Liabilities
Student Loan #1: $0.00
Student Loan #2: $0.00
Total debt: $0.00
Savings
Emergency fund: $8,084.56
Travel fund: $3,002.97
Personal fund: $2,501.35
Total savings: $13,588.88
IRA contributions to date: $3,500
Overall net worth: $17,088.88
Positive change since last update: $28,137.91
I can't talk about it, but a lot has changed. I am very, very, very grateful.
24 July 2011
18 April 2011
Pride before the fall
Sometimes. I look back at my old posts and want to punch myself in the face. My tone is just too congratulatory, too smug. I always tried to present my good news with humility, but as I find myself in much less flush circumstances, I want to tell my former self to shut the f#@k up. This also stems from my overall discomfort with blogging in general. If anyone were actually reading this, I don't know how I would reconcile my desire to share and my embarrassment at being so self-centered.
Currently, my animosity stems primarily from envy. I was saving and living frugally at the end of 2010. Unfortunately, 2011 has been a series of monetary surprises and poor decisions on my part. First, the $425 electric bill, and now a $325 car mechanic bill have put major dents in my emergency fund. I spent too much money on clothes a few months ago. Gas prices are mugging my pocketbook. I've already spent $198 on groceries this month (and seriously, I've bought little more than produce). I bought an unemployed friend some drinks one night. And just like that, I'm broke. Poop! I need a better salary.
Currently, my animosity stems primarily from envy. I was saving and living frugally at the end of 2010. Unfortunately, 2011 has been a series of monetary surprises and poor decisions on my part. First, the $425 electric bill, and now a $325 car mechanic bill have put major dents in my emergency fund. I spent too much money on clothes a few months ago. Gas prices are mugging my pocketbook. I've already spent $198 on groceries this month (and seriously, I've bought little more than produce). I bought an unemployed friend some drinks one night. And just like that, I'm broke. Poop! I need a better salary.
28 March 2011
Mess
If I had a flat tire at my last post, I've now spent the last month pushing the car up a hill. Or maybe selling the car parts for scrap? I'm not entirely sure how to work this metaphor effectively. Regardless, my finances are a mess. I haven't yet replaced the funds I swiped from my emergency fund last month. And I am operating at a deficit for the month of March. What the heck happened? I'm not really sure, to be honest.
I had a few atypical expenses this month, such as a haircut and a new lap suit. I also renewed my commitment to eating whole foods and tons of fruit and vegetables. No matter what anyone may claim, this is not a cheap way to eat. Eating like this turns my body into a furnace, running so efficiently on these phenomenal foods that I am constantly refueling with fresh berries, almonds, spinach, carrots, broccoli, tomatoes, beans, lentils, apples, mangoes, edamame, etc. The only cheap things on my current diet are the oats and legumes. I've spent over $250 on groceries this month. And I've still got three days to go. I'm not eating meat or dairy, which saves money, but cramming fresh fruit and veg down your gullet all day long still costs a pretty penny. Our food priorities in this country are completely askew; I could eat a lot cheaper at McDonalds. Gross.
I also still have two wedding gifts to buy. Ugh! I feel like there's just no easy solution at this point. My budget is built with very little wiggle room, and until I make more money, there's really nothing to be done. I have an emergency fund, so I won't ever carry a credit card balance. I am still putting $100 a month into that account and another $100 into my Roth IRA. But that's about all I've got right now. Unlike Charlie Sheen, I'm not currently WINNING.
I had a few atypical expenses this month, such as a haircut and a new lap suit. I also renewed my commitment to eating whole foods and tons of fruit and vegetables. No matter what anyone may claim, this is not a cheap way to eat. Eating like this turns my body into a furnace, running so efficiently on these phenomenal foods that I am constantly refueling with fresh berries, almonds, spinach, carrots, broccoli, tomatoes, beans, lentils, apples, mangoes, edamame, etc. The only cheap things on my current diet are the oats and legumes. I've spent over $250 on groceries this month. And I've still got three days to go. I'm not eating meat or dairy, which saves money, but cramming fresh fruit and veg down your gullet all day long still costs a pretty penny. Our food priorities in this country are completely askew; I could eat a lot cheaper at McDonalds. Gross.
I also still have two wedding gifts to buy. Ugh! I feel like there's just no easy solution at this point. My budget is built with very little wiggle room, and until I make more money, there's really nothing to be done. I have an emergency fund, so I won't ever carry a credit card balance. I am still putting $100 a month into that account and another $100 into my Roth IRA. But that's about all I've got right now. Unlike Charlie Sheen, I'm not currently WINNING.
