Paying For My Past

You Gotta Celebrate the Little Things!

2012-01-28T08:57:00.001-06:00

Day after day, in this journey that seems more snail-like than gazelle-intense, you gotta celebrate the small victories. And today, I'm happy because the Chase #1 has fallen below the $4K mark!!

The account is closed so the only place it can keep going is down. It's closed because I didn't want to accept a change in terms so closing the account locked in a 6.99% fixed rate.

Total debt reduction for January was $935.71 which isn't too far off my goal of $12K for the year. I do need to pick up the pace a little bit. But January was tight ----then again, which month isn't tight? Anyway...today I'll be content in knowing that I've reached another milestone with the Chase #1 card and keep plugging toward the finish line.

Feeling too Lazy to Save a Few Pennies

2012-01-21T10:08:00.001-06:00

Yes...I know the cost of first class mail goes up to $0.45 tomorrow.

Yes...I also have a package I need to mail to my parents.

Why am I having so much trouble convincing myself to get to the post office this morning to stock up on Forever stamps???

I don't use nearly as much postage as I used to. I guess we're all contributing to the demise of the Postal Service with online bill pay. But I still could save a few pennies if I would just go buy some stamps today!!!

Big Gamble, Big Payoff!

2012-01-18T18:20:00.000-06:00

I'm not one normally to belly up to the roulette wheel, but that's how I felt when I signed up for the new high-deductible health insurance plan and Health Savings Account last September.

The facts changed a little bit after I wrote that post, but here is how it played out. Our family switched to a high-deductible ($6,000 per year) health insurance on September 1. We had already met $1,500 of our deductible during the first 8 months of 2011, so we essentially had a $4,500 deductible for the remainder of the year. My employer puts $87 a month in a Health Savings Account for us, and because of a glitch, I was putting in $1,025 per month for those last four months. Switching to the new plan reduced my expense for family coverage by $225 per month, and I was able to remove the line for "medical expenses" from my budget since everything can come out of the Health Savings Account now. It makes an even greater difference in the bottom line since it's all paid with pre-tax dollars now.

Honestly, I had to take a lot of deep breaths. It was hard switching from the traditional co-pay for office visits and prescriptions to paying the whole bill (up to the deductible). But I also knew that if I could pull this off, it would go a long way toward an orthodontist bill looming in my future.

The 10-year old and I went for an initial consultation back in October. The orthodontist wanted her to lose at least four more baby teeth and said we could start the whole process within 1-3 years. He quoted us a range of $4,800-$5,300. Our dental insurance will cover $1,000 of that. But the thought of adding another $300-$350 monthly payment to our already tight cash flow was enough to give me heart palpitations.

As it all turned out, NO ONE had any emergencies during those four months. We were able to pay for my husband's monthly prescriptions and a couple of office visits out of pocket.....and yes, we searched the internet and found an awesome discount for 12 months on his ADD medicine. He was "encouraged" to get a CT Scan when he went in for a sinus infection, but decided against it knowing that we would be footing the bill for the entire procedure. As it turned out, antibiotics took care of the sinus infection and the CT was really not necessary. (Don't get me wrong.....I totally understand why physicians practice defensive medicine....I see their liability insurance premiums eat up a third or more of their collections). But putting the choice to purchase medicine back in the consumer's hand puts an end to unnecessary tests ---- or at least it will in this house!

Anyway....off my soapbox....end of the story is that my Health Savings Account now has a balance of $4,450.06. (Yes, it earns a few pennies of interest --- also totally tax free). We started over with a brand new $6,000 deductible on January 1, and we will be contributing the maximum of $6,250 to the account during 2012! I feel like I'm Home Free!!!

And that $4,450? When the 10-year old gets the metal on her teeth, I can stroke a check for the whole thing!! Is that awesome or what?

Final Update - 2011 Net Worth Funding Goals

2012-01-15T09:19:00.000-06:00

Finally got this spreadsheet updated for everything!! This is just my spreadsheet for items I consider to be long-term net worth. It does not includes money set aside for future expenses (like house repairs) or money I had to spend out of those expense accounts (like that $2,100 transmission that came out of the car fund). It also does not include changes in market values of stocks or real estate that I have no control over. This is just a snapshot of money I chose to contribute to "long-term wealth."

As you can see from the two negative totals (Rental E-fund withdrawals and the HELOC), this sure would have been alot prettier without that $5,300 assessment from the rental property's HOA! But it is what it is, and we can only hope for more positive progress in 2012.

Now I need to get ready for dd10's party! There's no school tomorrow, so she's having 5 girls sleep over tonight. Maybe I should just load up on caffeine, and wait to clean after they leave???

ING's IRA Offer - might be just the boost I need!

2012-01-14T09:02:00.000-06:00

Remember when I started listing my 2012 goals? I really never finished the list, but I know that my retirement savings needs to be pushed to the top of the list despite the debt levels. The debt will pay itself off...eventually. But you can never go back and make up those years you missed contributing to a retirement account.

Yesterday in the mail, I received a postcard from ING with a little sweet offer attached. Open an IRA (Savings or CD) and make a $500 minimum deposit before January 31, 2012 and they'll add a $50 2012 contribution to your account just a couple of weeks later. Now I'm the first to admit that keeping money in a savings account earning 0.80% or a CD earning 0.50% is not going to go far towards funding retirement. But, I do have a Sharebuilder Roth IRA (it's SO easy to transfer between my ING and Sharebuilder accounts!). And since my gut feeling is that the market is heading for a correction, I'm happy to keep my money in cash until some of those stock valuations get a little more reasonable. And to get a 10% bonus on top of the money I put in? Sweet deal in my book!

Check it out! www.retiremyway.com/50

Where do you save for college?

2012-01-08T09:08:00.000-06:00

I'm the first to admit that the college savings accounts for my kids (ages 10 and 6) are kind of pitiful. The 10 year old has barely $8K, and the 6 yr. old around $2,400. Since they were started they've been in an equity income mutual fund which has pretty much stayed flat the past 5 years. I was also informed a couple of months ago that the mutual fund company is no longer accepting new contributions into the ESAs (Education Savings Accounts). With a maximum contribution of $2,000 per year scheduled to go back down to $500 per year at the beginning of 2013, I guess it's not worth the hassle for the mutual fund company to service these types of accounts.

So what do I do with the $200 or $300 of (birthday/Christmas/extra) money? Believe me I know it's not nearly as much as it should be. But I don't want to squander what little bit they have either!!

I'm just starting to research ETF's --- specifically dividend-paying ETF's ---- ones that focus on solid companies that have a track record of increasing their dividend payout year after year. I know nothing about ETF's .... really don't know if I'll like them better than mutual funds (I'll spare you my rant on my distate of mutual funds and their annual fees wiping out all your profits year after year).

So I'm just wondering.....where do you save for college?

One (almost) crossed off before I could even post it!

2012-01-03T21:06:00.004-06:00

I still haven't set all my goals for 2012 (I was trying to come up with 12 of 'em just to be cool like the rest of you *wink*). But I had scratched a few down:

1. Shave $12,000 off the total debt.

2. Add $6,000 to the Roth. Yes...it's sad, but I will be eligible for a catch-up contribution by the end of 2012. I remember when catch-up contributions were first introduced and thinking they were for OLD people!!!

3. Get through the year without any additional borrowing.

4. Save up enough cash to pay for a new computer.

5. Get (and keep) caught up on paperwork.

6. Continue to coupon to keep the grocery budget in check.

7. Write down my menu plans (instead of keeping them in my head). If I write down each night's dinner on a calendar, this time next year I can just pull out the calendar pages for an instant menu plan!

8. Continue to declutter the house. Think seriously about a yard sale in the Spring.

And that's as far as I got....

But today I received news that I might be able to knock one of these off my list sooner rather than later!

Our office administrator came in this morning and reminded me that this Thursday marks the 25th anniversary of my date of hire. 25 years!! Unbelievable!

Anyway, our firm always gives a length of service award for each 5 years. I've gotten pearl earrings, a gorgeous sapphire necklace, a set of antique ruby-glassware dishes, and a Movado watch for my other gifts. With the exception of the earrings (my 5-year gift), I was always consulted and allowed to pick what I wanted. Anyway...for the 25 year mark, my spending limit is $1,250. And I'm not allowed to take it in cash - which is fine because if it's given for service it's a non-taxable gift.

