It's been less than a month since my last update! I know you're amazed and excited.
I've actually just been lazy because I had updated my mom in an email and she's usually the only person who reads my blog (although some of my WIR friends might come read it now - hi, friends!). But I suppose I should be thorough. Plus it gives me another excuse to brag and I love doing that.
Payday finally arrived *angelic choir* and I was able to resume breathing. I knew I wasn't spending money and my little meager balance was sitting safely in the bank but ... I don't know, it was still just stressful. I suppose I'm just paranoid that some random charge I forgot about will be pulled out and the little tiny balance won't be able to survive on its own. But ya know just because you're paranoid doesn't mean they're not after you.
Anyway, the balance is up in a safer area now, and I was still able to make a nice chunk payment on that last cc (as well as the monthly payment to mom). I've got a bit of a cushion, but I'm going to try and hang onto it and throw whatever's left at the cc when I get paid again at the end of the month. Hopefully that will let me pay off the credit card completely on my very next paycheck, which is in only T-14 days...and counting!
It's hard for me to believe. I don't think I'll be able to pay off ALL my debt (including the Mom account) by November 16, the 1-year anniversary of my Debt Resolution (or maybe it should be reVolution!), but all my consumer debt will be gone, and then I get to start snowballing huge debt payments to my mom. As I've said before the idea of doing that doesn't bother me too much...the interest rate can't be beat, and she's a nice lady, so writing her big fat checks will actually be kind of fun. :)
I can't actually think about it too much (that upcoming(!!) debt-freedom) or I start getting all over-emotional. I can't wait til the day I make my last payment and I can just sit down somewhere quiet and let it hit me that I have finally dug myself out of the hole. I'll probably cry my idiot head off. My monthly obligations will be down to less than one paycheck, which makes things possible that never would have been possible before. I could go down to half time. I could work somewhere for half what I make. I could actually quit entirely and live off Airbear (ha ha). While I don't plan on doing any of those things (although the last one sounds like a winner), it is incredibly empowering to know that my actions and hard work have opened up these doors for me. They're also safeguards, too. If I lost my job, we'd survive. We'd have to eat dinner at home, but that's about the only change we'd need to make. And in uncertain times that's an amazing thing to know.
Instead, my plan is to keep working and apply that entire second paycheck (and whatever's left of the first) to a series of savings funds. I have already spent time thinking about what these goals will be, since I was so broke that I couldn't afford to go out and do anything and had to entertain myself with excel spreadsheets. Ha ha. Anyway, check out the results, because the exercise was super fun. Once I am debt free, (imagine three thousand !'s) my goals are:
Savings Funds:
Little Emergency Fund/Short Term Savings - $1,000
Big Emergency Fund (Job loss, etc.) - $5,000 [1]
Car Replacement Fund (for "eventually") - $5,000
Laptop Replacement Fund (ditto) - $1,500
"Special Occasion" Fund - $3,000[2]
Laser Eye Surgery Fund - $2,000[3]
House Fund - $10,000[4]
Annual Contribution Goals:
Roth Contributions for 2009 - $5,000
Gift Money for 2009 - $800 (*blush* shut up, it's my money!)
Vacation Fund for 2009 - $1,500[5]
Tuition Account Contributions for 3 nephews for 2009- $180 ($5/month/kid)
I've looked ahead to what my budget/bill breakdown will be as well, and while I obviously cannot fund these accounts all immediately at the start of 2009, I could do monthly payments which will meet the tuition, gift, vacation, and Roth goals (yes, completely funding my Roth!) with the money that used to go to credit card debt payments. I will have to pick a few of the savings funds to focus on at a time so that I can snowball them and get them filled up fast and feel rewarded. Plus once they're full they just get to sit around and make interest and make me feel rich. The annual funds I'll have to keep replenishing all the time, because they'll get used, but still... do you know how amazing it is going to feel to be able to be saving ahead for those kinds of things? To know that I have the power to grow money to buy presents? To be able to snowball toward GOOD things instead of toward debt?
I can't imagine how you could feel any richer than that :)
[1] Believe it or not, this is more than six months worth of expenses for me. I'm making Airbear start one too. His should obviously be bigger, since he farts money.
[2] I'm not going to tell you what the occasion is, for jinx purposes. I think you can probably get creative and guess. It might take more than this, if a trip to Rio is involved. But this is a good start.