20 February 2011
Flat tire on the journey
Ugh, what a month to have fallen off the frugality wagon. Just days after my last post, in which I was essentially patting myself on the back for completely unnecessary clothing consumption, the universe decided to slap me back into submission (humility) via my long-lost electric bill.
I opened my mailbox last night and was actually excited at the sight; the LADWP had finally gotten me back on the gird and I could stop wondering/saving/living in limbo. I had $250 in my Smarty Pig electric bill account, and as I opened the bill, I DARED to assume I might have something leftover. HAHAHA, the universe bellowed over my shoulder.
$424.69
What the?!?! I was NOT prepared for this. Ugh. And on what, you ask, have I spent nearly that amount in this month alone? Clothes and shoes. I feel a bit sick.
This was unexpected, and even if I had been more diligent in my calculations, I still don't think I would have been prepared. The bill covers almost 17 months of electricity. And I haven't seen a bill since I moved into my new apartment, where my average daily energy usage is apparently higher than my old place (the new apartment is bigger and has central A/C, so this shouldn't come as a surprise). In the old place, my average daily energy cost was under 50 cents; in the new place, it is 79 cents. This added up over the months and months I didn't see a bill.
$175 is coming out of my emergency fund to cover it. In fact, I already did the goal-to-goal transfer in Smarty Pig. (Transfer was instantaneous and so easy. I LOVE Smarty Pig.) I will put $100 of that back next month, and the remaining $75 in April (in addition to my regular monthly $100 contribution).
And I can pay the bill on my credit card, so at least I get x2 miles, or about $8 toward my next travel expense. Thank you, Capital One Venture.
Message received, universe.
I opened my mailbox last night and was actually excited at the sight; the LADWP had finally gotten me back on the gird and I could stop wondering/saving/living in limbo. I had $250 in my Smarty Pig electric bill account, and as I opened the bill, I DARED to assume I might have something leftover. HAHAHA, the universe bellowed over my shoulder.
$424.69
What the?!?! I was NOT prepared for this. Ugh. And on what, you ask, have I spent nearly that amount in this month alone? Clothes and shoes. I feel a bit sick.
This was unexpected, and even if I had been more diligent in my calculations, I still don't think I would have been prepared. The bill covers almost 17 months of electricity. And I haven't seen a bill since I moved into my new apartment, where my average daily energy usage is apparently higher than my old place (the new apartment is bigger and has central A/C, so this shouldn't come as a surprise). In the old place, my average daily energy cost was under 50 cents; in the new place, it is 79 cents. This added up over the months and months I didn't see a bill.
$175 is coming out of my emergency fund to cover it. In fact, I already did the goal-to-goal transfer in Smarty Pig. (Transfer was instantaneous and so easy. I LOVE Smarty Pig.) I will put $100 of that back next month, and the remaining $75 in April (in addition to my regular monthly $100 contribution).
And I can pay the bill on my credit card, so at least I get x2 miles, or about $8 toward my next travel expense. Thank you, Capital One Venture.
Message received, universe.
15 February 2011
Drat!
It's halfway through the month, and I have $128 left in my budget. And I still have to fill up the car with gas. Whoops! What happened?!?!
Well, let's start with the positive....
I opened my Vanguard Roth IRA!! I invested $3,000 in one of Vanguard's target retirement funds. And I am already obsessed with watching the daily ebb and flow. "My three grand earned $10 in one day?! Smarty Pig can't give me returns like that!" Then, 24 hours later, I'm crying, "Oh, crap, that $10 has shrunk down to $2 overnight." It's a roller coaster, and it's out of my control, but I'm totally loving the (potentially vomit-inducing) ride. Whheeee!!
Now, for the negative....
I rediscovered my love of shopping. Personal finance blogs used to be my daily addiction. Then I discovered outfit-of-the-day, fashion blogs. Wow, my wardrobe is OUT OF DATE. I do not endorse chasing trends and throwing out your entire closet every six months. However, I've been living at the opposite extreme, wearing black clothing that has turned gray and pants that are WELL over four years old. Moderation, even with regard to fashion, is key.
Thus, I have been focused on updating my outfits. I haven't thrown out or donated anything (yet) but am instead working on finding pieces that will integrate with the existing items and bring me into the 21st century--without breaking the bank. I am still waiting on a few Internet orders, and once they arrive I will begin the assimilation. After that, some culling may occur.
