daugter works at an upscale restaurant nearby. That means neither of them will be home today. The restaurant where my daugter works serves brunch, so my husband and I decided we will have brunch there today.

Anyway, I really want to talk about my finances during the last two months. February was a bittersweet month. I did mange to pay $835 on my credit card, which I am totally thrilled about. The sidebar includes the payments I've made in March too. I paid $1,370 to my credit card debt in February and March. I'm happy to say that my balance is in the single digits! On the other hand, I increased my overall debt by $3995, which is the amount of the loan I got to finance my car. That payment will be $97 per month.

My husband and I spent a lot of time on the weekends in February looking for a car. That means we spent a lot of time eating out. We probably spent $50-$60 every weekend eating out. Sometimes that would include bringing food home for C2 to eat. What's different is that we would pay cash--that's right, no credit card usage for dinners out.

My credit card paydown is my major definite purpose right now. My secondary goal is to be debt free by June 30, 2009. I'm a little off track of my goals right now. Especially with the addition of the car loan. My credit card has a variable rate, which right now is very low. I used the Bankrate calculator to help me figure out when it will be paid down to zero, based on my current interest rate. If I continue to pay $800 per month at the current interest rate, I'll have the credit card paid off in 13 months.

There are additional funds I could use to pay it down sooner, but we have a vacation planned. Rationally, I'd like to say to the family, no vacation, I'm paying down my debt. Emotionally, I think we should go on vacation because we haven't had a vacation in three years, and I think that a change of scenery will be a source of rejuvenation. It will also be interesting to see if we can go on vacation and stay on a cash basis. I think that when we return, I can add those funds to my debt reduction plan. I just increased the vacation fund to $150 per month. We're planning to go away at the beginning of August.

That's how I'm doing so far. Let's see what April brings.

To Quit or Not to Quit

Since my husband started his new job, he's been trying to encourage me to quit my snowflaking job. He believes that I am having too many meltdowns. He's probably right. It is challenging to work 40 hours Monday through Friday and then 16 more on the weekends. But I do it in the name of debt freedom! Anyway, his thought was that since he has an income again, we could meet our financial goals without me spending my weekends working.

So a couple of Saturdays ago I showed up at my snowflaking job, knocked on the door, and the manager let me in. As soon as I walked in, I told her that I was giving my two-week notice. She was not happy. I explained that working seven days a week was becoming a bit overwhelming. She said she understood.

I went into the back room to put my stuff away and get ready to go out onto the floor. When I came out of the back room, she asked, "Would you be willing to work one Sunday a month?" Now, I've known the manager for many years. She used to buy baskets from me when I sold Longaberger. We had lost touch until she became the store manager, and she has always been someone that I admired and respected.

I told her I would stay on and work one Sunday a month. Doing this actually serves two purposes. One is that I still get the employee discount. The second is that I still have a few snowflakes to sprinkle on my credit card debt. As you know, on December 31, 2008, the balance on my credit card will be $2,000!

How am I doing--January 2008

My husband set me up on MS Money. I spent most of this evening assigning categories to my entries. As old school as I am--you know, paper check register, manual recording of items--I can see the benefit in using a debit card or credit card for all purchases when using this program. Hopefully, with the February review I'll have good data. Right now in MS Money it looks like I overspent in January--there's a negative balance. I spent a lot, but I didn't overspend, and I paid cash for all of my purchases.

As you can see from the side bar, I reduced my credit card balance to $10,805. In January I paid $450 towards the balance. I'm starting to get that impatient feeling. I've been trying to figure out if I can double that in February. I'm not sure it's totally realistic.

Finally, I love interest income! My emergency fund has increased to $1,018.87. I owe it all to compounding.

The Big Sale

There is a promotion every weekend at my snowflaking job. A couple of Saturdays ago, it was the big "40 percent off of sale" sale. Well, come to find out even the employees (that meant me too) could take advantage of this promotion! I couldn't believe it. Now, you know I felt compelled to spend my hard earned money. I called my daughter and told her she had to come to the store. There might be something that she "needed". We made our purchases and left my store. Then she and I went to lunch. Then we went to the mall, the big W and the beauty supply store. Of course, we made more purchases. All in all it was an impulsive, expensive afternoon.

One would think that I would be kicking myself. In the past I would have felt like I had a shopping hangover. But guess what? I'm all right with it. Here's why. I had the cash to pay for it! Although I have to use the store credit card to get my discount, I was able to transfer the money from my regular savings to my checking and pay down the card. The total on the card was about $270. Then there was our lunch, the mall, and other purchases. That added up to about $300. Using that money to cover my impulsive spending day didn't impact my debt reduction plan at all. Having the cash to shop...priceless!

