It's been a while since I've posted, the summer has been a whirlwind of adventure and activity and to tell you the truth there hasn't been a ton of progress on the debt elimination front. Although, I am reaching the 9-month mark of no credit card use!
I realized today I have never figured out my net worth. I did a (rough) calculation today and I am in the positive net worth zone. Here is how it works out:
Assets: Car $8,000, House (equity) $7,000, Stuff (very rough estimate) $1,500, Savings $650, 401K $4,150.
Liabilities: Car Loan $3,332.96, Student Loans $13,022.47
Subtract liabilities from assets and my total net worth is: $4,954.57
Also worth noting, I updated my NCN chart and I have increased my percentage of pay-off by a couple points this summer, I'll take it!
Hope everyone is doing well with their financial goals and enjoying the journey.
September 19, 2009
May 25, 2009
Been doing some thinking...
I've been doing a lot of thinking lately about my original debt elimination focus. First and foremost was credit card debt, then car loan, then student loan followed by bulking up my emergency fund. But for a variety of reasons I believe it is in my best interest to rearrange my priorities.
My new plan of actions (which I will try until the end of August to see how it goes) is:
1.) Save for the summer activity expenses: wedding gifts, shower gifts, birthday gifts, road-trip to Wisconsin, PRH certification courses and exam. It all adds up but makes for a very fun and financially reasonable summer. Plus, I'm learning the value of being financially prepared for the "there's always something" expenses that will occur for the rest of my life. My guesstimate for the summer activity fund is $800. Not a bad investment for both my personal and professional life.
2.) Build emergency fund up to $3,000. I can't shake the possibility of the unthinkable, i.e. losing my job. If I lose my job I will likely look back and wish I had not used all my money to pay off debt that was not really costing me anything, i.e. my auto loan.
3.) Start contributing to 401K once again. At the point of having my emergency fund saved, I will feel more free to invest in my retirement and will be better able to contribute a much larger percentage of my income than before.
4.) Make large payments on student loans. I may try and do this simultaneously with building the emergency fund, I am saving myself money on interest by focusing on this loan and trying to pay it off early.
5.) Make regular payments on my auto loan and have it paid off by July 2010. Rejoice like crazy when it is paid and re-direct the extra $285.53/month to student loan debt.
Here are some reasons I've decided to switch my focus:
1.) I took care of all of the interest on my vehicle in the first few years of the loan, so it makes more sense to focus paying down debt with some interest saving potential.
2.) My part-time job has decreased an average of 2 hours per week ($20). I've found that I can manage this job long-term but that any more than 6-7 hours a week was starting to burn me out a bit. It's more advantageous for me to do something I can maintain and stick with it for a while. I also do not want my part-time job to affect my productivity at the "real job."
3.) Heck, variety is the spice of life and I think sub-consciously switching my focus will re-invigorate me.
Here's to the excitement of re-prioritizing!
My new plan of actions (which I will try until the end of August to see how it goes) is:
1.) Save for the summer activity expenses: wedding gifts, shower gifts, birthday gifts, road-trip to Wisconsin, PRH certification courses and exam. It all adds up but makes for a very fun and financially reasonable summer. Plus, I'm learning the value of being financially prepared for the "there's always something" expenses that will occur for the rest of my life. My guesstimate for the summer activity fund is $800. Not a bad investment for both my personal and professional life.
2.) Build emergency fund up to $3,000. I can't shake the possibility of the unthinkable, i.e. losing my job. If I lose my job I will likely look back and wish I had not used all my money to pay off debt that was not really costing me anything, i.e. my auto loan.
3.) Start contributing to 401K once again. At the point of having my emergency fund saved, I will feel more free to invest in my retirement and will be better able to contribute a much larger percentage of my income than before.
4.) Make large payments on student loans. I may try and do this simultaneously with building the emergency fund, I am saving myself money on interest by focusing on this loan and trying to pay it off early.
5.) Make regular payments on my auto loan and have it paid off by July 2010. Rejoice like crazy when it is paid and re-direct the extra $285.53/month to student loan debt.
Here are some reasons I've decided to switch my focus:
1.) I took care of all of the interest on my vehicle in the first few years of the loan, so it makes more sense to focus paying down debt with some interest saving potential.
2.) My part-time job has decreased an average of 2 hours per week ($20). I've found that I can manage this job long-term but that any more than 6-7 hours a week was starting to burn me out a bit. It's more advantageous for me to do something I can maintain and stick with it for a while. I also do not want my part-time job to affect my productivity at the "real job."
3.) Heck, variety is the spice of life and I think sub-consciously switching my focus will re-invigorate me.
Here's to the excitement of re-prioritizing!
May 3, 2009
Thanks, but no thanks...
I received a letter from PNC, the bank that owns my recently-paid-off credit card balance. The letter stated: "We are pleased to increase your credit limit to $12,000." Hmmm, could it be they noticed I haven't had any new transactions in months? That I have completely paid off the balance and plan on keeping it that way? That they will never ever again be able to reap the financial rewards of charging me interest?
