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!

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.

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.