She asked me what I wanted, and it didn't take me long to figure out that I could probably get a really nice new computer for $1,250.

So, she talked to our I.T. guy and he's going to help me order a brand new Dell machine --- we'll probably order it through the business account which is fine since that will probably mean I can just order it to include all the Microsoft Office software. Even though I knew this milestone was approaching, I hadn't given it more than a passing thought before today. Usually the service awards are given at the summer picnic, so thinking I might be picking out a gift anytime soon hadn't crossed my mind. But we have a firm meeting Friday, and the office administrator said they would like to acknowledge it during the meeting. I am so excited! My pitiful little computer will be 8 years old in May! Bless her soul, she's been a little workhorse. But she's tired and loaded down. She needs a break (I'll probably give her to the kids).

This also means that I really need to get cracking on #5. I need to get all the Money software, spreadsheets, etc. updated since I'm pretty sure that Microsoft Money 2004 will not be available on my new machine. LOL

My New Daily Mantra

2011-12-13T17:53:00.000-06:00

Several years ago during one of my crazy busy "seasons" of life, someone told me that when you don't have time at home to deal with much else (usually this is because of work), to focus on "Dinner, Dishes, & Duds." I quickly adopted this little saying to make sure that in spite of what else is going on, we always eat, have a clean kitchen, and clean clothes to wear.

In light of trying to form a new habit by the end of the year, I've modified it. Now it's:

Dinner, Dishes, Duds, and DESK!

21 Days to an Organized Desk - Coupons

2011-12-11T12:04:00.011-06:00

Thanks for following along with my goal of 21 Days to an Organized Desk.

First item to tackle are the coupons. You probably already know I'm an avid couponer. I'm definitely not an Extreme Couponer, but coupons are part of my shopping routine.

With our busy, crazy life, I don't have time to clip and file every single coupon from each Sunday's paper. I used to, but years ago realized a better system for my limited number of hours to utilize coupons. I file my Sunday inserts in a plastic file box. Each Sunday gets its own file folder.

I make my shopping lists (for sale items to stock up on) from browsing blogs that highlight the sale items with matching coupons. These lists will tell you from which Sunday paper to find the coupon. Two of my favorites are Passionate Penny Pincher and Faithful Provisions since they both highlight stores in my area. It definitely helps to follow a blog that covers the stores and sales in your region. If you're new to couponing, the lingo might be a little foreign. Take the time to check out online tutorials to help you learn quickly.

So then, what about coupons that come in snail mail? Or printed online? or Store Catalinas? or Walgreens Register Rewards and CVS Extra Bucks? No doubt, these present more of an organizing challenge for me. If they can only be used at a particular store, I will keep them in an envelope designated for that store. These envelopes reside in my purse, so I always have them with me when I'm out shopping. If they are for items that could be purchased anywhere, I keep them in a separate envelope. I don't print every single coupon available, only ones I think I might use. And if I'm regularly (i.e. weekly) purging my expired coupons, I have a pretty good idea of what coupons I have in case I see a new deal for that item.

How do you organize your coupons?

21 Days to .... a More Organized Desk

2011-12-11T10:27:00.005-06:00

They say it takes 21 days of doing something repeatedly for it to become a habit. I've decided to take the last 21 days of 2011 to try to develop the habit of cleaning my desk off daily! As you can see right now, my desk is one HOT MESS!!!

Unprocessed mail
Grocery lists
Receipts
Coupons
Some Lego pieces (I promise, those are NOT mine!)
Who knows what else is lurking in there that needs to find a home

So, starting today....I put all incoming papers (mail, papers from school, receipts from my purse, coupons and other things I've printed) in that basket in front of the lamp. By the end of the day, the basket needs to be emptied and each piece of paper needs to have found a home.

If I can make this a habit in the next 21 days, I'll be starting the New Year off on a good note!

Is there something you'd like to focus on for the next 21 days?

Another Gift Idea

2011-12-02T11:10:00.002-06:00

I've decided to pass along deals I find as I'm still in shopping mode....and always on the hunt for a bargain price.

Here is one I snagged this morning:

$14.99 (including shipping) for 10 Classic Hardcover Books

My kindergartener will be reading VERY soon. The books in this set that we already have will make great contributions to the school or to my "gift stash." The rest I'll put under the tree for him to expand his library.

Sweet Deal at Amazon - HURRY! Today Only!

2011-12-01T19:20:00.003-06:00

I'm not nearly finished shopping, but I did get my daughter's big gift knocked out of the way tonight. I had already decided to get her a Kindle Fire. I had $48 in unused gift cards from Swagbucks so I knew I didn't have to shell out the entire $199. Then, I found out about the promo good today only for $10 off any $100 electronics or toys purchase if you use Mastercard. To get the discount, use the code ZKGYLEBT at checkout. For more details, check out Moms Need to Know.

I got my son's big gift yesterday. He had been asking for a 3DS and I was so hesitant. Until I remembered a $40 gift card from Best Buy that's been sitting here since last year's Christmas shopping.

Hopefully, the spending will slow down now. Even though I have the money saved for Christmas, it always makes me a nervous wreck when I start spending so much in such a short amount of time.

Still Alive

2011-11-30T08:20:00.002-06:00

I do my best to keep up with your blogs....but can't seem to find time to update my own!

Maybe soon......

Looking for some higher interest income?

2011-10-23T09:12:00.002-05:00

I just added another $100 to my U.S. Savings Bond holdings. I set up an account with Treasury Direct a couple of years ago. Not sure why I hadn't even checked the current rates (they've only been out for almost six months!). But shoot....if I can earn 4.6% for the next six months, then 3.06% for the following six months...that's better than I could dream to earn anywhere else!

See here for a much better explanation than I could ever give.

And safety? Well...it's debatable whether the U.S. Treasury is really a good investment. Although I am of the belief that if they default, all our investments will be screwed. :-/

Final 2 Year Updates

2011-10-09T09:46:00.006-05:00

I'm combining these last three into one post ....because life is crazy busy and while I have a minute to type this out I might as well do 'em all!

BANK VISA

This one is probably on schedule to be paid off first. It has a 6.15% interest rate and the starting balance was $3,575.78. Two years later, it has dropped to $2,060.51!

CHASE CARD #1

Definitely my highest credit card balance. It has a 6.99% which is fixed since I opted out of a change in terms. This one started at $6,698.00. Two years later, it's down to $4,300.80!

Money Market Loan

This is a crazy loan. I borrowed from my savings to replace a heat/air unit in our old house. And for a couple of years I never paid myself back ANYTHING! I'm still not paying much, just snowflaking little amounts when I find them. But at least I'm not ignoring it any longer. Two years ago I owed myself $4,711.50. Now that amount has been reduced to $4,534.39. Not significant progress....but I'm just happy I've put it back on the radar screen!

So there you have it! Total progress since the beginning of this blog.....$69,010.56! Now before you get all excited, remember that $45,739.46 was because of the inheritance my husband received from his mom. It still bothers me that we owe so much money, but it's wonderful to see that the numbers are moving the right way!

A break in the updates to ask for your help!

2011-10-04T20:00:00.005-05:00

I have a dilemma....

I sent an email to my favorite mortgage broker a couple of weeks ago. Ended up being able to lock in a 3.875% fixed rate (30 years) for a refi of the primary mortgage. Based on the assumption that I'd refi $246,000, it would drop the payment $140/month. Less cash each month, less interest the bank earns in the long run (even with the extra payments since I'm already 30 payments into this current mortgage). The closing costs are approximately $1,200 so it would take less than one year to re-coup my costs.

Bad news....we got a really crappy appraisal. He pulled 3 comps from a street I would never consider living on since it backs up to the interstate. We actually looked at houses on that street a few years ago, but the constant drone of the tractor trailers would have seriously put me over the edge. The appraiser won't reconsider.

So now...if I want to proceed, I'll have to bring about $9,500 to the closing table. I could pull it from the HELOC --- at a 2.75% variable rate. To refresh your memory, the HELOC is secured by the rental property. I could try to work out some kind of plan that would not only pay off this extra $9,500 but also increase my monthly cash flow. The new reduced loan amount would drop my current payment by $187 instead of $140.