One Carnival, So Many Goals

Today was the first edition of the Carnival of Financial Goals. I want to thank Patrick for putting together a brilliant carnival and, of course, including my post. Thanks, Patrick!

The carnival is laid out very cleverly. I say that because whenever I think of financial goals, the first one that comes to mind is debt reduction--probably because I have so much of it,and I've carried it for so long. But this carnival includes 14 financial goals categories.

As much as I enjoyed all of the articles, the Retirement category is my favorite. The Digerati Life and A Renaissance Canuck blog about retiring. The Digerati Life reminds us that life is short and is reassessing her plans to retire as a result of a coworker passing away. A Renaissance Canuck would also like to retire from day job to activities that make her happy. Finally Free from Broke is stepping up his retirement savings next year by planning to make full contributions to his and his wife's Roth IRAs.

With my 50th birthday 40 days away, I often think of retirement. I want to be in control of my next 50 years. That's why I need to free myself from these debt shackles, so that I can move on to saving and investing more. When I'm 80 and I'm sitting on my deck in Hawaii overlooking the Pacific Ocean, I want to look back and have happy thoughts and no regrets.

Wealthy_1's 2008 Financial Resolution

As I've surfed the blogosphere this weekend, I've become energized! Why? Well, Patrick at CashMoneyforLife has announced the Carnival of Financial Goals. Many inspiring bloggers such as BripBlap, Mrs. Micah, and Iowahippiechick have jumped on the bandwagon, so I'm hopping on too!

My primary financial goal for 2008 is to reduce by credit card balance from $11,000 to $2,000 by December 31, 2008. I will do this by increasing my payments from $300 per month to $425 per month from January to June. Then from $425 per month to $1,125 per month from July to December.

I chose this goal because it will help me achieve a longer term goal of becoming debt free by June 30, 2009. I will achieve my goal by stopping my 401K contribution of $110 per month and my financial freedom contribution of $50 per month in January and applying those funds to my credit card balance. Then in June after I purchase the car I'm saving for, I will apply that $700 per month towards credit card.

This financial goal setting got me to thinking. We should set our health goals now too! Why wait until January 1? Let's take the time now to focus on how we become healthier in the new year.

How am I doing?

It's been a very hectic week. I started my new job on Monday and then yesterday was Thanksgiving (whew)! Last Friday, I made a total of the amount I had spent this month. I'll tell you, this budgeting thing takes time and commitment. Plus it's a work in progress!

Anyway, as of November 16, I spent a total of $1,371. My income was $1640. I took $100 from my pay as cash for discretionary, which left me with $149 in my account until this Friday. The largest expense was groceries, which was $501. I spend about $70 every two weeks on supplements and I include that amount in groceries.

As for my debt reduction, I paid off one credit card using retirement savings. I'm relieved that I don't have that debt, but emotionally I feel that I should make a plan to pay that back. My normal debt reduction activites were the $250 to my remaining credit card and $100 to the medical expense. I've updated my financial freedom chart on the sidebar through today.

I am so inclined to say forget this, but I think about how disciplined I was when preparing to compete. I know I need that same commitment and focus to release my debt shackles and become financially lean and strong.

Risky Business

In an earlier post I mentioned that my husband is out of work. He lost his job in September. Unfortunately, that was the spark I needed to get serious about my financial health and my future. I told him this. Also, I explained my plan to him. I told him that I was going to pay down my debt by June 30, 2009 and then I would begin working to help him pay down his debt. I figure that using the snowball method the only debt we should have by the end of 2010 is the mortgage and home equity.

Well, a couple of weeks ago I came home from my snowflaking job and he asked me if I had a few minutes to talk. I said I did. Then he said, "Tell me how much you owe on your credit card because I'm going to take some of the retirement money and pay it off." I took a real deep breath. Then I asked, "Are you sure you want to do that?" I reminded him (like I really needed to) that he's not working and that maybe it would be better if we waited until he was employed again to discuss this just in case we need that money to pay the mortgage, heat or electricity. He replied, "No, let's just do it." I always remind him that I look like I have a lot of debt compared to my income because of the mortgage, the home equity, and we have a joint credit card that I've never used but he always uses. He said that this way since I'm job searching if a prospective employer checks my credit (which we know has happened) it won't look so bleak.

The next day I sent him an e-mail with the balances on the two credit cards that I have. One I had closed at the end of September and the other is still open, but I don't use it. In fact, I'm seriously considering closing that one too. He said to take the money from our joint checking and pay down one of them. So I did. I paid down the one that I had closed.

My spouse is ultra, ultra conservative. He rarely takes risks. So you can imagine my surprise when he suggested this risky business.

