Windfall

So, I have been hesitant to post, as something lovely and unexpected happened to completely alter my financial landscape: a very generous holiday bonus. How much? $5,000. More than 10% of my annual salary. This was wildly unexpected and, while of course certainly appreciated and joy-inducing, not in the spirit of this blog, which was designed to track my progress slogging toward the goal of fiscal fitness slowly, methodically, and through great sacrifice and dedication.

I started this blog because I knew I could count on no one but myself to solve my problems. I wanted to put it all in writing and hold myself accountable. Laying out the financial picture for no one but me to read was designed to encourage me, provoke me, and, in the case of progress, elate me.

And now, suddenly, someone else has solved a huge portion of my financial difficulties in one fell swoop. I will have to elaborate on how this affects my fiscal worldview in another post; I can't quite wrap my mind around it at this moment. But for the time being, I will lay out how I have used my miraculous bonus to tackle my debt.

$1,139.56 to end my AMEX debt
$1,547.00 to fulfill my Smarty Pig LASIK savings goal
$1,525 to start a Vanguard Roth IRA Smarty Pig savings goal
$300 to start a registration/insurance Smarty Pig savings goal
$100 to start a Christmas shopping Smarty Pig savings goal

Total spent: $4,611.56
Leftover: $388.44

Thus, my credit card debt is *essentially* erased. As previously mentioned, my LASIK costs incur 0% APR on my BoA credit card until June 8, 2011. Thus, I have saved enough to pay off the debt once my 0% APR runs out, excepting my $19.00 a month in minimum payments. Rather than pay off the debt right now, I am letting the $1,748.00 earn 8.5 cents a day in interest in my Smarty Pig savings account. It's free money, why pass it up?

The $300 Smarty Pig account is actually designed to cover an onslaught of May 2011 expenses: car registration, AAA membership renewal, and renter's insurance. Last year these totaled $375. Thus, I plan to save at least that much before all these costs come due again in May.

The $100 Christmas account will earn a bit of interest until December (less than a penny a day, at this time) until I load it onto an Amazon e-gift card, which at Smarty Pig comes with a 3% cash boost, meaning if I load $100, I actually get a gift card with $103 on it. Again, free money. And because I don't get to fly home for Christmas until Christmas Eve, I usually do most of my shopping on Amazon and have it shipped to my parent's house, where it waits for me to arrive. Super convenient.

Smarty Pig rules. I cannot recommend it enough. (I am not compensated in any way for saying this.)

I will do a net worth update next post. But for now, know that the bonus has been put to good use. And I did allow myself  a few indulgences: drinks out with friends twice this month, buying lunch for a colleague, new curtains for the living room, and a charitable contribution. I am a very lucky girl.