You can't full me PNC Visa, I'm on to you. Thanks, but no thanks for the shady attempt to steer me once again down the debt path. I prefer the road less traveled.
You can't full me PNC Visa, I'm on to you. Thanks, but no thanks for the shady attempt to steer me once again down the debt path. I prefer the road less traveled.
April 29, 2009
April Financial Goals Update
It's been almost 2 months since my last goals update and a lot has happened since then. I'll start with the bad and end with the good.
Thumbs Down:
1.) $500 for unexpected car repair
2.) $350 for new tires, this was expected but not for another month or so...had to dip into the emergency fund a bit.
Thumbs Up:
1.) Paid off all of my credit card debt
2.) Began mega-payments on my auto loan, I put a $900 dent in the loan just a couple weeks ago.
3.) I am expecting my state income tax return in the next couple of weeks, this should get my emergency fund back up to $1,000.
4.) Haven't purchased anything with credit since January 2009.
As far as my deadlines for paying off all non-mortgage debt, my guess is that everything has been pushed back 2 months. It's still too early to tell how far off track my unexpected car repairs have put me. My original goal for the auto loan repayment was July, but I think September is more realistic.
As the weather is getting warmer, I find myself thinking about all the fun adventures the summer could bring; some prospects for a couple weekend trips will set me back a bit. I will forever struggle with the balancing act of paying off debt yet still allowing myself some freedom to enjoy life.
Here's hoping for another mega-payment on my auto loan in May!
April 12, 2009
Frugal Recipe: Poor Woman's Mocha
One of my methods of debt reduction is to eliminate unnecessary items. Number one on this list is gourmet coffee drinks. As a means of reducing the pain involved in eliminating this luxury, I buy gourmet coffee grounds and brew it at home for a fraction of the price. Below is a recipe for what I call "Poor Woman's Mocha". It is actually very simple, but I am surprised at how many people have commented on what a great idea it is, so here you go!
1.) One 8-12oz cup of coffee (I prefer Starbucks)
2.) Once packet of hot chocolate mix. (Aldi sells an 8-pack for $0.99)
3) 1/2 cup skim milk ( you could also use half and half or any other milk product)
4.) 1 tablespoon powdered creamer (Aldi sells a large container of this for $1.79)
Combine all ingredients, stir until dissolved, and enjoy! FYI, I find that one packet of hot chocolate mix goes a long way. Depending on how sweet you like your coffee, you can likely use one pack for 16-20oz of coffee.
April 3, 2009
Preparing for the worst...
What if I get laid off? It is a scary thought, I know. I've been re-affirmed at work that this will not happen and my job is secure...but this past week a co-worker was let go as a part of a reduction in force. Individuals are completely, utterly blind-sided when they are part of a reduction. And believe me when I say that I would not wish this on my worst enemy.
This experience has really encouraged me to prepare for the worst and put together an action plan for possible lay-off. If I were laid-off tomorrow (which wouldn't happen because it's Sunday, but you get the idea.) what would I do?
First, take into account that I have $1,000 in my emergency fund, I would receive 2 1/2 weeks of severance (enough to get me through almost 1 month of bills), and 5 weeks of PTO pay-out (enough to get me through 2 months of bills), I would also be eligible for 6 months of unemployment = to 60% of previous monthly salary.
I would:
1.) Stop all current debt-elimination goals and focus on stretching every penny I have to keep food on the table and a roof over my head.
2.) Stop going out to eat.
3.) Stop purchasing wine/alcoholic beverages.
4.) Stop all forms of entertainment.
5.) Cancel gym membership
6.) End cell phone plan and get a home phone (already have land-line established thru Zoomtown)
7.) Stay current on all bills
8.) Sell more items on Ebay (jewelry that is not of sentimental value, cd's, etc.)
9.) Pick up more hours at my part time job
10.) Purchase Anthem individual health insurance to stay minimally covered
11.) Cut back immensely on car usage (shouldn't be too difficult since commute to work is eliminated)
12.) Refrain from purchasing any non-essential items (clothing, make-up, shoes, etc.)
13.) Cook from scratch as much as possible.
14.) Lower thermostat and go without air conditioning this summer.
I'm keeping in mind that if I were to be laid off it could take several months to find another, comparable job and that my cut-backs would need to be somewhat long-term so that I could get back on track and continue with debt elimination once a new job is secured.
If I have no luck after 3 months of seriously looking for a new job, I would open myself up to looking for job opportunities outside of my chosen field of work as long as it took care of my monthly bills and provided health coverage. I would work at this job until I could secure something once again in my field.
I think my plan is solid. I am confident that I have at least 3-4 months worth of living expenses taken care of. I could put more into savings now, just to be safe, but I do not want to live in fear. I am determined to continue on through these uncertain times and learn as many life-lessons as I can along the way.