What to do? What to do? Any opinions?

Capital One - 2 Years Later

2011-09-30T19:31:00.003-05:00

Progress is at a snail's pace on the Capital One card. Fortunately, I opted out of a change in terms a few years ago when they tried to increase my rate. So this one is a fixed 4.99%. The good thing about opting out of those changes in terms is that you can't add any more debt on it. So the only place it can go is down, no matter how slow the progress seems.

Two years ago, the balance was $1,129.26. Today it stands at $828.17.

Kroger Credit Card - 2 years later

2011-09-29T10:54:00.002-05:00

This is the last priority on my list right now. Two years ago, this balance started at $958.23. The card has a high interest rate, but I love the rewards it offers and didn't want to quit using it. I earn $30-$40 of free groceries each quarter, plus I get discounts for gas purchases. I was able to pay the balance down below $700. Then each month I charge all groceries and gas and pay those purchases off before the due date. So I'm not really paying the old balance, I'm just paying for groceries and gas out of this month's budget. But since those are always more than my balance, I'm effectively getting an interest free loan on that money. Plus, I still get the rewards!!!

Right now, the balance on the "old debt" owed to this card is $622.93.

Primary Mortgage - 2 years Later

2011-09-21T05:57:00.000-05:00

Nothing other than the normal monthly payments on our largest debt. It's still numbing to realize you owe almost a quarter of million and watch the principal balance drop ever so slowly.

The interest rate is 4.5% fixed, and as of the last statement, there are 27 years and 8 months remaining.

This one started at $254,984.88. Today it's down to $246,067.12.

Rental Mortgage - GONE!

2011-09-20T00:34:00.000-05:00

Two years ago this balance was $27,723.90. This was the mortgage on our old condo (now the rental property).

We were able to pay this one off in 2009 with some of the money my husband inherited after his mother's death. Being free of this payment has put this in property in a position where, even with the amortized loan through the HELOC, it has positive cash flow. Well...it won't this year with that huge assessment from the HOA, but in a normal year it would. This is a good thing!

So far I have had (can you hear my knuckles rapping on the desk) good luck with tenants. We still love our old condo. I get really nostalgic when I'm over there for one reason or another. I guess that is normal since I lived there for over 17 years. Moved in there when I was single, added a husband, then two kids. Don't get me wrong. We love living where we are. Our house now has lots of room, lots of storage and a huge yard. No one gets displaced when we have overnight guests, and we're never fighting for a bathroom. But the time, money, and energy it takes to clean and maintain might not be worth it as we get older. We plan to keep this rental for a long time....maybe even long enough to move back there once the rugrats get out of high school. LOL

It's Hard to Read the News

2011-09-19T10:43:00.002-05:00

without thinking

"there, but for the Grace of God."

Behind the Poverty Numbers

It could happen to anyone.....even us.

HELOC - 2 years later

2011-09-19T06:46:00.002-05:00

I would love to be debt free, but when I start ranking loans this is one that hasn't hurt too badly over the past couple of years.

This is a home equity loan on our old home....a condo that is now a rental property. On a chance visit to the bank back in January of 2008, somehow they sold me on increasing a $25K line of credit to $100K. Back then, I had no debt other than the small mortgage on the condo. We tapped into the $25K for my husband's business off and on, but we were nowhere near maxing it out.

Four months later, hindsight showed that was the only way we ever would have gotten the house we now live in. I still don't think I've ever told you the whole story about how we found ourselves buying a foreclosure house that had the floor plan of our dreams in one of the top school districts in the nation (and absolutely the best schools in our state). Not to mention it is in a subdivision where my favorite cousin and her family live. It was one of those things where every star had to line up in the sky, one of those things I prayed and prayed and prayed about. But I had to tap the entire $100K for it to happen. Did you know that in Tennessee you have to bring CASH (i.e. Cashier's Checks) to the courthouse steps even before you know what your final bid is going to be??? Let me tell you....for everything to come together like it did....it was one of those things you just had to stand back and know that HE definitely had His hand in this one.

In August, 2009 the balance was $92,711.42. In 2009 my husband received some money from his mother's estate, and we were able to put down about $20,000 on this loan during the year.

This loan has an enviable rate (prime minus a half percent so currently 2.75%). At the time I was very nervous about the variable rate on this loan. Everyone kept talking about coming inflation and rising interest rates. Turns out so far that hasn't happened, but I was nervous enough to take an offer to convert a portion ($73,000) of the balance to a 15 year fixed rate of 4.99%. So yeah, I'm paying more in interest than I could have been, but honestly knowing it is a fixed rate does let me sleep better every night. You must not forget.....I AM old enough to remember double digit interest rates in the early 80's. And the thought of paying 15% on this much of a balance was very nerve-wracking.

Once I finish borrowing out the amount of the assessments over the next couple of months, I'll probably be right back up there near the $72K mark. But for today, the balance is $68,689.11. And the balance on that fixed portion is down to $67,314.11. The other $1,375.00 is at the 2.75% variable rate.

Chase Card #2 - Two Years Later

2011-09-18T05:22:00.002-05:00

First one up to bat....Chase Card #2.

Which started out back in August 2009 at $3,620.62. This was my highest rate card, so it was at the top of the radar. I ended up transferring the balance to the HELOC, but I continued to keep up with the amounts separately. Then I had to borrow another $2,000 in 2010 to pay for some LARGE expenses that summer.

Finally just last month, I took money out of a savings account and paid this balance off! Don't get too excited though. I had the money saved for an upcoming expense on the rental property (big assessment from the homeowners' association). So I just used the savings, paid off this balance, and I'm re-borrowing on the HELOC as the payments for assessment are due. It will come close to being a complete wash. It just simplifies my life and my thinking to knock this one out.

So here's the pretty ticker!

OOPS!

2011-09-17T16:44:00.001-05:00

Remember the switch to the Health Savings Account?

I emailed the partner in charge of payroll and told him I wanted to contribute $512.50 per month including the firm's $87 portion. Well, he must have read my email too quickly (or maybe he just wanted to make me sweat). Because out of my semi-monthly paycheck they took $512.50! That's $300 more out of my check than I was expecting!!

But after sleeping on it, I've decided I'm going to try and leave it like it is. I'll end up putting in $4,100 before the end of the year. And the firm will contribute an additional $348. That goes a long way towards the $5,000 deductible we now have. And if we go four months without approaching that deductible, this might be my "forced savings" way for the upcoming orthodontist expenses.

I didn't have any real plans to SPEND that money. It would have gone into a holding pattern to hopefully put into my Roth. But braces are in the 9 yr. old's future.....I might as well face it. We have our initial consultation with the orthodontist next month....I'll know more then what I'm up against. At least it won't be such a sticker shock knowing that gobs and gobs of money are being set aside right now for it!!!

Celebrating 2 Years!

2011-09-17T01:06:00.000-05:00

Yep! Two years since I started this blog to document my journey out of the mounds of debt I found myself in back in 2009.

There are STILL mounds of debt, but it's fun and motivating to look back and see the progress that has been made! And on those days it feels like one step forward, two steps back.... I need to look back to re-assure myself that things are better than they were.

Over the next few days, I'll be doing a detail review of the debt that was approaching $400,000 when I made the first blog post.

Here's where it stood:

Primary Mortgage - $254,984.88

Rental Mortgage - 27,723.90

HELOC - 92,711.42

Chase Card #1 - 6,698.00

Money Market Loan - 4,711.50

Chase Card #2 - 3,620.62

Bank VISA - 3,575.78

Capital One - 1,129.26

Kroger credit card - 958.23

TOTAL $396,113.59

UGLY! And let's face it, it's still not pretty. The living expenses that come with raising two kids on our income just don't allow for gazelle intensity. But the situation has improved. And I thank each and every one of you for stopping by and offering encouragement and advice. It's going to be a long haul, and I am grateful to all of you for sticking with me and helping me wade through until we can all declare debt freedom!!!

