New Year's Resolution

I have paid down five thousand dollars and debt, but ran up two more on another credit card. Finally I removed my credit card from my wallet. I've always wanted to do it, but never thought I could manage without it. Well, clearly I can't manage WITH it! So it's gone. I also ordered my credit card statements dating back to March 07 when I went from no balance to this. I am going to find out the main reasons I used my card and make a plan for those expenses. If they are just gifts to myself, that's one thing, and if they are all car repairs, that will tell me something. I want to know how much I paid into my account in that time period, as well. I need to know my weaknesses, so I can conquer them!

blogging is hard

It's hard to maintain a blog, for me. But I'm glad I have it. Especially now. I've sworn off whining about the high cost of everything. I realize it alienates my rich friends, and I also realize that I'm probably not as badly off as I think, so if I don't say it, it sort of isn't a problem. Something like the power of positive thinking: I certainly want to quit the negative thoughts!

I need support from the gods

I have an appetite for material things. It isn't always this strong. I'm better off when I'm oblivious to buying and upgrading. These days, though, I'm constantly imagining stuff I want. It's hopeless. Meanwhile, I've strayed from my budget. It's just been an expensive time. I mean, my best friend from college is getting married in Seattle, and it's just completely out of my budget to go...but I'm going. I have to pay for a renewal for my phlebotomy license. Triple A is due. There are weddings and wedding gifts. It was time to buy new glasses. I sprung for a ticket to see Roger Waters do the entire "Dark Side of the Moon"-(that's cool, but not for the credit card!!!) I'm really sinking, by about $600. dollars. I just have to stop it.

I need support from the gods

I have an appetite for material things. It isn't always this strong. I'm better off when I'm oblivious to buying and upgrading. These days, though, I'm constantly imagining stuff I want. It's hopeless. Meanwhile, I've strayed from my budget. It's just been an expensive time. I mean, my best friend from college is getting married in Seattle, and it's just completely out of my budget to go...but I'm going. I have to pay for a renewal for my phlebotomy license. Triple A is due. There are weddings and wedding gifts. It was time to buy new glasses. I sprung for a ticket to see Roger Waters do the entire "Dark Side of the Moon"-(that's cool, but not for the credit card!!!) I'm really sinking, by about $600. dollars. I just have to stop it.

a setback?

I have been searching for a decent apartment, and this weekend I viewed a well-maintained, beautiful place in a great neighborhood. I liked the landlord, and she liked me. Unfortunately, 70 other people inquired about it, and in the end, I didn't get it. I am disappointed. Looking is hard, and what if this keeps happening, that the competition is just too stiff? I make a good impression; I'm stable, personable, and my credit rating is great. I think I probably stood a good chance of getting the place, but ultimately did not have the luck of the draw. Well...every month that I don't have to pay the extra $300., I should be happy in a sense. Right? And I'm not looking forward to moving, and I would have had to leave my beloved neighborhood if I took that place...

constant pressure

I got a windfall of $1,700. I often fantasize about how I would spend a windfall of $1000., or 5,000., or 10 or 20...Just as often, un-windfalls happen, so I'm not excited. I paid off some debt with $7oo, then put the other thou in my emergency savings, to make the first $1000. But any day now, I'm going to be moving into my own apartment from a place I'm sharing, and I will definitely be paying at least $300. more a month. It's strange: I am really serious about saving money. I really want to be frugal, but when I search for apartments, there are certain things I won't sacrifice. For example, I don't want to live in a studio apartment. That right there is a $300. distinction. And I have lived with people for years, but I can't take their bad furnishings and messes anymore. I vant to be alone!!!

progress

It's May 18th. I am down to 12,000. I am adding $25. a month to my debt paydown. Big dreams...we'll see.
I have saved $83. per paycheck over the last few months, working towards $2000. per year.
goals to keep in mind: 8/07, balance $10,400. 1/08, $7,800. 5/08, $5,700. 8/08, $4,125. 1/09, $1500. 4/09 ZERO.

excruciating penance

I am paying for bad habits that started when I was seduced, in the major thoroughfare at my college student union, into getting my first credit card in exchange for m&ms. I read articles, all the time, about this scandalous practice of credit card companies. I was a classic case. Let's say, "I am". I am not calling myself a victim. At this point, I take responsibility for my pattern of bad behavior. It merely started then. Back when I was 10 years old, I was the queen baby-sitter of my neighborhood, and I socked away cash. Now, I am trying to revive that part of myself. But in my twenties, I went bad. I paid for parties with my credit card, and one trip to Central America. I bought a used car for $3,000., putting it on a card with a 0% APR. (At the time, I couldn't get a small loan with that low an APR.) On credit, I bought a new wardrobe before the start of a new job. I would be late on payments and have fees associated with it. I often wish I could analyze the makeup of my current balance. How old and encrusted is some of that debt? With my modest income, I can still acheive my goals, but the debt gets in the way, and time is of the essence for retirement and stock accrument. Now, I must pay the debt, and put off aggressive saving. I regret this. Ye, teens and twenty somethings! Abandon all hope if you enter this pitfall!