This experience has really encouraged me to prepare for the worst and put together an action plan for possible lay-off. If I were laid-off tomorrow (which wouldn't happen because it's Sunday, but you get the idea.) what would I do?
First, take into account that I have $1,000 in my emergency fund, I would receive 2 1/2 weeks of severance (enough to get me through almost 1 month of bills), and 5 weeks of PTO pay-out (enough to get me through 2 months of bills), I would also be eligible for 6 months of unemployment = to 60% of previous monthly salary.
I would:
1.) Stop all current debt-elimination goals and focus on stretching every penny I have to keep food on the table and a roof over my head.
2.) Stop going out to eat.
3.) Stop purchasing wine/alcoholic beverages.
4.) Stop all forms of entertainment.
5.) Cancel gym membership
6.) End cell phone plan and get a home phone (already have land-line established thru Zoomtown)
7.) Stay current on all bills
8.) Sell more items on Ebay (jewelry that is not of sentimental value, cd's, etc.)
9.) Pick up more hours at my part time job
10.) Purchase Anthem individual health insurance to stay minimally covered
11.) Cut back immensely on car usage (shouldn't be too difficult since commute to work is eliminated)
12.) Refrain from purchasing any non-essential items (clothing, make-up, shoes, etc.)
13.) Cook from scratch as much as possible.
14.) Lower thermostat and go without air conditioning this summer.
I'm keeping in mind that if I were to be laid off it could take several months to find another, comparable job and that my cut-backs would need to be somewhat long-term so that I could get back on track and continue with debt elimination once a new job is secured.
If I have no luck after 3 months of seriously looking for a new job, I would open myself up to looking for job opportunities outside of my chosen field of work as long as it took care of my monthly bills and provided health coverage. I would work at this job until I could secure something once again in my field.
I think my plan is solid. I am confident that I have at least 3-4 months worth of living expenses taken care of. I could put more into savings now, just to be safe, but I do not want to live in fear. I am determined to continue on through these uncertain times and learn as many life-lessons as I can along the way.
March 30, 2009
Accountability- When You Least Expect It!
I was at a happy hour on Friday and it was time to pay the bill. I pulled out my check-card and my best friend says "Where are your envelopes?". Uhhhhhh. Truth be told, I have not gotten paid from my part-time job for the hours worked last week. This money gets divied up and goes into my envelopes so I can pay strictly with cash for gas, food, and entertainment. No cash = no envelope system.
This is the first time in two and a half months I have gone sans envelope system. Sure, it's not great that I resorted to the check card, but the money does come directly out of my checking account and my transactions are limited. It's not like in previous months when I would check my online account balance obsessively to keep track of my transactions (here I go justifying things again:). Sure, I could have made a cash withdrawal and put that money into my envelopes, but honestly, I feel like these practices have become habits.
This habit has become so consistent, in fact, that people are taking notice and holding me accountable. Will I always use my envelope system in the future no matter what? You bet I will!
So here is my money memoirs advice for the day: Pay with cash and let them see you do it. Sometimes it is difficult to hold ourselves accountable 100% of the time, every once in a while we need the help of friends.
This is the first time in two and a half months I have gone sans envelope system. Sure, it's not great that I resorted to the check card, but the money does come directly out of my checking account and my transactions are limited. It's not like in previous months when I would check my online account balance obsessively to keep track of my transactions (here I go justifying things again:). Sure, I could have made a cash withdrawal and put that money into my envelopes, but honestly, I feel like these practices have become habits.
This habit has become so consistent, in fact, that people are taking notice and holding me accountable. Will I always use my envelope system in the future no matter what? You bet I will!
So here is my money memoirs advice for the day: Pay with cash and let them see you do it. Sometimes it is difficult to hold ourselves accountable 100% of the time, every once in a while we need the help of friends.
March 21, 2009
Financial Goals Update- March 2009
Time for a progress report on the financial goals I set at the beginning of 2009. Hard to believe we are almost a 1/4 of the way through the year!
1.) Emergency Fund- still intact at $1,000 and gaining interest. I have been pondering the idea of adding another $1,000 to it after I pay off my car this summer. The student loan pay-off will take a significant amount of time so it would be smart to increase the emergency fund...I'll revisit this idea in a few months.
2.) Credit Card Debt- If you read my recent post then you already know my credit card debt has been wiped out! Yay! I began accruing credit card debt when I started college (couldn't say no to the free t-shirts for signing up), which; hard as it is to believe, was about 10 years ago. Wow, almost a decade since I have maintained a zero balance on a credit card.
3.) American Honda Finance Auto Loan- My official balance as of today is $4,941.46 I had originally intended on beginning mega-payments on this loan in mid-March. But, in light of the recent vehicle repair, I have pushed back the start date to mid-April. This could potentially push back the final payment of my auto loan beyond July...makes me kind of sad because I wanted to celebrate this pay-off on my birthday. I am going to stick with this original pay-off date in mind though because great things are possible!