Another $5 for the Christmas Budget

2011-09-16T10:47:00.002-05:00

Yep! Just cashed in more Swagbucks for another $5 Amazon.com gift card. This brings my total for the year to $45. I had set a goal of $60, but realistically I'll probably end up with $55. Still nothing I'm going to sneeze at.

And Friday is always Mega Swagbucks Day, so what are you waiting for???

Is Couponing Worth My Time?

2011-09-06T01:06:00.002-05:00

I've mentioned before that I have several very convenient stores nearby to make stops at multiple stores during the week. Some weeks are better than others depending on how busy work is, how crazy the kids' schedules are, and what the sales are like. Usually I spread my stops over the course of the week to pick up the sale items especially if I have good coupons to match.

Today was an exception. I put off the grocery shopping all weekend. Finally mid-afternoon, I sat down at the computer. I have several blogs in my Google Reader that match up deals and coupons at the grocery/drug stores. I use posts from those blogs to make shopping lists for each store and note the coupons that need to be clipped (or found if I've already printed them). I spent two hours making lists for six stores, coming up with a potential meal plan for the week, and finding the coupons. Leaving my husband to feed dinner and get baths done, I went out in the steady rain. Within a 2 mile radius I can be at Target, CVS, Walgreens, Harris Teeter, Publix and Kroger. I was able to hit all of those except Target in the next 2 hours.

Not including sales tax, I spent a total of $90.09. My savings including coupons were $94.40. Not too shabby considering I got enough food to last at least a week including a really pretty roast and a couple of packages of ground chuck. Since we pack lunches, this is food for all 3 meals for 4 people. We also needed a couple of other "bigger ticket" items like a 12-pack of toilet paper and coffee. Have you priced coffee lately??? OMG! This is where my addiction shows, because I refuse to cut back.

Anyway....a total of 4 hours. If I hadn't been couponing, I would have spent an hour going to Kroger to do the weekly shopping anyway. So I spent an extra 3 hours of my day to save $94.40. Working out to an hourly rate of $31.46, it's definitely worth my time! Not to mention there's no way we could fit other things in our budget without doing this...

Health Insurance Switch

2011-09-03T12:45:00.003-05:00

I swear 444, I know how you feel. My response on Beks post was so long, I thought it deserved it's own post.

I work for a small company. I think we have 33 people covered under our health insurance plans. And our plans always renew on September 1, so I happen to have the numbers in front of me. We have a choice of the traditional PPO with a $1000 indiv/$2500 family deductible or a High Deductible ($5,000 family) Plan with a Health Savings Account.

Every September we get hit with an increase. This year was 16%. Which I had heard the average right now is about 19% so I guess that's in line.For the traditional plan, my portion of family coverage would have been $754.38 per month. My employer pays for single coverage which would have been the other $371. Yes…..that is $1,125 per month total for family coverage. Each individual has a $1,000 deductible maxing out at $2,500 for the family. We had $25 co-pays for office visits and prescriptions were either $10, 20 or $50.

I decided to switched on September 1 to the High Deductible Plan. All office visits and all prescriptions go towards the $5,000 deductible. My portion for insurance is $518.24 per month. And I’m contributing an additional $512 per month (employer pays $87 of this since they only have to pay $284 for what single coverage would be) into a Health Savings account which I can reimburse myself for ANY and ALL medical/dental expenses. I can contribute $6,150 annually to the Health Savings Account which exceeds the $5,000 I might have to pay out-of-pocket for everything else.

I ran the numbers like a million times. But I was able to remove the medical line in my monthly budget since I’ll be able to reimburse myself for all the expenses. Because of that and the taxes savings, I’m only going to bring home about $40 less per month than I would with the traditional plan. But I have the “chance” (depending on how healthy everyone is) to let that HSA account build up and be able to reimburse myself for outrageous orthodontist bills in my near future. I have a 9yr old who is going to need braces in the next year or so.

I hate it, but it is what it is.

Scary

2011-08-26T09:43:00.003-05:00

The credit cards bills (on the credit cards that I pay off each month) are all here now. These are the ones that include our trip to Myrtle Beach for dd9's dance Nationals and most of the major back-to-school expenses. It is scary. Not sure I'll be able to SQUEEEZE enough out of cash flow to pay them in full.

I'm really hoping to have enough time to sit down and figure it all out this weekend. Not sure that is going to happen, but I can hope. I know I'll feel better just to know one way or another.

Oh....I haven't even told you about the transmission that's being rebuilt in my 9 yr. old Jeep at this very moment. *SIGH* At least I have a "car fund" savings that will cover that, but how I hate spending $2K plus a rental car.

So, financially, things are not great at the moment. But we're healthy, the kids are loving school, and I just know we're due to catch a break soon. Hope all readers on the East Coast stay safe this weekend!! It's still too hot for my liking, so I'm resolved to spend any extra time this weekend at my desk --- either on work for pay or figuring out the budget mess.

Are you on the edge of your seat?

2011-07-29T11:43:00.002-05:00

Wondering whether Congress will reach a compromise on this debt ceiling debacle? I've been following some tweets on Twitter....and what a divided nation we are! When you have two sides so completely entrenched in their beliefs and values, and neither side has full control of the legislative process....there has to be compromise. I do wish it included spending cuts and a balanced budget amendment, but I guess we'll have to take what we can get.

No major news on my home front. I am stressed to the max for some reason today. Lots of work deadlines approaching. My daughter has her team tryouts tomorrow, and that seems to be more stressful for the moms than it is for the girls. Have any of you watched Dance Moms? I will say I am hooked on that show....probably because it makes me and my circle of Dance Moms seem so normal and down-to-earth. Kind of like watching Hoarders? Then you can look away from the messes since your own house is a thousand times better than the ones on that show! LOL

OK....lots to do. Better get to it. I've even got my fingers crossed for some overtime the next couple of weeks. That would certainly help the August budget! Send good thoughts for lots of energy and no child care issues....Momma needs to work!

Savings Accounts for Kids

2011-07-23T13:19:00.002-05:00

I'm still keeping my eye on ING, but I was excited to find out this week they have kid-friendly savings accounts.

no minimums
no fees
the same 1% annual yield my other accounts get

Check it out here.

My 9 yr. old has been wanting an "account." I'm so happy to find a fee-friendly option for her. I remember my mom taking me to the bank --- probably younger than 9 --- to open my own passbook savings. Does anyone else remember those little ledgers in a folder that looked like a passport??? Gosh, I'm old.

The Great Recovery

2011-07-21T09:33:00.003-05:00

TheGreatRecovery.com

Will you be watching tonight? I am going to try. That's a bad hour in our house for focused viewing, but I really could use some hope about where our country is headed.

Frugal Birthday Cards

2011-07-21T00:22:00.002-05:00

I just ordered 20 photo cards (using a picture of my kids and adding some text with birthday wishes) for $1.49. That's less than 8¢ per card!!! I can't even make them with my scrapbook stash that cheaply! And my family will love them...

Here's a link so you can order your own!

Did you read your letter from ING Direct?

2011-07-09T04:47:00.003-05:00

I heard the news last month about the agreement reached between Capital One and ING Direct. Here's the letter that was in my inbox this morning:

I have loved my ING Direct savings accounts for seven years! I opened two Sharebuilder accounts (one Regular, one Roth) earlier this year, and the customer service has been amazing!

I feel very leary about wolves coming in with my sheep. So I'll be keeping my eyes open for other options and watching like a hawk for changes in corporate policy.

Thinking Out Loud

2011-07-07T09:51:00.003-05:00

Please feel free to skim right over this if it gets too hairy for ya. It's kinda confusing in my mind so I'm posting here to help me think through a potential transaction spurred on by Mortgaged Life and her use of equity lines vs. savings. Of course, if you want to offer your opinion I'll gladly listen.

Background:

HELOC - secured by our rental property (the old home). Total line of credit is $100,000. Current balance is $68,229 which was amortized on a 15-year 4.99% loan back in November, 2009...so roughly 160 pmts. remaining.

Chase Card #2 - was a credit card that Chase refused to lower my 11 or 12% interest rate. So I paid it off by drawing on the line of credit. This part of the line was not amortized on the 15-year loan (above), and is a variable rate of prime minus 0.5% (currently 2.75%). Current balance on this portion is $4,327.