nascent savvy

Maybe it is due to progress in my self-education about money management, or maybe it is because I am getting older, but I am getting tougher. Once upon a time, I would not scrutinize my bank statements, and haggling was unheard of in my m.o. Now, I know where and how I spend my money, and any inconsistencies, I hone in on and call to question. I just got to the end of an introductory rate APR for my credit card balance. Awhile ago, I decided not to open any new credit card accounts, and not close any of the four I've got. The goal is to establish long-term membership with the accounts, but not have a whole lot of them overall. I called each of the four companies to see who could give me the best deal. A couple weeks ago, one offered me 4.99% for the life of the loan. I didn't take it, thinking I'd shop around and call them back. The company where my money currently sits was going up from 4.99% on 4/2/07, and I was getting the run- around about the new APR. They quoted me 7.99% for a year, which wouldn't have been so bad, but then they changed it to 9.99%. Of course, I wasn't jumping on anything at the time these offers were first made. The last straw with my current company was that they charged me the finance charge for the 9.99% before 4/2/07. I suppose they were looking ahead...but still. I balked. I asked them to take half of the new finance charge away, since it is still prior to the change date. Then, I moved my money to a place where it will be 4.99% until 3/10/08, (mark my words) and then lock in at 7.99% for the life of the loan. It's a couple hundred here or there, and I must stay current with payments, but I liked dealing with the second company, and the particular sales assistant I had, better than the first. My debt still holds me back from higher things, but I feel a teensy bit empowered.

financial update march 2007

I am not making the $500/m payments to my credit card, as planned. I only paid $300. this month. But I am down to $12,999. on my balance. At least I am going down. I also started a monthly emergency fund, automatically deducting $166./m out of my paycheck. So far, it doesn't hurt too badly. I still need a solid monthly contribution to my IRA, (I'm aiming for $360./m), and an increase in my "miscellaneous" allowance. I just made a separate account for food, meals and entertainment and "miscellaneous", apart from the account for money just to pay monthly bills. I hope that this way, I will never dip into the essential bills money, and I will be able to view my balance for the more fluid expenses, unclouded. A problem for me with the "meals and entertainment" category is that there has been no "miscellaneous" category, so any misc stuff I buy eats into my entertainment budget, which is $200./m.

How do I plan to get, like, $566./m extra? Well, the raise negotiation at the union contract table is not looking so hot, even though I presented in front of HR and showed how although my area has a phenomenally high cost of living (matching S.F. as the highest in the country), our county makes the thirteenth lowest salary out of 16 neighboring counties. We are not going to get a significant raise. My options, then, are to apply for a job in neighboring S.F., and there is one now which is for the same classification as my current job, but it pays $15,000. more a year. Or, I'm thinking of getting a part time job just to pay off my credit card. After I pay that off, I can quit.

Meanwhile, I am investigating life insurance policies. I have a mortgage, and I might like to will my house to a couple of friends and their kids, but not the financial burden.

Oh, yeah: recent good financial behavior includes the beginning of an emergency fund, which I plan to continue to grow even after reaching the basic $$1000.; I submitted my taxes; I paid off a $2000. personal loan; and I have pledged not to buy new clothes, books or music until 8/07. So far, so good.

depressed about money today

I'm dwelling on how I am not where I want to be because of my debt. I have such modest goals, and haven't even attained them. I wish I could think of a way to make more money. Basically, I want to be making $500 more a month just to be making my modest goal for an IRA, and modest savings goal. After that, though, I'd still be tight on the budget. I looked at a website where this guy has a financial manifesto, his name is Marshall Brain. His cautionary tale case fits my situation to a tee. I have just enough in my budget for basics, but no wiggle room. And extra stuff comes up all the time. But I still blow it regularly, wasting money in a time when there just isn't extra for anything. Vicious, vicious cycle. I need to relax and turn my attention elsewhere. I am ok. Thank god I have a roof over my head, basics covered, and food. How can I complain? Really! Many, many of my friends have less money and more struggle for the basics.