4.) Sallie Mae Student Loan- this still stands at $13, 350. My goal is to begin large payments immediately following the pay off of my Civic, somewhere in the July-September time frame. Also, my 2009 Federal Income Tax return (thinking way ahead here) will be applied towards this loan. Bottom line, I hope to have my student loan debt cut in half by this time next year.
I have to say I am delighted with my progress. There have been set-backs but I have been prepared for them all, what a difference a few months make!
Here's to what was before, what has been done to change it, and what will be in the future!
March 18, 2009
Oh Happy Day!
It's official. I am absolutely, positively, 100% credit card debt free!
How liberating! My credit card had a balance of $1,918, a $22 minimum payment and a 1% interest rate. I have been paying the minimum payment for the last couple of months until my federal tax refund check came in. I received the check on Saturday, it posted to my checking account yesterday, and the payment posted to the credit card today. When I logged onto my online account this afternoon I saw this $.00. What a sight for soar eyes:) Especially after the mild set-back last week. Also, I will be able to apply the $22 minimum payments to the mega-payments on my auto loan, which I will begin in April.
When I first started my debt elimination journey I contemplated the idea of a rewards system each time I met a goal, i.e. small purchase, ice cream, wine. Now I realize that the reward can be found simply in the feeling you get when you accomplish something amazing.
Here's to celebrating the extra little jolt I needed to keep looking ahead to the future and all the good that will come!
How liberating! My credit card had a balance of $1,918, a $22 minimum payment and a 1% interest rate. I have been paying the minimum payment for the last couple of months until my federal tax refund check came in. I received the check on Saturday, it posted to my checking account yesterday, and the payment posted to the credit card today. When I logged onto my online account this afternoon I saw this $.00. What a sight for soar eyes:) Especially after the mild set-back last week. Also, I will be able to apply the $22 minimum payments to the mega-payments on my auto loan, which I will begin in April.
When I first started my debt elimination journey I contemplated the idea of a rewards system each time I met a goal, i.e. small purchase, ice cream, wine. Now I realize that the reward can be found simply in the feeling you get when you accomplish something amazing.
Here's to celebrating the extra little jolt I needed to keep looking ahead to the future and all the good that will come!
March 16, 2009
Do you want the good news or the bad news?
Because I like to end each post on a high note, I'll start with the bad news. I took my car in last week because the dashboard fan was not pushing out any air. Silly, naive little me assumed it would be a quick fix and $100 in the worst case scenario. I received a call on Thursday from the repair shop with the news, $523.74 to fix it! OMG, I let out a little wimper when I heard the number.
Rest assured I cancelled my previous vacation plans immediately; my vacation likely would have cost about $500 and I cannot justify both fixing my car and going on an unnecessary vacation. I wasn't completely committed to this as I had not purchased a flight or booked a hotel.
Even though this news is a bummer, I'm so relieved I have the financial means to pay for it. If this were a few months ago, I wouldn't have thought twice about putting the expense on my credit card and paying interest on it...things are really changing for the better around here.
Now for the great news. I received my federal tax refund check in the mail on Saturday. I deposited it immediately and it should post to my checking account by the end of the business day today. Do you know what that means? Once the money is applied to my credit card balance I will be credit card debt free for the first time in a long time! No worries, I will dedicate a single post to this momentous occasion later in the week:)
Rest assured I cancelled my previous vacation plans immediately; my vacation likely would have cost about $500 and I cannot justify both fixing my car and going on an unnecessary vacation. I wasn't completely committed to this as I had not purchased a flight or booked a hotel.
Even though this news is a bummer, I'm so relieved I have the financial means to pay for it. If this were a few months ago, I wouldn't have thought twice about putting the expense on my credit card and paying interest on it...things are really changing for the better around here.
Now for the great news. I received my federal tax refund check in the mail on Saturday. I deposited it immediately and it should post to my checking account by the end of the business day today. Do you know what that means? Once the money is applied to my credit card balance I will be credit card debt free for the first time in a long time! No worries, I will dedicate a single post to this momentous occasion later in the week:)
March 8, 2009
Confessional: I planned a summer vacation
The further I get into my debt elimination journey, the easier it becomes to justify straying from the path. Becoming debt-free truly is a discipline.
In an earlier post I vowed to postpone vacationing for 12-18 months until the bulk of my debt is gone. But then I went and planned a summer vacation for July 2009. I have the opportunity to go on a short trip to Florida for a wedding this summer. The trip will probably cost $400-$500 when it's all said and done. I justified this decision by telling myself I will simply work extra hours at my part time job which will allow me to stick to my original debt-repayment schedule. After crunching the numbers I've determined I will have to work an extra 2.5 hours per week at my part time job to make up for the trip.
The bottom line is, I need to allow myself some flexibility (within reason). Am I the only debt eliminator who tells themselves it is better to stay at home on a Friday night and list items on Ebay than it would be to go out for dinner with friends? Probably not, surely we all deal with this internal struggle on a weekly and daily basis. But that is by no means any way to live.