Love that I'm paying 2.75% instead of 12%. But because of my "bucket" mentality, it bugs me that I've mixed the rental loan with the credit card loan. Kinda like my kids hate for their foods to touch each other on the dinner plate I guess.

Word has it (and a homeowners' meeting confirmed) that we will be handed a rather hefty assessment for the rental property (condo) for a MAJOR retaining wall, underpining project. Basically one row of homes was practically sliding off the hill. And yes, when you own a condo you are responsible for everyone's property not just your own. It was really no big surprise....or at least I'm over the shock and prepared to write a check for $4-5K.

I actually have enough in the Rental Emergency Fund to cover that and still have 3 months of expenses (payment, taxes, HOA fees) left over.

So now I'm thinking I drain the Rental E-Fund ---- after all it is my money ---- and pay enough down on the line of credit to obliterate Chase Card #2.

Then when the bill comes in for the assessment, I draw on the line to pay the assessment.

Yes I know....I'll end up with basically the same amount of debt. But in my mind, then every dollar on that line of credit will really be related to the rental property. My bucket mentality sometimes makes my life alot more complicated than it has to be.....

And now that I've typed this out, I've realized I better wait and make sure I don't need to draw any more money on the line to pay for our dance team trip!!!

Net Worth Funded - 2Q 2011

2011-07-06T12:21:00.002-05:00

At least I have the spreadsheet to make me feel a little better. It's nice to see that although it feels like treading water, slow progress is being made. I think my goal to pay down $10K of debt this year is definitely obtainable. Not exactly gazelle intense, but more like the persistant tortoise.

The next two months might be the killer. Our annual trip (600 miles away this year!) for dd9's dance competition and back to school expenses might just do me in. Let's hope I've socked enough away --or at least can juggle the budget-- to cover it all. I have my fingers crossed, but I'm leary.

I forgot to update you on more Good News!

2011-07-03T10:46:00.002-05:00

Due to a change in their living situation, I agreed to let my old tenants out of their lease six months early. Two sisters....one gets married...other one moves out....condo is much bigger and more expensive than a pair of newlyweds needs. They wanted to move to smaller and cheaper housing and who am I to stand in the way of anyone trying to better their financial situation.

The awesome thing was that ONE ad on Craigslist yielded 3 showings and 1 approved application. I did the exit walk-through and got the keys from the old tenant on a Monday evening. We had carpet cleaners there on Tuesday morning. My husband detail cleaned the kitchen, bathrooms, baseboards while the carpet cleaners were there. And Tuesday evening I met the new tenant and handed her the keys! Not even 24 hours vacant....I didn't have to take over any utilities....and I didn't miss a single day of rent income!

That's pretty awesome considering it took us forever to find our first tenants back in 2009....

Life is a mix of Bad and Good

2011-07-03T10:33:00.002-05:00

We're just keeping on keeping on....crossing our fingers the summer expenses aren't going to kill us again this year. I've been scared to update the reports, the budget, the checkbook.

Bad news: No raises this year. UGH! Even a 1-2% raise helps keep up with the rising cost of gas, groceries, and health insurance.... Now I know how the Social Security recipients have been feeling the past couple of years.

More Bad news: DH is not working right now. We both agreed it was not a long-term situation....I try to mind my own business though on his timing of making his exit.

Good news: The little one starts kindergarten in just 7 weeks! Although I'll still be paying for after-school care for him, it will be ALOT less than the monthly check to preschool I've been writing for what seems like forever!! PLEASE PLEASE let that stretch further than just the cost-of-living increases!

More good news: I cashed out more Swagbucks this morning for a $5 Amazon gift card. And I'll probably be cashing out $10 or so from M-Turk in the next few days. Good thing the little things keep me happy.

Hope you all have a safe and Happy Fourth!!!!!

Crossing the line

2011-04-23T09:33:00.002-05:00

Refinancing the HELOC to an amortized 15-year loan took alot of stress out of my life by fixing the interest rate (albeit higher). This month, this loan reached that magical point where the principal portion of the payment is more than the interest portion. Something about crossing that line just makes me so much happier!!

This month statements shows: $289.56 principal and $287.34 interest.

Clarity on the Annual Financial Goals

2011-04-22T11:14:00.003-05:00

When I wrote this post, I was a little vague about my financial goals for the year. Nothing like going through another tax season, where numbers are on the brain 24/7. Looking at hundreds of other tax returns always helps me clarify my own finances, and the progress I'd like to make.

So yes...even though I still want to fund the Net Worth by $15,000, here are the specific goals in order of priority:

Pay for current expenses without borrowing any more money during 2011.
Reduce total debt by $10,000. The balance on 1/1/11 was $337,452.59.
Fully fund $5,000 into my Roth IRA before 4/15/12.
Save as much as possible for anticipated orthodontist expenses in 2012. DD turns 10 next January, which is when our family dentist will be sending her for braces. Unfortunately, I had two thumbsuckers, so braces are definitely in the future for both kids.

SQUEEEEEEZE!!!!

2011-04-10T09:57:00.003-05:00

I'm squeezing out another $150 to send to the Roth IRA before the deadline. That will up my total contribution for 2010 to $1,675. Let's hope I don't regret this when time comes to pay for our summer trip to dd's dance team Nationals.....

I just crossed the $10 mark with MTurk earnings

2011-04-06T22:54:00.004-05:00

I decided to let them verify my checking account the old-fashioned way (by making two miniscule deposits into my account), so it will be a few days before I transfer the money. But I'll have a few more cents too! This has left me wondering....

Do you report Survey Income or Swagbucks earned on your tax return?

We're all anonymous here, and I don't think the IRS will be monitoring this blog to look for tax evaders.....so tell me the truth. I'm extremely curious.

I do report everything that is deposited into my bank account. I probably missed some Swagbucks, since I usually just post in my money software the amount I've paid for an item. But I think technically I should claim the value of the Amazon gift cards as income. They're not "discounts", they're just alternate methods of payment. I need to remember to keep up with it better in 2011.

Speaking of which, I have enough Swagbucks to get four $5 gift cards, so I think I'm on track to meet the $60 goal I want to have for Christmas shopping!

Feeling a little abnormal

2011-04-06T07:52:00.002-05:00

Our lunchroom discussion yesterday turned to frugality, tightwads, being cheap, whatever you want to call it. Remember I work in an accounting firm, so most of my co-workers are fiscally conservative by nature anyway. Of the eight people in the room (I've worked with all of them more than 10 years...some of them 24 years), they voted me hands down as the "tightest" with my wallet. The old motto was always "In Debt NEVER pays retail." What they don't understand is that I could never support our standard of living (housing, kid activities, etc) if I wasn't as tight as a tick. I think they would also be shocked to know the level of credit card debt I allowed to accumulate in 2008 and 2009. Even so....I walked back to the office wondering just how weird I really am. Then I glanced over a few of the PF blogs in my Google Reader, and felt back among friends.

First Quarter, 2011 Net Worth Funding

2011-04-01T20:22:00.004-05:00

I should be working, but I'm procrastinating....

Remember this blast from the past? It's been months since I posted my progress. I figured out the final number I'm willing to pull from checking for the Roth. Combined with a little bit of stock I sold back at the end of 2010, I'll be funding a total of $1,525 into the Roth for 2010. A far cry from the $5,000 allowed contribution, but better than nothing I suppose.

This is a boring spreadsheet, but it helps keep me on track. The big withdrawal from the Rental E-fund in February was to pay the annual property taxes. I'm finally happy with the balance in this E-fund for the rental since it has a full 6 months of expenses. Good thing, since I'll be looking for new tenants as of the first of July.

The other numbers that make me smile are the stock dividends. Many of the quality dividend-paying stocks increase the dividends in the first quarter of the year. I'm reinvesting all these in additional shares, so the dividends keep going up little by little. Dividends for the 1st quarter, 2010 were $201.12 compared to $221.21 so far this year. I'm glad I have the dividends for an inflation hedge since the interest income just keeps getting punier and punier!

Yay me!