[3] Actually, (aaaaactually), Airbear can contribute to a pre-tax health account that we can use to spend on my eyeball surgery, once I figure out all the details, and that will help him out on taxes a bit and I can pay him back. Best part is he said he would like to pay for half of it :O :O :O !
[4] This one is kind of weird, I know. But nitza, you say, you already have a house! Well, I don't, Airbear does. And since we are not yet teh married, it's better this way. But I'd like to start tucking some money away for later. This fund takes a backseat to the others, but it's just been at the back of my mind. I might be able to contribute it to a down payment when we buy house #2 together, or something. Anyway, like I said... it's about options, now :)
[5] It probably won't get up that high during 2009, but then we'll just do the standard little vacations to mom's house, etc. one year, and leftovers can roll over each year so that we can do a Big, Fabulous Vacation from time to time. WITHOUT CREDIT CARDS!! (See how serious I was about that?) ;)
Friday, October 17, 2008
Monday, October 13, 2008
ZOMG!
Only two blessedly short days til payday. Doing really well on the non-spending, though... so far have made it 11/13 days spending $0 (yes I really mean $0)!!! Obviously I think this is a very big deal as I put several exclamation points at the end of it, which I usually detest. Plus I've gone out to eat exactly one time this month, which I'm pretty proud of. Airbear ordered take-out one other time, but a) he paid for it so I'm not counting it amongst the list of my No Eating Out (NEO) days over at the WIR thread. I'm also pretty amazed that Airbear was able to only want take-out once so far this month. Of course I haven't really been giving him that choice when I list the options for dinner.
Formerly: "What do you want to do for dinner?"
Answers: "(insert list of places to waste money eating out at)"
Now: "Do you want sloppy joes for dinner, or quesadillas?"
Answers: Surprisingly[1], "Sloppy joes." or "Quesadillas."
Progress!
[1] I say "surprisingly," because Airbear actually is smart enough to answer with an option that is not among a list of pre-determined choices. This means that he is smarter than an elementary school child, because this is a tactic recommended amongst classroom management experts for getting kids to do what you want while still allowing them to live under the illusion that they have power and independence. So I am surprised that Airbear has not[2] said, "Both", "Neither", and/or "Porkandbeans" just to be a pain in the rear.
[2] Well, he did one time say just "Yes." Men. They never change.
Formerly: "What do you want to do for dinner?"
Answers: "(insert list of places to waste money eating out at)"
Now: "Do you want sloppy joes for dinner, or quesadillas?"
Answers: Surprisingly[1], "Sloppy joes." or "Quesadillas."
Progress!
[1] I say "surprisingly," because Airbear actually is smart enough to answer with an option that is not among a list of pre-determined choices. This means that he is smarter than an elementary school child, because this is a tactic recommended amongst classroom management experts for getting kids to do what you want while still allowing them to live under the illusion that they have power and independence. So I am surprised that Airbear has not[2] said, "Both", "Neither", and/or "Porkandbeans" just to be a pain in the rear.
[2] Well, he did one time say just "Yes." Men. They never change.
Thursday, October 9, 2008
Dragging
Tired of waiting for payday.
Tired of hearing about the "bailout" and the "looming depression" and the terrible economy.
Tired of thinking about people who are irresponsible with money getting away with it.
Hate hate hate hate.
But it's Thursday, hooray!
Tired of hearing about the "bailout" and the "looming depression" and the terrible economy.
Tired of thinking about people who are irresponsible with money getting away with it.
Hate hate hate hate.
But it's Thursday, hooray!
Monday, September 29, 2008
Le Sigh....
So I got myself down to only $1000 left on the last credit card as of my last paycheck. I felt really great about that, and even though it meant that finances would be really tight until the next payday (today), I just tightened my belt and behaved really well financially and finally - finally - the glorious day arrived. Payday, phew.
Except my paycheck is pitifully, pitifully small. I received my annual bonus two weeks ago, and the way they do it here is to just give you the bonus check and then take the taxed for it out of your next paycheck. I have no idea why they don't just take it out of the bonus check immediately. Maybe they want the bonus to look bigger and more impressive, I don't know. But in any case, even though the bonus wasn't nearly as big as it was last year, all of the taxes on it came out of the check I just got today. So this paycheck is several hundred dollars smaller than usual.
Note that I am not being ungrateful for the bonus (I appreciate any extra money I get!); and it's not that I made a colossal financial mistake and will now be in trouble: the bills I have to pay during the first half of the month will still all be covered. But it *does* mean that I'll still be flat broke until next payday. No additional debt payments, no fun money, no going out to eat. Kinda took the wind out of my sails (Ha ha, when I first typed that I wrote "sales"). Because that's another long 17 days away. Ugh.