I know I will continue to struggle with finding a balance and making decisions between snowflaking money or allowing myself a little nicety as a reward for my progress every once in a while. This part will definitely take time and will evolve as my journey continues. Making exceptions to my budget, of course, will not turn into a trend.
I can enjoy life and eliminate debt, I can and I will! Ahh, I feel better already. It's amazing how putting something down in writing really helps sort through it.
What are some of the financial exceptions you've made in your journey towards debt elimination?
In an earlier post I vowed to postpone vacationing for 12-18 months until the bulk of my debt is gone. But then I went and planned a summer vacation for July 2009. I have the opportunity to go on a short trip to Florida for a wedding this summer. The trip will probably cost $400-$500 when it's all said and done. I justified this decision by telling myself I will simply work extra hours at my part time job which will allow me to stick to my original debt-repayment schedule. After crunching the numbers I've determined I will have to work an extra 2.5 hours per week at my part time job to make up for the trip.
The bottom line is, I need to allow myself some flexibility (within reason). Am I the only debt eliminator who tells themselves it is better to stay at home on a Friday night and list items on Ebay than it would be to go out for dinner with friends? Probably not, surely we all deal with this internal struggle on a weekly and daily basis. But that is by no means any way to live.
I know I will continue to struggle with finding a balance and making decisions between snowflaking money or allowing myself a little nicety as a reward for my progress every once in a while. This part will definitely take time and will evolve as my journey continues. Making exceptions to my budget, of course, will not turn into a trend.
I can enjoy life and eliminate debt, I can and I will! Ahh, I feel better already. It's amazing how putting something down in writing really helps sort through it.
What are some of the financial exceptions you've made in your journey towards debt elimination?
February 15, 2009
Financial Goals Update- February 2009
It has been just over a month since I sat down and put a few short-term financial goals on paper. Below is a brief update on my progress...
I have not officially paid off my $1,950 credit card. I was a little slow on the draw submitting my federal tax refund paperwork. That being said, I am expecting $2,183 back from the Federal Government (hopefully arriving in the next week or so). This card has a 1% interest rate so I am not worrying too much about the extra interest.
I will be able to *Snowflake* $233 left over from the tax refund and apply it to my American Honda Finance payment for March! I am hoping between the regular payment of $285.53, plus the Snowflaked $233, plus recent Ebay sales, I will reach my goal of a $1,000 for my first super-sized car payment.
Hours at my part time job are picking up; I'm back to 8-10/week. This is great as it usually ends up being just enough cash to put into my envelope system for the week; gas, groceries, entertainment.
In addition to my debt-elimination goals, I have also refrained from using my credit card. I do have some occasional transactions on the check-card, but even those have decreased to 3 or 4 non-bill related items.
It is still a long road ahead, but month by month I will get there!
I have not officially paid off my $1,950 credit card. I was a little slow on the draw submitting my federal tax refund paperwork. That being said, I am expecting $2,183 back from the Federal Government (hopefully arriving in the next week or so). This card has a 1% interest rate so I am not worrying too much about the extra interest.
I will be able to *Snowflake* $233 left over from the tax refund and apply it to my American Honda Finance payment for March! I am hoping between the regular payment of $285.53, plus the Snowflaked $233, plus recent Ebay sales, I will reach my goal of a $1,000 for my first super-sized car payment.
Hours at my part time job are picking up; I'm back to 8-10/week. This is great as it usually ends up being just enough cash to put into my envelope system for the week; gas, groceries, entertainment.
In addition to my debt-elimination goals, I have also refrained from using my credit card. I do have some occasional transactions on the check-card, but even those have decreased to 3 or 4 non-bill related items.
It is still a long road ahead, but month by month I will get there!
February 14, 2009
Frugal Find: Freecycle Frames
I started using Freecycle about two years ago in order to accumulate free household items as I was preparing to move out on my own. If you are not familiar with Freecycle; I encourage you to visit their site, sign up with a group in your area, and start offering or accepting free items!
I don't utilize this program as much these days, but still regularly receive emails of "offer" posts. This past week a Freecycler was offering 5 8X10 black frames and I received them! It worked out pefectly as the pick up location was just a couple miles from work.
I am so excited! I think I will be using them in my dining room as I have a large wall that is in need of a substantial piece of artwork so it does not look so lonely. My 2008 calendar had beautiful pictures of flowers on it, they would look perfect in these frames.
I don't utilize this program as much these days, but still regularly receive emails of "offer" posts. This past week a Freecycler was offering 5 8X10 black frames and I received them! It worked out pefectly as the pick up location was just a couple miles from work.
I am so excited! I think I will be using them in my dining room as I have a large wall that is in need of a substantial piece of artwork so it does not look so lonely. My 2008 calendar had beautiful pictures of flowers on it, they would look perfect in these frames.