The "strategic updating" has set me back over $350 this month. My clothing budget is typically around $20 each month. I don't regret the money I have spent, but my completely rational self would rather have put the funds into my new Smarty Pig travel account ($150 so far) or my brand-spankin'-new IRA. However, being clothed in public is a requirement in contemporary American society. Being modern and comfortable and happy (and if I dare admit it a bit sassy) is just icing on the cake.
Well, let's start with the positive....
I opened my Vanguard Roth IRA!! I invested $3,000 in one of Vanguard's target retirement funds. And I am already obsessed with watching the daily ebb and flow. "My three grand earned $10 in one day?! Smarty Pig can't give me returns like that!" Then, 24 hours later, I'm crying, "Oh, crap, that $10 has shrunk down to $2 overnight." It's a roller coaster, and it's out of my control, but I'm totally loving the (potentially vomit-inducing) ride. Whheeee!!
Now, for the negative....
I rediscovered my love of shopping. Personal finance blogs used to be my daily addiction. Then I discovered outfit-of-the-day, fashion blogs. Wow, my wardrobe is OUT OF DATE. I do not endorse chasing trends and throwing out your entire closet every six months. However, I've been living at the opposite extreme, wearing black clothing that has turned gray and pants that are WELL over four years old. Moderation, even with regard to fashion, is key.
Thus, I have been focused on updating my outfits. I haven't thrown out or donated anything (yet) but am instead working on finding pieces that will integrate with the existing items and bring me into the 21st century--without breaking the bank. I am still waiting on a few Internet orders, and once they arrive I will begin the assimilation. After that, some culling may occur.
The "strategic updating" has set me back over $350 this month. My clothing budget is typically around $20 each month. I don't regret the money I have spent, but my completely rational self would rather have put the funds into my new Smarty Pig travel account ($150 so far) or my brand-spankin'-new IRA. However, being clothed in public is a requirement in contemporary American society. Being modern and comfortable and happy (and if I dare admit it a bit sassy) is just icing on the cake.
30 January 2011
Net worth update
Sometimes, I think I may have started this blog just to have a place for tracking my net worth progress. In addition to my beloved Excel spreadsheet. I love checking in on my progress! So let's do it again:
Liabilities
Student Loan #1: $10,189.46
Student Loan #2: $5,261.29
Total debt: $15,450.75
Savings
SP E-fund: $800.19 (yes, I moved it, long story for another post)
Ally E-fund leftover: $9.60
SP Roth IRA: $3,000.00
SP Car/Insurance: $350.87
SP Electric Bill: $216.06
SP Healthcare (just started this one): $25.00
Total savings: $4,376.72
Overall net worth: $-11,049.03
Positive change since last update: $2,405.10
Wow, that doesn't seem possible! It's largely due to my tax refund and my Christmas gifts, but also some hard work and frugal living thrown in for good measure. I am rather proud of myself.
Roth IRA!
Hmmm, I've been hiding again, because I've got more money to report that I didn't earn. I was able to contribute an extra $600 to my Smarty Pig IRA savings account this month, thanks to Christmas presents from family members. I am sooo grateful for the generosity of the people in my life, but I worry about windfalls, as previously discussed. The long slog is the only way out, so I don't want to get too used to these random and rare outside interventions.
I also received my federal and state tax refunds this week, which I've thrown into my Smarty Pig IRA account as well. Thus, I have already managed to hit the magic number of $3,000, the minimum needed to make the initial investment in a Vanguard target retirement mutual fund. I plan to open my Roth IRA this week, and I am super excited.
However, an irrational and unproductive desire to "time the market" has started weaseling itself into my brain. The DJIA dropped on Friday, by over 150 points, and my brain already wonders: "Should I buy first thing Monday morning, before price climbs again?" and conversely "Could the downward trend continue?" UGH! This is stupid thinking, and I cannot predict the future. But the thoughts continue.
I understand that trying to time the market should not factor into retirement savings. And I plan to make $100 automatic contributions to my Roth IRA each month, so as to dollar cost average and take timing out of the equation, but this initial $3000 investment is just screaming to be timed. I can't help myself.
Regardless, I'm going to bite the bullet and invest this week. This is my first ever investment, and I am really pleased about it. Some financial experts and personal finance bloggers would disagree with my decision to start investing before getting my emergency fund up to 3-6 months of living expenses, but the earlier we start our retirement accounts, the more benefit we see from compounding interest and a long history of contributions. I am 30.5, and I wish I'd been fiscally aware years ago, but I wasn't. I can't undo the past, but I would like to make up for lost time. Thus, I just don't want to wait any longer to start my Roth IRA. I am quite content with this decision, but as they say, this is why personal finance is personal.