2011-03-31T00:05:00.004-05:00

I've updated all the tickers at the bottom for the month of March. I find myself thinking about this debt CONSTANTLY! When I had to draw on the line of credit last fall, it really knocked the wind out of my sails. I kinda fell off the blogging wagon and quit updating. Right now I'm trying to balance all my goals of wanting to pay extra towards the debt, wanting to put as much as I can in the Roth, and saving some money back to pay cash for some upcoming expenses.

I think I've finally (at least for today) resolved to be happy if I can pay a total of $10,000 towards the debt balances this year. For the first 3 months, the debt has decreased $2,407.35 so I'm not too far off track to meet that goal. It's not exactly gazelle-intense, but I'm really hoping to get through the summer without borrowing any more money!

As soon as ING credits my accounts tomorrow night for the March interest, I'll be able to finish my spreadsheet for how much the net worth has been funded this year. Maybe I'll also decide how much I can "afford" to part with to send to the Roth IRA. Or maybe not....since Uncle Sam is giving me until April 15 to figure that one out!

Not much to say

2011-03-11T05:22:00.003-06:00

Well, I probably have alot to say...I just have trouble finding time to put my thoughts into the written word. We are hanging on right now. My husband is living at a sober house, going to lots of AA meetings and spending lots of time helping his very sick brother. He visits me and the kids, but isn't staying here. I am proud of his progress, but there are still many issues to be resolved.

Life is crazy. Tax season is in full swing, dance competition season has started for my daughter, and my 5 yr. old has his first spring soccer game tomorrow!

I did open a new Roth IRA account at Sharebuilder! I've only transferred $400 to it so far, but I'm very excited about opening this account. Mutual funds are okay, but I'm excited about having part of my Roth in individual dividend-paying stocks and not worrying about what cut the mutual fund managers are taking out of my returns. Sharebuilder also reinvests all your dividends, and there are no fees for IRA's!

I also updated ALL the tickers at the bottom of this blog. Hopefully, I can keep them updated even if I don't have time to write a blogpost.

Being a single mom

2011-02-20T13:54:00.004-06:00

My husband had another terribly bad drinking binge. As advanced as his alcoholism is, these binges are terribly dangerous for his physical health. After 10 days in the hospital getting over the DT's, the hallucinations, he is once again admitting his powerlessness. He is not living at home. I can't keep putting our kids through the chaos. I've had to make lots of schedule changes and arrange additional child care. But we're getting by one day at a time.

DEAL for TODAY ONLY! My Headstart on Christmas shopping

2011-01-19T15:46:00.004-06:00

Well, not really the shopping part...but getting my Amazon.com gift cards lined up and ready to use when I do start. I already have $5 from cashing in Swagbucks so far, but today's deal at LivingSocial is a $20 gift card for only $10.

I probably did 90% of my shopping for the kids at Amazon. You can catch some awesome deals, their service is top notch, and I don't have to fight the crowds. I even caught a great deal on a Wii game last December while I was browsing emails during a continuing education class....and was able to order from my phone and get those coveted hours to keep my license at the same time!

2010 Ending Balance - Chase Card #1

2011-01-17T14:09:00.002-06:00

HUGE SIGH! If my readers have all forgotten me, I wouldn't blame them. I am really trying to stay focused on my goals, and spare time is just non-existant!

But I'm home today since schools are closed, and I found a minute to update this balance.

In August, 2009 the balance on this card was $6,698.00

Total paid through December 2010: $1,724.91

Ending balance = $4,973.09

2010 Ending Balance - Primary Mortgage

2011-01-08T12:11:00.003-06:00

So I guess I should get back to getting the loans updated! WOW! I have been so busy, but other than a sick boy it's all good. I've made great progress on getting the office part of my dungeon deep cleaned and decluttered. Still have a long way to go to get the scrapbook/crafting side organized, but I'm loving the progress so far!

This is the mortage on our residence. This loan was refinanced in 2008 with a 4.5% fixed rate, but there are 28 years, 5 months remaining.

In August, 2009 when I started tracking the pile of bills, the balance on this baby was $254,984.88.

Total paid = $ 5,610.84

Balance today = $249,374.04

So glad we've crossed below the 250K threshold, but it still feels strange to know you owe a quarter of a million on your house!!!

The 2011 Bucket List

2011-01-02T06:40:00.000-06:00

I'm listing ALOT here....most of which is not finance related, but life isn't all about finance. And I could have unlimited wealth and still not be satisfied. At least that's what I've been told. LOL

Personal Goals:

Health - Exercise 3 times a week whether it's walking the neighborhood, riding bikes with the kids, or playing Just Dance on the Wii. Make appointments for overdue health exams. Be conscious of finding healthy alternatives when I'm looking for something to stuff in my body.

Time Management - The most recent time-sucker has been playing games on Facebook, so as of yesterday I am only allowing myself online gaming time between 11PM and 6:30AM. If I happen to sleep through the entire time slot, so be it. More likely, I'll be up at 5:30AM like I was today. I just need to know when to make myself stop!!

Family Goals:

Marriage - Continue to work on rebuilding our marriage. We had a pretty rough 2010 (and 2009 for that matter). My husband is working his program one day at a time. I just need to keep working on letting go of resentments and fears.

Children - Be intentional with spending time together. Savor these last few months with my preschooler. He'll be starting kindergarten in just a few short months, and this is precious time never to be regained. My daughter will be turning 9 in just a few days, and it's hard to believe that her time at home before college is almost HALFWAY GONE!!! Make sure I say "yes" more than "no" to building Legos and baking cookies and the endless list of requests.

Professional Goals:

Use our current office remodeling project as incentive to declutter and organize my workspace better. Approach our shift to a paperless environment with a positive attitude instead of the fear that grips my chest. Become more of an expert in IRAs. I'm kind of the go-to gal for pension and IRA questions in our firm, but there is so much more I could learn instead of just knowing where to look it up.

Spiritual Goals:

Continue my journey in Al-Anon. Continue building relationships with others who attend our place of worship. Bite the bullet and take my kids to church even when I'm too worn out, 'cause I always get something out of it. Pray more often.

Home:

Over the course of the year, go through every nook and cranny of this entire house including all three attic areas decluttering, deep cleaning and re-organizing. I've already mapped out a schedule and January is the month to tackle the office/craft room which could also be called the dungeon! Work on organizing photos and scrapbook at least 25 pages during the year.

Financial:

Start over with my goal to fund the Net Worth by $15,000 during the year.

A longtime friend shared this verse on Facebook yesterday. So fitting for the New Year!

Thus says the Lord...."Do not remember the former things, nor consider the things of old. Behold, I will do a new thing, now it shall spring forth." Isaiah 43: 16, 18-19

2010 Ending Balance - Money Market Loan

2011-01-01T12:23:00.002-06:00

Remember this one? It was the one I almost forgot about because it was owed to none other than my Money Market account. I let this one slide for almost 3 years before I started paying myself back....mostly with snowflakes from survey income.

At the start of this blog, the balance was $4,711.50

Total Paid: $ 135.13

Balance today: $4,576.37

That's $135.13 more in my EF than I had before I intentionally started sending those small payments to MY account!

Hey Twenty Eleven! Bring it on!

2011-01-01T10:04:00.002-06:00

Happy New Year bloggy friends! I've always loved the change of the calendar...whether it's the beginning of a new week, a new month or especially a new year. Hope rings eternal that things can be better even when they're not so bad as they are. I don't think there's anything wrong with striving to excel, goals to be more than you are today. If you've already reached perfection (which we know is impossible), then your name must be Lord. But I think He wants us to use our talents and our gifts to continually improve our lives and the lives of those around us!

I still haven't written down my 2011 Goals. I'm hoping to find some quiet time today to sit down with this article and put my goals in writing.

I did however check on some accounts this morning and was surprised to find that my 401K has reached pre-market meltdown (in late 2008) levels! I'm still nervous about the market. I think there are still too many time bombs waiting on the horizon, but I don't think pulling out and sitting on the sidelines is the answer either. We just have to ride the storms...and hope the country gets back on a better track of creating jobs and reducing the debt. I'm happy that my 401K and IRAs have crossed the $200K mark ($210,000 actually), but I also know that is not nearly enough for a 48 year old with the debt load I'm carrying.