Voila! A completely free wall decoration:)
February 8, 2009
Keeping It Real
I was a bit hard on myself this week for exceeding my "Out to Eat/Entertainment" budget by $20. This has only been intensified by the fact that I haven't been able to get as many hours at my part-time job the past couple weeks due to inclement weather...which means even less money going towards paying down debt:(
Then I read this post by another personal finance blogger and it put things into perspective for me. It is so true that finding a balance between spending and saving really encourages you to stop and smell the roses.
I went over budget. But it's $20 and I can easily make up for it in the coming weeks; surely this blunder will not define my financial future. And just for the record (because I feel better about things when I can justify them:) the $20 was well worth it. I had a weekend filled with good times spent with family and friends.
Here's to another week of focusing on what is really important!
Then I read this post by another personal finance blogger and it put things into perspective for me. It is so true that finding a balance between spending and saving really encourages you to stop and smell the roses.
I went over budget. But it's $20 and I can easily make up for it in the coming weeks; surely this blunder will not define my financial future. And just for the record (because I feel better about things when I can justify them:) the $20 was well worth it. I had a weekend filled with good times spent with family and friends.
Here's to another week of focusing on what is really important!
February 3, 2009
Frugal Recipe- Strawberry Banana Smoothies, Yum!
This recipe is simple, delicious, healthy and frugal! I've broken down the out-of-pocket cost for you below.
1 medium banana (quite ripened)
6-8 frozen strawberries
1/3 cup of skim milk
Blend ingredients for about 30 seconds, poor into a beautiful glass, and enjoy! The trick is to use frozen strawberries thus eliminating the need to add ice which will water down the smoothie. Also, the natural sugar from the banana gives this all the sweetness it needs.
Aldi's price breakdown:
Strawberries- $0.57 a serving ($3.99/bag)
Milk- $0.08 for 1/3 cup ($1.99/gallon)
Bananas- $0.15/banana ($0.45/lb)
Bananas- $0.15/banana ($0.45/lb)
= $0.80/smoothie
Less than $1 for a yummy snack, could life get any better?
January 28, 2009
I'd Like to Dedicate this Post to Aldi!
For those of you not familiar with Aldi, it is a European-based supermarket chain located throughout the US that offers low prices on everyday grocery items. Aldi cuts advertising and convenience costs and in turn allows customers to save on groceries. I highly recommend following the link above and checking out their "Shopping Smarter" philosophy.
That being said, there is a short list of things you need to remember before making a trip:
1.) Aldi does not provide grocery bags- Go frugal, go green or go home!
2.) Bring a quarter with you. Carts are locked and you have to insert 25 cents in order to release it from the cart corral. But...when you return the cart you get your quarter back. You will never see a cart rolling aimlessly through the parking lot!
3.) Bring a list- in general this helps you save because you get only what you need. But, Aldi does not have everything so chances are you may need to hit another grocery store for those occasional items.
I'm on a mission to do 98% of my grocery shopping in 2009 at Aldi. My weekly budget for groceries is $25 and so far things are going well. I have been able to find everything I need, and you can browse every item the store has to offer in 30 minutes flat:) As I mentioned above, there are some items Aldi does not carry so the other 2% of my grocery shopping will have to be done at Kroger.
Even if you have to drive a little further, shopping at Aldi's is so worth it!
January 27, 2009
Where do you see yourself in 5 years?
I never will forget being asked this question during my first interview after college. At the time my answer to the potential boss was "Not here." Can you believe I said that? Can you believe they still hired me?
It is now 4 years later and I have changed employers twice since then. Just as I knew my career would eventually change, I also know my financial situation in 5 years will be very different than where it is today.
I would like to humor myself for a few minutes and tell you exactly where I see myself financially 5 years from now:
1.) No credit card debt, in fact I have not put anything on credit in over 5 years:) Although I do have a Discover Card hidden in my sock drawer in case of extreme, and I do mean extreme, emergency.
2.) Traded in my 2005 Honda Civic and paid cash for a new to me car.
3.) Established a cash emergency fund consisting of $5,000. This is enough to cover my basic monthly living expenses for at least 3 months if I should lose my job or have to cover a major expense, i.e. new roof, new furnace.
4.) Invest 15% to retirement every month. I plan on retiring earlier than average 25 years from now.
5.) Make double-payments on my mortgage every month and hope to have it paid off in the next 5-7 years. It is the only debt I currently have.
6.) During the early stages of my debt elimination I made the decision to temporarily suspend vacationing for 12-18 months. Since I have paid off all non-mortgage debt, I have made it a point to take a vacation every year to a city or country I have never visited.
7.) I GIVE like it's no body's business. Every month I am able to give 10% of my earnings to local charities and organizations within my community. This has been and will continue to be the most rewarding part of shaping my financial future.
Thanks for letting me tell you what I see in my crystal ball!
January 24, 2009
Frugal Find: Area Rug on Craigslist
I've been in my house now for a year and a half and have been on the prowl for an area rug for my dining room. I've looked at various stores and could never quite justify spending between $120-$200.