I also received my federal and state tax refunds this week, which I've thrown into my Smarty Pig IRA account as well. Thus, I have already managed to hit the magic number of $3,000, the minimum needed to make the initial investment in a Vanguard target retirement mutual fund. I plan to open my Roth IRA this week, and I am super excited.
However, an irrational and unproductive desire to "time the market" has started weaseling itself into my brain. The DJIA dropped on Friday, by over 150 points, and my brain already wonders: "Should I buy first thing Monday morning, before price climbs again?" and conversely "Could the downward trend continue?" UGH! This is stupid thinking, and I cannot predict the future. But the thoughts continue.
I understand that trying to time the market should not factor into retirement savings. And I plan to make $100 automatic contributions to my Roth IRA each month, so as to dollar cost average and take timing out of the equation, but this initial $3000 investment is just screaming to be timed. I can't help myself.
Regardless, I'm going to bite the bullet and invest this week. This is my first ever investment, and I am really pleased about it. Some financial experts and personal finance bloggers would disagree with my decision to start investing before getting my emergency fund up to 3-6 months of living expenses, but the earlier we start our retirement accounts, the more benefit we see from compounding interest and a long history of contributions. I am 30.5, and I wish I'd been fiscally aware years ago, but I wasn't. I can't undo the past, but I would like to make up for lost time. Thus, I just don't want to wait any longer to start my Roth IRA. I am quite content with this decision, but as they say, this is why personal finance is personal.
05 December 2010
Bye bye, Chase
Well, I've been doing some research into checking account fees, and man, they are everywhere! I wish I could do an all-online account (Capital One has 1.01% APY on their checking accounts!) but without the luxury of direct deposit, I just can't make it happen. So I had to find a brick-and-mortar bank with ATMs I could shove my paycheck into every two weeks.
I must be very lazy, because my criteria for looking into brick-and-mortar banks was those with locations near my workplace. Chase has a location across the street, but their fees are offending me, so I looked into my other options. These included Citibank, US Bank, and Bank of America. In the end, I decided on BoA's e-banking checking account, which doesn't levy a fee if you make deposits and withdrawals at an ATM and elect to receive electronic statements. They also allow you to visit a teller for free when you need a service the ATM cannot provide (coin deposits/withdrawals, cashier's checks).
I am pleased with my decision. I can still walk down the block to deposit my paycheck the day I receive it. I don't have to make a certain number of debit card purchases or keep a minimum account balance. My oldest credit card account is with BoA (10 years) and I've never had a problem with their customer service.
I have no misgivings about leaving Chase. In fact, I'm thinking of closing my credit card with them, too. But that's because I just applied for a Discover More Card, which offers $100 cash back if you spend $500 in the first three months. Easily done, and free money. Now, my struggle with which rewards cards to keep is fodder for another post!
I must be very lazy, because my criteria for looking into brick-and-mortar banks was those with locations near my workplace. Chase has a location across the street, but their fees are offending me, so I looked into my other options. These included Citibank, US Bank, and Bank of America. In the end, I decided on BoA's e-banking checking account, which doesn't levy a fee if you make deposits and withdrawals at an ATM and elect to receive electronic statements. They also allow you to visit a teller for free when you need a service the ATM cannot provide (coin deposits/withdrawals, cashier's checks).
I am pleased with my decision. I can still walk down the block to deposit my paycheck the day I receive it. I don't have to make a certain number of debit card purchases or keep a minimum account balance. My oldest credit card account is with BoA (10 years) and I've never had a problem with their customer service.
I have no misgivings about leaving Chase. In fact, I'm thinking of closing my credit card with them, too. But that's because I just applied for a Discover More Card, which offers $100 cash back if you spend $500 in the first three months. Easily done, and free money. Now, my struggle with which rewards cards to keep is fodder for another post!
03 December 2010
Free checking, a thing of the past
Well, I've finally been cornered by the fee-based checking account. Chase sent me a letter informing me that my checking account will now come with a $12/month fee, unless I meet one of the following requirements:
Have one direct deposit of $500 or more made into my account each month.
Keep a minimum balance of $1,500.
Keep an average balance of $5,000 in my checking account AND a "qualifying" deposit or investment account linked to the checking account (who knows what a "qualifying" account would be).
Pay $25 each month in other Chase checking-related fees.