But hey, I've made it through that long without spending money before, I can do it again! And at least I'm "only" broke - even having zero dollars is much better than having to go into the red to pay for things. I won't have to make any late payments, I have a pantry full of food at home, it's at least not Christmas or something, and if something catastrophic were to happen I do have the cc's to fall back on. Of course I don't want to fall back on them, though. So I'll be doing all I can to not spend anything except for absolutely must-pay bills until my next payday. Maybe I'll even come online here and post the days that I can manage to spend $0.
Wish me luck, and try to help me not spend! :)
Except my paycheck is pitifully, pitifully small. I received my annual bonus two weeks ago, and the way they do it here is to just give you the bonus check and then take the taxed for it out of your next paycheck. I have no idea why they don't just take it out of the bonus check immediately. Maybe they want the bonus to look bigger and more impressive, I don't know. But in any case, even though the bonus wasn't nearly as big as it was last year, all of the taxes on it came out of the check I just got today. So this paycheck is several hundred dollars smaller than usual.
Note that I am not being ungrateful for the bonus (I appreciate any extra money I get!); and it's not that I made a colossal financial mistake and will now be in trouble: the bills I have to pay during the first half of the month will still all be covered. But it *does* mean that I'll still be flat broke until next payday. No additional debt payments, no fun money, no going out to eat. Kinda took the wind out of my sails (Ha ha, when I first typed that I wrote "sales"). Because that's another long 17 days away. Ugh.
But hey, I've made it through that long without spending money before, I can do it again! And at least I'm "only" broke - even having zero dollars is much better than having to go into the red to pay for things. I won't have to make any late payments, I have a pantry full of food at home, it's at least not Christmas or something, and if something catastrophic were to happen I do have the cc's to fall back on. Of course I don't want to fall back on them, though. So I'll be doing all I can to not spend anything except for absolutely must-pay bills until my next payday. Maybe I'll even come online here and post the days that I can manage to spend $0.
Wish me luck, and try to help me not spend! :)
Wednesday, September 17, 2008
Motivation
So like I said I was reading through the Women in Red message boards again yesterday.. it's a nice way to stay motivated when I've made payments and am just stuck waiting around until the next payday. Some highlights (lowlights? surprises?):
* A thread entitled "29 years old and 74,532.84 in debt"
* Someone 475k in debt (including house debt - although the one above doesn't)
* People out of jobs
*People who got blasted by unexpected expenses
* Financial websites/suggestions
* Awarding little smiley emoticons for progress paying off debts
* Easy cheap dinner suggestions
* Dealing with identity theft
* Monthly/weekly/etc. financial "challenges" like spending less than x dollars on groceries, or going more than 7 days without spending any money, etc.
* A student who is $24k in debt but makes $719 a month
* A husband of 17 years who won't work on eliminating their family's debt
But my favorites are the groups. There is one called the "Women in Red Racers" - all women who are 'racing' (against themselves, but they do post the 'rankings' as well) to pay down their debt. Some people only have like $500, some have $500k - some from houses, some from cars, some all on credit cards, some their fault, some not. But they all post (all the time!) and support each other, push each other, are accountable to each other. I only have about $5k left but I up and joined and so I'll be able to post and encourage other people and share advice for what's worked for me so far. It's really amazing what good things the internet can do, you know? These women are all so supportive of each other, and are really giving each other a good kick in the butt when needed too. It's awesome. And, as a whole group, the "Women in Red Racers" (WIRR) have paid off a combined five million dollars in debt in two years.
Isn't that unbelievable?!?!?
The "Women in Red Savers" is another group - I'm sure you can guess the purpose. I plan on joining them after I "win" and "graduate" from the WIRR. Then I can start working on becoming a millionaire!
* A thread entitled "29 years old and 74,532.84 in debt"
* Someone 475k in debt (including house debt - although the one above doesn't)
* People out of jobs
*People who got blasted by unexpected expenses
* Financial websites/suggestions
* Awarding little smiley emoticons for progress paying off debts
* Easy cheap dinner suggestions
* Dealing with identity theft
* Monthly/weekly/etc. financial "challenges" like spending less than x dollars on groceries, or going more than 7 days without spending any money, etc.