But...I decided to check out Craigslist because I've heard lots of great feedback about it. Can you imagine how surprised I was when I saw the posting for this area rug for $60? It was exactly (almost) like what I was looking for and for 1/2 to 1/3 of the price I would have paid at a retail store! I actually ended up paying $58, that was all I had on me in cash and I figured the seller would be somewhat flexible...and she was:)
I have a monthly budget of $10 for household items- so this just about uses half of my yearly budget in that category; and I am okay with that. This is something I've been considering for a while and I want to be able to continue to make my house look nice and make budget friendly improvements while I work on my debt elimination.
This is the first item I've ever purchased from Craigslist, but definitely will not be my last. If I'm in need of anything in the future Craigslist is the first place I will shop!
January 19, 2009
What...Now How
In an earlier post I detailed my 2009 Financial Goals. Now I would like to discuss how I plan on accomplishing these goals.
Let me preface this by mentioning my very average yearly salary from my full-time job; which is my way of saying that debt-reduction can be possible for anyone if you make it your priority...above average incomes are not required. Many of the steps were gleaned from advice given in Dave Ramsey's book "Total Money Makeover" and from a variety of frugal/debt reduction blogs I have visited over the past year. I highly recommend www.moneysavingmom.com for information on all aspects of living frugally!
Below are changes I have made regarding my income and spending habits in addition to ending credit card usage.
Step #1- Part-time J-O-B:
Several months ago I was offered an opportunity to make a few extra bucks and help out with a friend's cleaning company. Because I knew I could use the extra money I said "Sure!". Now 4 months later I average about 10 hours a week. It happens to work out that this "vehicle" to debt reduction was in place before I really even began my journey. This has been such a benefit to me because after all the monthly bills are said and done, I don't have a lot of extra money left over.
Step #2- Temporarily stop 401K Contributions:
This is something Dave Ramsey suggests. I have invested 6% for the past 2 years and I plan on being debt-free except for my mortgage in about 18 months. Temporarily stopping the 6% contribution allows me to pay off my debt considerably faster and then begin investing again in 12-18 months with at least 15%. If my debt payoff plan takes longer than initially determined, I will begin investing in 401K in 18 months no matter what.
Step #3 Back to Basics:
I do not necessarily consider this a debt-reduction technique as I do a debt-avoidance technique. By living fairly simply I will be able to steer off any future debt and stick to my monthly budget. Basics: No cable television, 200 anytime minute cell phone plan (I'm not a talker:), pack lunch everyday, limit going out to eat to twice weekly, Brita water pitcher, lower thermostat when I'm not at home, combine trips in my car, envelope budget system.
Step #4 Absolutely no sense of Entitlement:
Debt is debt is debt. In the past I have told myself "I work hard for my money, I deserve..." I believe this is the way most people find debt justifiable. It has been absolutely crucial for me to change my mindset when it comes to feeling a sense of entitlement. There is nothing I need or "deserve" so much that I am willing to go into debt for it.
Step #5 Weekly budgets:
As I mentioned in step #3, I have initiated a budget for my weekly expenditures using the envelope system. Some details- $20/week for gas, $25/week for groceries, $40/week for going out to eat/entertainment (for me these are inter-changeable). I also have a monthly budget for household bills, hair cuts, oil changes, etc. but thus far the weekly budget has really helped me gain back control of my money.
Step #6 Temporarily stop Vacationing:
As I considered ways to save I began putting together a list of activities that can sap a good month's worth of debt reduction. Vacations are one of these things; mainly because they are not a basic necessity and I've decided PTO time can be better spent investing in my house by making inexpensive improvements. I will be fine without taking a vacation for the next 12-18 months. I took a 5-week trip to Europe 4 years ago, if I feel like I deserve a vacation I will simply look at my photo album from the trip and reminisce!
Step #7 Be Unwilling to pay for Convenience:
I want to note that this is much easier for me to do because I am a one-woman show and have no direct responsibility for others. The following are some conveniences I am no longer interested in paying for: car wash, frozen prepared meals (trying my best to switch to homemade), coffee-shop coffee, workday lunches, bottled water, non-clearance clothing and the list goes on and on and on...
I have by no means done anything drastic to alter my habits. Save for the part-time job, it has really been a combination of small changes that have made and will continue to make the biggest impact. Another significant change is simply an increased awareness of where my money is going...and ensuring that the "disappearing act" stops! As I stated in my first post, a positive attitude is the only way to approach debt-reduction and quite possibly the best change I will make on my journey to financial freedom.
Keep on keeping on!
Let me preface this by mentioning my very average yearly salary from my full-time job; which is my way of saying that debt-reduction can be possible for anyone if you make it your priority...above average incomes are not required. Many of the steps were gleaned from advice given in Dave Ramsey's book "Total Money Makeover" and from a variety of frugal/debt reduction blogs I have visited over the past year. I highly recommend www.moneysavingmom.com for information on all aspects of living frugally!