The simple solution would be direct deposit. Sadly, my small company does not offer this. The next solution would be to move money out of a savings account and hold it in my checking account, to meet the minimum $1,500 balance. This is not appealing. I'd much prefer seeing that money earning interest rather than lying like a lump in my checking account, doing nothing but staving off a rude and ridiculous service charge.
So, I did a little research. Turns out the Chase Total Checking account I am being rolled into is not the most basic option available to me, although the letter I received from Chase certainly makes it appear this way. After speaking with a telephone operator who didn't know what was going on, then IMing with an online support specialist who seemed to, I learned I can switch to a Chase Basic Checking account, which carries a $6/month fee that is waived by meeting one of the following requirements:
Have one direct deposit of $500 or more made into my account each month.
Make 5 debit card purchases per month.
I think we have a winner. I can make 5 debit card purchases each month; I come close to this anyway, at the grocery store, when I need cash for laundry or swimming. And if I don't meet the requirement naturally each month, I will just buy my last set of groceries individually, paying for each item separately with my debit card. Sounds like a plan. I would rather put these charges on my credit card, which has rewards, but I think I can find a way to minimize the damage here.
However, this fee-based checking account phenomenon is quite disconcerting. Thus, I am researching other options. The main problem is my employer's inability to provide direct deposit. If that happened, I would just open an ING Electric Orange checking account. I mean, that thing has interest! Maybe I will open one anyway, to feel it out and decrease my reliance on Chase. If could stand the waiting between getting my paycheck and seeing it post to my account (as it meanders through snail mail) it could work. Although it makes me incredibly nervous to rely on the USPS every two weeks to keep me solvent. Seems I would need to keep a brick-and-mortar account, like Chase, to make ATM deposits each pay period. Then I could transfer the money into ING after it posts. This is an extra complication, but I'm sure I could handle it. Hmmm, this is a head-scratcher. I will continue to mull it over.
Have one direct deposit of $500 or more made into my account each month.
Keep a minimum balance of $1,500.
Keep an average balance of $5,000 in my checking account AND a "qualifying" deposit or investment account linked to the checking account (who knows what a "qualifying" account would be).
Pay $25 each month in other Chase checking-related fees.
The simple solution would be direct deposit. Sadly, my small company does not offer this. The next solution would be to move money out of a savings account and hold it in my checking account, to meet the minimum $1,500 balance. This is not appealing. I'd much prefer seeing that money earning interest rather than lying like a lump in my checking account, doing nothing but staving off a rude and ridiculous service charge.
So, I did a little research. Turns out the Chase Total Checking account I am being rolled into is not the most basic option available to me, although the letter I received from Chase certainly makes it appear this way. After speaking with a telephone operator who didn't know what was going on, then IMing with an online support specialist who seemed to, I learned I can switch to a Chase Basic Checking account, which carries a $6/month fee that is waived by meeting one of the following requirements:
Have one direct deposit of $500 or more made into my account each month.
Make 5 debit card purchases per month.
I think we have a winner. I can make 5 debit card purchases each month; I come close to this anyway, at the grocery store, when I need cash for laundry or swimming. And if I don't meet the requirement naturally each month, I will just buy my last set of groceries individually, paying for each item separately with my debit card. Sounds like a plan. I would rather put these charges on my credit card, which has rewards, but I think I can find a way to minimize the damage here.
However, this fee-based checking account phenomenon is quite disconcerting. Thus, I am researching other options. The main problem is my employer's inability to provide direct deposit. If that happened, I would just open an ING Electric Orange checking account. I mean, that thing has interest! Maybe I will open one anyway, to feel it out and decrease my reliance on Chase. If could stand the waiting between getting my paycheck and seeing it post to my account (as it meanders through snail mail) it could work. Although it makes me incredibly nervous to rely on the USPS every two weeks to keep me solvent. Seems I would need to keep a brick-and-mortar account, like Chase, to make ATM deposits each pay period. Then I could transfer the money into ING after it posts. This is an extra complication, but I'm sure I could handle it. Hmmm, this is a head-scratcher. I will continue to mull it over.
25 November 2010
Thankful
Happy Thanksgiving, void. I am so grateful for the financial changes of this year; thankful that I realized what mistakes I was making, and thankful that the knowledge I needed to right those wrongs could be found in the personal finance blogs of others. And of course, I am thankful for the windfall that made so many of my financial dreams come true and accelerated my progress beyond my wildest dreams. But windfalls cannot be counted on, and should never be expected. Thus, I look to the future knowing that only hard work, sacrifice, and dedication will bring my financial goals to fruition. No one can fix this but me. And I have to say, I am thoroughly enjoying the journey!
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