* A student who is $24k in debt but makes $719 a month
* A husband of 17 years who won't work on eliminating their family's debt
But my favorites are the groups. There is one called the "Women in Red Racers" - all women who are 'racing' (against themselves, but they do post the 'rankings' as well) to pay down their debt. Some people only have like $500, some have $500k - some from houses, some from cars, some all on credit cards, some their fault, some not. But they all post (all the time!) and support each other, push each other, are accountable to each other. I only have about $5k left but I up and joined and so I'll be able to post and encourage other people and share advice for what's worked for me so far. It's really amazing what good things the internet can do, you know? These women are all so supportive of each other, and are really giving each other a good kick in the butt when needed too. It's awesome. And, as a whole group, the "Women in Red Racers" (WIRR) have paid off a combined five million dollars in debt in two years.
Isn't that unbelievable?!?!?
The "Women in Red Savers" is another group - I'm sure you can guess the purpose. I plan on joining them after I "win" and "graduate" from the WIRR. Then I can start working on becoming a millionaire!
Tuesday, September 16, 2008
Bonus post
Oh yeah and I forgot to mention. Our school has not done their annual September "salary adjustments" yet, because the economy has been so poor and enrollments were down in July/August. They have also not given out bonuses. Now, it doesn't say anywhere that they have to give out bonuses, but they usually do, out of the annual profits from the company. My bonus last year was almost $5k. I was expecting about $50. I almost had a heart attack.
This year, though, no bonus so far...
...I am hoping that is not a permanent decision :[ Not that I was counting on one (or, certainly, one that big!), but if it happened once....
Keep your fingers crossed.
This year, though, no bonus so far...
...I am hoping that is not a permanent decision :[ Not that I was counting on one (or, certainly, one that big!), but if it happened once....
Keep your fingers crossed.
Monday, September 15, 2008
Wax and wane
I feel like my motivation is waning. Doesn't that seem wrong, that it should be tapering off right now when I've finally got my balances so low and am so close to my goals? It's irritating, but it's still true. I can feel the difference. I'm wanting to be lazy and go out to eat, and it's been awhile since I had one of those "$0" days. I am not out wasting money on useless crap or anything, but I'm definitely not feeling as fanatically devoted as I was. Or maybe I am when I think about it, but I'm just not thinking about it all the time.
I am not surprised that this is happening, really... I can be dedicated to something over the long term, in a rational way, or I can be insanely devoted to something for a short amount of time, but then get bored. This is why, early on, I told everyone I had to be so good. "You're doing great," some people said, "it's okay to reward yourself with a little splurge." Or "well you have to have some fun in the meantime, or you'll go crazy!" But really, I had to have NO fun and NO splurges and be REALLY good in order to get it down as fast as possible. That way I wouldn't run out of steam while the balances were still high enough to keep me in trouble.
Because I can see the light at the end of the tunnel, however, I know that I will be able to persevere! (I also started reading the Women in Red threads again on MSN, and even joined one called the "Women in Red Racers" where everyone is racing to pay down chunks of debt. I think it will be really motivating to get me through this last little bit! But more about that in a later post.)
So back to the update:
I am now down to one credit card (locked at 2.99% for life) and a debt I owe to my mom. That's it for consumer debt, which is my focus at the moment. We'll worry about school loans later (especially since I have to find out if there is a pre-payment penalty on them anyway).
Last cc: $1000
Mom: $4200
Total paid off since November 16, 2007: $22,085.52
I am not surprised that this is happening, really... I can be dedicated to something over the long term, in a rational way, or I can be insanely devoted to something for a short amount of time, but then get bored. This is why, early on, I told everyone I had to be so good. "You're doing great," some people said, "it's okay to reward yourself with a little splurge." Or "well you have to have some fun in the meantime, or you'll go crazy!" But really, I had to have NO fun and NO splurges and be REALLY good in order to get it down as fast as possible. That way I wouldn't run out of steam while the balances were still high enough to keep me in trouble.
Because I can see the light at the end of the tunnel, however, I know that I will be able to persevere! (I also started reading the Women in Red threads again on MSN, and even joined one called the "Women in Red Racers" where everyone is racing to pay down chunks of debt. I think it will be really motivating to get me through this last little bit! But more about that in a later post.)
So back to the update:
I am now down to one credit card (locked at 2.99% for life) and a debt I owe to my mom. That's it for consumer debt, which is my focus at the moment. We'll worry about school loans later (especially since I have to find out if there is a pre-payment penalty on them anyway).
Last cc: $1000
Mom: $4200
Total paid off since November 16, 2007: $22,085.52
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