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?
Tuesday, February 20, 2007
Monday, February 19, 2007
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...
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...
Sunday, February 18, 2007
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!!!
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.
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.
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