C1

Several posts ago I told you about C1. She's 21 years old and has decided she wants to move 13 hours away. My concern was that her budget for a hotel room for her pre-move trip was only $40. I got some great advice from readers. One person suggested that I check out the hotel. So I went to the hotel's (I think it's really a motel) website. I didn't like that it was like a motor lodge where you park your car in front of your room and walk into the room from the outside as opposed to walking into a lobby where there's a desk clerk and then going up to your room from the lobby. In addition I talked with some "live" friends (in addition to my new blogging friends) and decided that I would give her the addition $40-$50 per night she would need to stay at a name-brand hotel. I was just concerned with how this new expenditure would affect my shackle release plan.

My spouse is a good guy. I really should say he's amazing. He always watches my mini meltdowns and then quietly comes up with some suggestions to help. He also went online and found 3 name-brand hotels that would cost approximately $70 per night. Then he told me that he had the additional money she would need to afford it. It seems that when she pays her rent (yes, we charge her rent) he puts it in a savings account for her, but she has no clue. So the good news that I will have peace of mind because she will be in a reputable hotel.

Now, I told my spouse that he needs to be like a detective and figure out a way to go with her on the fact finding mission.

I guess I really am an enabler.

Week in Review

I'm pleased with last week's debt reduction and wealth building activities no matter how small. Here's what happened.

1. I made the final payment on my car loan. That means I paid it off 6 months early! A first for me!
2. I reduced my medical expense by $70.
3. I increased my financial freedom account by $25.
4. I tithed.

This is my moment to celebrate my baby steps. Happy! Happy! Joy! Joy!

In the next post I'll tell you about my hoarding experience at the big "W" on Saturday.



In the next post I'll tell you about my hoarding experience at the big "W" on Saturday.

Here are the numbers!

First, I just have to say I'm so excited that new friends posted comments on my blog! Thank you! Thank you! Thank you!


Tonight's entry is going to be quick as I am preparing for a job interview tomorrow, but I just have to post my numbers. This weekend I'm going to set up my blogroll. I just wanted you all to know that I am grateful for your input.


So here are the figures.


# of days non credit card use: 87
amount owed: $28,354
amount paid: $1,982
financial freedom: $550.04

I reduced my debt by paying $1,650 on my car loan. I got that money from the sale of my Longaberger baskets. Actually, I gave them away. If you know Longaberger I sold them way, way, way below market value. But I'm happy they all have good homes now. And by selling them I was able to make the equivalent of 5 car payments so that on October 23 my car loan will be paid off 6 months early! The other reductions were my credit card payments. I make payments of $250 to each card each month and then they charge me about $80 in interest. When I see it on paper it makes my stomach hurt. I've applied for a AT&T 0%interest on balance transfer credit card to ease my pain, we'll see if I get approved.

My savngs acount I call financial freedom, and it is an ING account. I consider this account my emergency fund account. I put $25 every two weeks in it. That's almost $2 a day. I want to increase it, but I want to decrease the debt first.

Well, that's it. My first official money post.

Can someone explain to me how I put codes into my Html?

Patience, patience, patience

I am waitng for the one of the credit card companies to post the interest on my debt so that I can update my numbers. Hopefully that will happen tonight.

One of my goals was to start a part-time job, which I did a couple of weekends ago. I can't wait to get paid so that I can put apply that money to my debt. Mentally, I have to keep reminding myself that the part-time job pay is for debt reduction because I start thinking of other things I can do with the money other than reduce the debt.

Maybe my mantra should be:

My part-time pay is for debt reduction. Debt reduction means loosening the debt shackles. Loosening the debt shackles means financial freedom!!!!!!!!!!!!!!

I guess I'm just impatient.

I started working at a women's clothing store. It's fun especially compared to my full-time job. It will be challenging because I love clothes, and I love to shop. As a matter of fact, that's how I got in this situation (at least one of the reasons). I work every Saturday and Sunday. My plan is to put at least $100 per week towards my debt.

Blog Action Day

In honor of Blog Action Day, I thought about how setting myself free from these debt shackle can help the environment. Here are two ways.

1. Stop spending indiscriminately. Indiscriminate spending leads to buying stuff. Stuff means things that I don't really need. Usually indiscriminate spending means that I put no thought into the purchase. A pile up of stuff usually ends up as clutter, which is environmentally hazardous to my home and my psyche. (Believe it or not I hate clutter.) Clutter means I have to declutter, which means that now I'm going to discard the stuff. That usually means it's going into the bigger environment in some way, shape, or form.

2. Pay cash or Pay Pal. Using cash or Pay Pal means that there is little or no paper waste (checks) or plastic waste (credit/debit cards) to clutter the environment.