I saw a segment of a movie, one of those monologues by Spaulding Gray, in which he says, "What would it be like to know poor people?" It was strange. I guess a lot of people stick among their own, rich or poor or middle. But in my life, there are literally a few billionaires, some millionaires, plenty in my range, many with a lot smaller salaries, people on Social Security and a handful of homeless with no income, even some prisoners. All of these people I have spent the day with on many occasions, been in their living space, eaten with them. It's funny, some of my wealthier friends buy me lunch, and I buy lunch for some of my poorer friends. I, of all people, should be pretty zen about money, and know it isn't the key to happiness. A close friend of mine is a prisoner. When I visit him, he shows up in the same, faded yellow jumper, year after year. In his pocket, he carries some early seventies-dated glasses wrapped in toilet paper. That is grounding! The guy literally has nothing. What am I complaining about?

the real deal

ok, I need to get real, lest I slip too far. I bought three expensive pairs of shoes online yesterday, with my party credit card. Like, a $300. set back. I haven't bought new shoes in four months, and that pair was used, for $20. I recently decided to stop wearing shoes that are bad for my feet, that I can't comfortably walk in. I am convinced that sexy shoes can be found, of the healthy variety. But that revelation shouldn't have translated into a zombie command to go use my credit card...I did it via mail order. My plan is to send at least one pair back (I figure they won't all be right, and I am picky). Then, I must make good on the debt. What part of my slim budget will suffer for this? Ugh.

Other recent bad habits: $22. for a used jacket two days ago. A damn parking ticket in a "street sweeping" zone: $50. That makes me so mad!!! It was on a street I don't know that well, and there were other cars there at first. I didn't know!!! I'm really not an idiot! Damn them! I acted like a little bit of an idiot when I bought those shoes, though...

Uses for a windfall

I imagine what I'd do with a windfall of different fantasy amounts. Fantasy is the operative word. If I got a windfall of $10,000., I'd spend $2,ooo. for two paintings that I crave, $3,000. toward my big debt, and put the last $5,000. in a high-interest savings account. Once I pay off my consumer debt and build a savings/cushion, I plan to start investing with focus. Socially responsible investing, of course!

trim budget $100./m

I seem to live outside my means by about $100./m. I must trim back my spending!!! I fear that if I made a hundred more, I'd only go over that budget. It's arbitrary how much I make, and the fact that I always go over my budget. It's just a mindset or a habit. I do the same thing, being exactly ten minutes late for work every day. Ten measly minutes!! So shabby. Couldn't I just reset my alarm clock to ten minutes earlier? I am ON TIME at ten minutes late, every day. Weird consistency. Same with my money.

I just joined Dave Ramsey's My Total Money Makeover. I tried to fill in a budget according to his guidelines. It was hard, in fact, so far impossible. I do have a budget, and I modify it for every paycheck within the general setting. Somehow I can afford the things I need to pay for...except for the lost $100. But Dave's method makes my budget not look realistic. Maybe I should take a closer look!

Here is the stuff I can use out of the 7 Baby Steps:

$1000.00 ER fund (had it, used it, need to rebuild it)

debt snowball (doing it, on the last, big chunk of it)

ER fund worth 3-6 months monthly expenses (12,000)

15% monthly income to IRA (that would be the $300. I'm working towards. I'm 1/3 the way there now)



My personal budget:

monthly take-home 1980.00

rent 670.
PGE 35.
Water 22.
Car Gas 20.
Car ins. 33.
phone 60.
DSL 40
credit card debt 500.
hair dye 10.
groceries 200.
meals out and entertainment 200.
misc. 90. (things I always need but not every month)
gifts
donations
parking tickets
hair cut
medical copays
small car needs, like windshield wipers, oil...
cosmetics, clothes
books
short road trips
small entertaining
IRA 100.

What is difficult is that my DSL went up 20/m and my rent went up 65/m as of March 1st, acknowledged above. Before, I had more to put toward my IRA. I still have a lot going to my workplace retirement, which comes out of my check before I get it, so I didn't count it above.

I figure that if I ever get a raise, the first thing I want to do is get a total of $300./m into my personal IRA. After that, I need a bigger emergency fund. When I pay off my damn debt, then I can dedicate the $500./m toward that. Meanwhile, I get 26 paychecks a year, so two of them give me a mini-windfall, which goes to a mini-emergency fund. I used all of it last year when my car was stolen twice, recovered both times with the steering wheel column busted! No repair insurance, so I used the er fund, did some of the work myself and had to wait to build up the extra money for more repairs. But I didn't go into more debt!!!

financial goals

My financial goals include owning a decent mattress instead of a futon. I'd love to have a used car in the $7,000. range rather than the $3,000. range, and I'd like that to be fully insured. I want a decent "emergency fund". I'd love to live in a house I own, but in the Bay Area, as long as I'm single, I'm not sure that's possible. Always debating where to draw the line between living for today and saving for tomorrow, I am starting to wonder if it makes more sense to give up the plan to save for a down payment on a house, and let myself put more money towards an apartment. That way, in the now, I could be in a beautiful place that might be as long term as a house of my own. I'm getting tired of not being able to decorate my house the way I'd like, or collect art. How about increasing my income by tweaking my career? I've never gone to graduate school. If I did, would I make enough more money to offset the new debt? Ultimately, I'd like to have enough money to spend it philanthropically.

work in progress

I read an article in the NY Times this morning about people in debt creating blogs to vent their financial travails. I like the idea. Maybe if I keep a log, (and why not in a modern format?) I can stick to my plan better. My budget is so tight, so much so because I'm trying to pay down my personal debt quickly, that it often hurts. Venting might help.