I hope you're feeling as optimistic about the New Year as I am today! 2010 brought many challenges. I'm hoping that I learned alot and gained some wisdom so that I can more effectively deal with whatever 2011 throws my way! I wish all of you good health and peace in the New Year!

Time to close the books on 2010

2010-12-31T07:52:00.003-06:00

Although it will probably be a while before I get a true picture of where everything is. I've fallen behind in dealing with all the mounting papers around here and inputting all the bank transactions into my money software.

My gut feeling is that progress was made, but not nearly the progress I was hoping for.

I'm just ready to get on with it. View tomorrow as another fresh start. And keep on keeping on!

I have so many plans rolling around in my head for 2011 -- some financial, many more are "quality of life" goals. I know the experts say that goals should be written, so maybe I need to get them out of my head and type them out. But right now...I gotta get moving. It's a work day for me!

2010 Ending Balance - Bank Visa

2010-12-29T19:42:00.002-06:00

In August, 2009 when I started tracking this fiasco, the balance on this card was $3,575.78.

The bill that arrived today shows a balance of $2,513.02.

WooHoo! Over $1k paid off on this one!!!

we haven't even gotten the gifts put up yet

2010-12-27T15:24:00.003-06:00

but I'm already thinking about next Christmas. I did well over half of my shopping this year at Amazon, and was happy to have $35 in Amazon gift cards to use. But I'm bound and determined to end up with more Amazon gift cards for next year.

How? By trying to remember to keep Swagbucks search engine open on my computer and using it every time I need to search for something. I also need to remember to fill out the daily poll every day. That's worth 365 points over the course of a year. It takes 450 points to cash in for a $5 Amazon gift card.

Goal for Christmas 2011: $60 in Amazon gift cards from Swagging.

If you've never tried Swagbucks, click on the picture below. And I might get a few extra points if you start Swagging too!

Confession - Chase Card #2

2010-12-22T12:54:00.002-06:00

If you remember, the balance on this card was transferred to the variable rate portion of the HELOC months ago. I ended up taking a $2,000 draw from this account in the fall to offset some unexpected costs due to the flood damage, our family vacation, and installing an electric fence for our puppy. UGH! I hate backward progress. The one bright spot about this balance is that interest is only 2.75%....an amazing rate as long as prime stays where it is.

Started at: $ 3,620.62

Balance today: $4,485.81

The ticker obviously cannot handle the negative progress. Oh well, hopefully it will catch up and look better SOON!!!!

In case you missed me

2010-12-22T08:58:00.003-06:00

I'm still alive. Surviving. Making SLOW SLOW SNAIL-LIKE progress. But telling myself I'll be a better blogger in 2011.

If you neglect the tickers too long, they disappear. So I'll try to get them updated over the next couple of weeks.

only update for today...is the Capital One balance.

Started at: $1,129.26

Total paid: 186.21

Remaining balance : $ 943.05

Where did the weekend go?

2010-10-17T23:33:00.005-05:00

Less than 30 minutes and the weekend is officially over. I have the Sunday night blues which happens pretty frequently. And it's not really that I dread Mondays. I just get SO frustrated at not being able to accomplish everything I want to mark off my list on the weekends. Oh well...I'm taking half a day off tomorrow. The 3rd grader is on fall break, so we're going to a pumpkin farm tomorrow afternoon while the weather is absolutely gorgeous.

Which means I really ought to drag out and spend at least an hour with some of that work I brought home Friday afternoon. I knew if I told you that, I'd do it as soon as I hit the Publish Post button. 'Cause I couldn't dare take it if I had to admit to you that I already backed out on my year of Work More Earn More.

And in case you're wondering, the first part of October was really a great jump start to this new goal. 11 business days and 107.5 hours. (I was working on some of the non-business days too.) So the next paycheck should be pretty sweet, even though I'm realistic to know that it won't stretch as far as I'd like it to.

Okay....I'm getting off blogger and moving on to the stuff I can get paid for. Hope everyone has a productive, prosperous, and low-expense week!

The Year of Work More, Earn More

2010-10-12T00:04:00.006-05:00

(not me)

Several bloggers I follow have started a Spend-Less Year this month. Maybe Sharon started it? I’ve been so scattered, I really can’t remember. But I know Mrs. 444, jpkittie, and Maureen have all joined in. I might even be forgetting someone.

Discretionary spending is really not my issue. Honestly, I hate spending money. Let's face it -- I'm a tightwad! It makes me physically sick when expenses are running abnormally out of control. It’s just that our (mostly) fixed expenses are so high there's no wiggle room to make much headway on long-term goals. I start feeling guilty when I fast-forward 10 months and dream of not making a payment to the preschool every month! And yes….I do feel guilty. My little guy just turned five, and I know that this age is precious. I sincerely would love for him to stay five forever. Let’s just say it'll be easier to wipe away that tear in my eye when he goes off to kindergarten once I remember I don't have to write a $600+ check every month. LOL

In fact, I’ve chosen “life” over “income” more often than not for almost 9 years. When my oldest was born, I switched to a flexible schedule and started being paid my hourly rate instead of straight salary. In my firm, that means I work to get the job done. I do have to work a minimum of 30 hours per week to keep health insurance and other benefits. I also work a handful of 60+ hour weeks a year when the deadlines are closing in. But for the most part I’ve averaged around 34 or 35 hours a week for almost nine years now.

Getting paid for 34 hours when you could get paid for 40 is like voluntarily taking a 15% pay cut. Don’t get me wrong. I don’t regret having those extra hours to spend with my children, attempt to keep things running at home, and as a result keep me a little more sane.

But now that my kids are older and a little more self-sufficient, I’ve decided to step up the pace a bit. And I’m posting it here to keep me accountable. Many of my budget issues would be solved by working those extra six hours each and every week. Of course, it will mean I have to sacrifice somewhere else. For a year, I can limit my Facebook time and give up a few minutes of sleep each night if it brings more peace to our budget.

And if you’re wondering how it’s gone so far? It’s the 11th. We’ve had 7 working days, and I’ve already logged 65 hours. This is a big deadline crunch, so that has helped. I just need to keep the momentum going when things calm down in November and early December. And now that I’ve put it out there, I’m accountable to all of you!

Other goals I have for my Work More, Earn More year are to:

Be more diligent completing online surveys with the companies that I’ve found to pay fairly and promptly.
Use Swagbucks search engine more. So far, I have $30 in gift cards at Amazon to spend toward Christmas, 2010. By this time next year, I’d like to have at least twice that amount saved up for Christmas, 2011.
And lastly, go through my old jewelry and sell the scrap gold. I have no idea what this will bring, but it certainly isn’t doing me any good sitting in a drawer

Panic

2010-09-12T14:52:00.002-05:00

I'm having panic attacks today. Faced with a major deadline at work this week, and I have found NO time yet this weekend to make any progress on it. Too much laundry, ds's soccer, getting the family and the house somewhat ready for the week ahead, and the need for a little down time has filled up my weekend thus far. I'm left with just a few hours left to get some work done, and we have to leave for a potluck dinner in 2 hours.

Guess I don't need to waste any more time blogging. I'd appreciate all the energy vibes you can muster up to send over the broadband! :)

Primary Mortgage - August '10 Update

2010-09-08T10:47:00.004-05:00

Another one that drops consistently, but one that will be around for a long, long time. 28 years and 9 months left on this one.

$355.25 paid. New balance = $250,808.41

Chase Card #1 - August '10 update

2010-09-05T13:05:00.002-05:00

$74.34 paid. New balance = $5,270.92

To give myself some encouragement, I'm looking back at the original post on this balance. $1,400 is not alot to some people, but I'm reminding myself that it IS progress. Also, with this posting the total debt balance has dropped out of the $339K into the $338K range. Each $1K drop is something to cheer in my book!!!

Bank Visa - August '10 Update

2010-09-05T11:23:00.001-05:00

Avoidance is not helping the situation, so here we go.....

$55.95 paid. New balance = $2,728.00

HELOC & Chase Card #2 updates - August 2010

2010-08-21T13:14:00.002-05:00

HELOC -
$280.16 paid. New balance = $71,095.60

Chase Card #2 -
$20.17 paid. New Balance = $2,531.02

Capital One Update - Aug. 2010

2010-08-21T12:27:00.004-05:00

It seems hardly worth posting such tiny progress. But I'm trying to get my focus back. I even listened to the Dave Ramsey radio show yesterday afternoon looking for motivation to keep fighting the fight.