Below are changes I have made regarding my income and spending habits in addition to ending credit card usage.
Step #1- Part-time J-O-B:
Several months ago I was offered an opportunity to make a few extra bucks and help out with a friend's cleaning company. Because I knew I could use the extra money I said "Sure!". Now 4 months later I average about 10 hours a week. It happens to work out that this "vehicle" to debt reduction was in place before I really even began my journey. This has been such a benefit to me because after all the monthly bills are said and done, I don't have a lot of extra money left over.
Step #2- Temporarily stop 401K Contributions:
This is something Dave Ramsey suggests. I have invested 6% for the past 2 years and I plan on being debt-free except for my mortgage in about 18 months. Temporarily stopping the 6% contribution allows me to pay off my debt considerably faster and then begin investing again in 12-18 months with at least 15%. If my debt payoff plan takes longer than initially determined, I will begin investing in 401K in 18 months no matter what.
Step #3 Back to Basics:
I do not necessarily consider this a debt-reduction technique as I do a debt-avoidance technique. By living fairly simply I will be able to steer off any future debt and stick to my monthly budget. Basics: No cable television, 200 anytime minute cell phone plan (I'm not a talker:), pack lunch everyday, limit going out to eat to twice weekly, Brita water pitcher, lower thermostat when I'm not at home, combine trips in my car, envelope budget system.
Step #4 Absolutely no sense of Entitlement:
Debt is debt is debt. In the past I have told myself "I work hard for my money, I deserve..." I believe this is the way most people find debt justifiable. It has been absolutely crucial for me to change my mindset when it comes to feeling a sense of entitlement. There is nothing I need or "deserve" so much that I am willing to go into debt for it.
Step #5 Weekly budgets:
As I mentioned in step #3, I have initiated a budget for my weekly expenditures using the envelope system. Some details- $20/week for gas, $25/week for groceries, $40/week for going out to eat/entertainment (for me these are inter-changeable). I also have a monthly budget for household bills, hair cuts, oil changes, etc. but thus far the weekly budget has really helped me gain back control of my money.
Step #6 Temporarily stop Vacationing:
As I considered ways to save I began putting together a list of activities that can sap a good month's worth of debt reduction. Vacations are one of these things; mainly because they are not a basic necessity and I've decided PTO time can be better spent investing in my house by making inexpensive improvements. I will be fine without taking a vacation for the next 12-18 months. I took a 5-week trip to Europe 4 years ago, if I feel like I deserve a vacation I will simply look at my photo album from the trip and reminisce!
Step #7 Be Unwilling to pay for Convenience:
I want to note that this is much easier for me to do because I am a one-woman show and have no direct responsibility for others. The following are some conveniences I am no longer interested in paying for: car wash, frozen prepared meals (trying my best to switch to homemade), coffee-shop coffee, workday lunches, bottled water, non-clearance clothing and the list goes on and on and on...
I have by no means done anything drastic to alter my habits. Save for the part-time job, it has really been a combination of small changes that have made and will continue to make the biggest impact. Another significant change is simply an increased awareness of where my money is going...and ensuring that the "disappearing act" stops! As I stated in my first post, a positive attitude is the only way to approach debt-reduction and quite possibly the best change I will make on my journey to financial freedom.
Keep on keeping on!
January 16, 2009
2009 Financial Goals- Better Late than Never!
What better way to begin my journey to financial freedom than with a few measurable goals to track during 2009:
1.) Establish $1,000 Emergency Fund
-As of today at 5pm this has been fully funded with $1,001:)
1.) Establish $1,000 Emergency Fund
-As of today at 5pm this has been fully funded with $1,001:)
2.) Pay off credit card debt- $1,950
-I consider this debt already paid off. I will receive my 2008 tax return in a few weeks and it will automatically be applied toward this debt.
3.) Pay off American Honda Finance auto loan by July 2009- $5,466
-My plan is to begin making larger payments on this loan by late February/early March. This will require a monthly payment of roughly $1,000 but I'm aiming high. July is my birthday month and I cannot think of a better way to celebrate than with a debt pay-off!
4.) Pay off $6,500 of my $13,455 Sallie Mae Student Loan
-After the car loan is paid in full it's on to Sallie Mae with my "super-sized" repayment plan. I will need to make roughly $1,200 payments for 5 1/2 months in order to have a nice chunk paid off by December 31, 2009.
I am being very idealistic in my approach; in my opinion a good attitude is the only way to approach debt pay-off. Although I have budgeted for unexpected items in my monthly budget, I certainly do not have the money on hand for something very expensive (furnace, for example) but I plan on doing what I can and dealing with the obstacles as they arise.
I am being very idealistic in my approach; in my opinion a good attitude is the only way to approach debt pay-off. Although I have budgeted for unexpected items in my monthly budget, I certainly do not have the money on hand for something very expensive (furnace, for example) but I plan on doing what I can and dealing with the obstacles as they arise.
Here's to a wonderful start to 2009!
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