I like the idea of the Compact movement, where people don't buy anything new other than food, medicine and underwear for an appointed time, such as one year. I know I could do this. I even love the prospect of not entering a Target for a year. I see all that merchandise as landfill, anyway. What about used stuff? I buy used books and clothes already. I can spend plenty of money that way. For me, no new-to-me would have to be the rule, unless I could get it for free.

My major debt:

$13,264. to one credit card with a 4.99% APR through 3/07. My plan is to pay $500./m toward this debt, and keep the APR low by moving it to another account of mine or else negotiating to keep the low APR at the current company. I consolidated all my consumer debt to one place, now I aim to keep the APR low. On top of this, I don't want to get any new credit cards. (That is supposed to help my credit score.) I already have four cards, two of which are totally out of use. A third, I use for certain travel I do, so I can clearly watch my travel budget. I pay that right back. I used the same card for my annual party, which I fund with part of my tax return. I spent a thousand dollars on that. As soon as I get my tax return, (calculated by my tax guy to be about $3,000.), I will pay off this debt. I owe another $1000. to my dad, who gave me a short term loan to pay off an old friend well ahead of the due date. Though the debt was not late, it was coming between us, hence the help from dad. He and I can do business together, I already know. The last $1000? I guess it would be best put toward my big debt. Instead, since I don't have a savings, I want to put it in an ING account for an emergency fund. I wish I could accumulate at least $10,000. for a real emergency fund. Then, when my car dies, I could buy another outright. Or survive an unexpected job loss. Or put it toward a house down-payment.

I am immensely frustrated financially. Mainly, it's where I live: Oakland, Ca. Here, the median house cost is $740,400. That is equal to the median in San Francisco. These were just listed in the top ten most expensive housing markets in the country. Only the next most expensive, L.A. and N.Y.C. were in the $500,000. range. Big difference. Others in the top ten went down to the $300.000s. I make $50,000./yr. and am single with no kids. That is more money than most people in the world make. Yet here, I feel strained, and as though it would be impossible to ever buy a house in the Bay Area. As I write, I think of a millionaire I know, who was complaining to me about money the other day. He bought a house around here for a million. He is constantly pressured about his gargantuan mortgage payment, taxes and insurance. And he's single too, with no kids. I didn't feel simply resentful to hear him complain. In fact, I felt kind of equal with him. I mean, in his case, his money doesn't afford him no worries. But he could help himself a lot. He didn't have to buy such an extravagant home. He also owns a $90,000. luxury car. I don't know the extent of his other extravagances. But without the fancy, expensive stuff, he could have more wiggle room. What is it worth to him?

In my case, I have created a budget, I make my own coffee each morning, and have cut down from two cups to one...I rely heavily on the library for new books, I only fill my car-tank once a month, I didn't run the heat this winter, I share an apartment to save rent, I sleep at youth hostels when travelling, I split meals at restaurants...(I'll get into the transgressions later). What are my extravagances? Like my rich friend, there is probably more I could cut.

I do have fun, as grim as my budgeted lifestyle may sound. I live in a gorgeous apartment, and I pay $600./month. Oakland boasts some of the sunniest, balmiest weather in the world. The plum trees and magnolias are in bloom right now, sweetly scenting the air. I just had my annual Valentine Party, with an art exhibit of my friend's stuff, a DJ and a lavish array of flowers. There goes a lot of my money! I love to walk in my neighborhood, hike, visit, read, and attend poetry readings and art openings. I like to cook and bake. I'm a community activist. So much can be done on a shoestring budget. My sister has a lot of money, and her house is like a spa destination for me out of town. I put attention on enjoying everyday life, even as I don't have extra money for much travel, gifts, material things.

With my plan to pay $500./m toward my debt, I should be able to pay it off in two and a half years. What if I make short term goals, along the way, to help keep me on track? For example, by April 30, I should be down to 12,264. (Not including finance charges.) Then, by the end of August (my birthday month), I should be down to 10, 264. By December, 8,264. Can somebody give me advice about how to factor in finance charges? I figure that in the end, it might tack on $2000. more to my cost. Currently, my minimum pymt is listed as about $200./m, and I pay $300./m more than that.