$10.81 paid. New balance = $986.97

Very late with the July Net Worth Funding update

2010-08-15T15:16:00.004-05:00

Maybe it's a good thing this blog is around. Otherwise, I think I could so very easily slip back into total avoidance mode. Out of sight, out of mind is kind of where I'd like my finances to be at the moment. But I know from past experience it just gets worse especially when I'm not paying attention to the spending.

So here is a catch-up post showing the July progress. The worst month so far this year except for the month I had to take that big withdrawal out to pay the property taxes on the rental. And *BIG SIGH*, I won't be surprised if August is even less progress. I just gotta keep from getting us further in the hole.

All tickers at the bottom of the page have been updated with the July payments even though I didn't post individually about all of them.

I spoke too soon

2010-08-13T07:44:00.002-05:00

in my last post when I said nothing major had happened.

Okay...it's only semi-major, but yesterday morning I found a puddle of water in the laundry room. Turns out this morning we are getting a new hot water heater to the tune of $600-ish. It was a 1992 model, so it's time for the water heater. Just not the best timing for us!

If you don't have anything nice to say

2010-08-10T19:30:00.002-05:00

you should keep your mouth shut, right?

I'm blaming my ultra-negative view on all things financial for my blog absence. Nothing else major has happened. I'm just tired of feeling like a hamster on a wheel that keeps getting the wheel spun faster by outside forces.

Health insurance premium increases are going to take $42 of the $73/month raise I got a few weeks ago.

And then I got to thinking about what the expiration of the Bush tax cuts are going to do to our budget. I started quantifying it over the weekend, and barring a Congressional act (literally), we'll be paying at least $2k more next year. And we are FAR from a high income family. Check it out for yourself....the elimination of the 10% bracket is $835 more off the bat. Then if the child credits go back down to $500, that's another $1,000. Eliminate the preferential rate for dividend income? At least another $120. That's without taking into account the changes in Flexible Spending accounts or wondering if the deduction for state and local sales tax will be extended.

All this in an economy where average Americans are already stretched, struggling to hang onto their jobs if they are lucky enough to have one. It just doesn't seem like good sense to me. Hopefully, someone will knock some semblance of sense into Congress before it's too late!

I know. I know. It could be tons worse. So what if I can only pay down $6,000 of debt next year instead of $8,000. I guess in the grand scheme, things could be much much much worse. We have income, we have a home, we're pretty darn healthy. I was just hoping to see a little more forward progress on the financial side by now.

Capital One Update - July '10

2010-07-21T12:36:00.003-05:00

More snail-like progress. I made a slightly higher-than-minimum payment to make sure we'd cross down from the 4 digits. I only plan on paying the minimum for a while now, but the interest rate is a fixed 4.99%.

$15.89 paid. New balance = $997.78

And the great thing? We're out of the thousands!!!

A Must-Read for when the negative thoughts strike

2010-07-20T19:09:00.000-05:00

Persist without Exception....from mydebtcomeback

Financial Lessons for the 8 yr. old

2010-07-19T23:10:00.000-05:00

As you may know, I have fairly young children. I also am quite determined that my parenting duties include raising kids with financial awareness. It distresses me every day that my in-laws, (who were financially successful) obviously never imparted their financial savvy onto their children. I pray that I can do a better job of raising kids who can go out into the world and not come running back to mom & dad even into their 50's to bail them out of the latest financial mess. My mother-in-law must have known this; otherwise why would she have named me (a daughter-in-law) as executor of her will and trustee of the remaining assets.

Even though my children are only 8 and 4, I am trying. We do chore charts every week, and they are paid weekly based on what they have accomplished during the week. (Don't work = don't get paid!). We have complaints, we have whining, we have moaning....but they are always motivated when they get that cash every Sunday.

At the risk of running into flaming here, I do have what could be considered an extravagant ongoing expense for my 8 yr. old daughter. She loves to dance, and this week is tryouts for what will be her third year on a competitive dance company with the studio. No lies...it is expensive. There are more intense (and therefore more expensive studios) in the area, so comparatively it is a good option. But it is, nonetheless, a sacrifice I make.

(not my daughter)

After realizing that I could hire a twice-a-month housekeeper for what I pay to the studio (and the dancewear store), we had negotiations. She has agreed to be my right-hand cleaning helper each week in return for "being on team". It is a good indication how much passion she has for dancing since she kind of has a lazy streak....which is another thing I need to work on as her parent. It also helps me....and will ensure that I also don't raise a kid who doesn't have any idea how to clean a toilet or start the washing machine. We're 2 weeks out from the negotiations, and so far, so good.

On Saturday, we had another "lesson." I had purchased an accessory at the dancewear store that she decided she did not want. When I was leaving to run errands and return it, she asked if I would buy a pair of jazz shoes instead. The jazz shoes cost approximately $20 more than the item I was returning, and I just happened to know that she had $20 left from the vacation money she had raided her piggy bank for. At first, she balked about kicking in the $20 from her own money. I told her to think about it....the store is only a mile from home and we could always stop in and buy them if she wanted. About 30 minutes before the store closed, she asked to go buy them. She even said, "I can make back that $20 in about 3 weeks."

I am so glad she took her time making the financial decision, weighed the costs, and came to the realization of just how much work (3 weeks worth) it will take to replace this money. Could some of my lectures have sunk in? Based on what happened Saturday, I believe the lessons are working!

Kroger Credit Card & Chase Card #2 Update - July '10

2010-07-18T10:08:00.003-05:00

Virtually treading water with these two.

The Kroger credit card is the one I use for groceries and gas to earn free groceries and the 15¢ off per gallon of gasoline. I pay these charges every few days out of my current month's budget so I'm always paying at least the balance on the prior month's statement and therefore avoiding any interest charges on this card. The rewards are nice and Kroger is letting me float this balance without costing me anything. I added a $3 payment I got from Buzzback (surveys) to one of the payments this month.

$3.00 paid. New balance = $624.93

Chase Card #2 has been transferred to the HELOC, but I'm keeping up with the balance separate from the HELOC balance. This portion of the equity line was not converted to the fixed amortization and the interest rate is prime minus 0.5% (currently 2.75%). It also only requires an interest payment each month, but I've been sending an extra $20 or so in addition to the interest.

$20.13 paid. New balance = $2551.19

STRETCH FOR THE POSITIVE: Ok...it's a stretch, but I'm determined to quit being so negative and look for the positive in every post. If I divide the monthly interest charged ($5.93) over the average balance of these two debts ($3,187.69), it works out to less than a 2.25% annual rate. Not bad!!!

HELOC Update - July '10

2010-07-17T12:48:00.004-05:00

Time for some positive news around here!

No extra payments, but it is progress! For any new readers, this one was converted to a fixed 4.99% interest rate over 15 years. It is secured by the rental property and the monthly rent income is covering 100% of the payment.

$ 278.95 paid. New balance = $71,375.76

Since I'm always looking for reasons to celebrate, this brings the total debt below the $340K mark! WooHoo! Bring out the party hats!!!

And I was holding out hope for August

2010-07-16T12:14:00.004-05:00

(not my puppy)

until we all had dental check-ups. Now there is at least $1,000 worth of dental work on the calendar between the 4 of us! Maybe we'll just eat toothpaste for the next month or so....you can always find toothpaste for next to nothing if you watch for the drugstore deals!

It will be an absolute miracle if we can come out of this spring/summer without adding to the debt. Between the flood damage, invisible fence and shots for the puppy, the extended road trip, and now the dental work, it is taking its toll.

Overtime during this season of the year has to be approved, but if I find any....I'm definitely signing up for it!

Maybe I should just quit reading...

2010-07-15T20:00:00.002-05:00

Today has been one of those days where everything I read keeps me in this doom & gloom scenario.

From the 4th paragraph of today's post at The Dividend Daily:

There was a report out earlier today from the Employee Benefit Research
Institute that estimates 47% of baby boomers between the ages of 56 and 62 are
likely to run shy of the cash they’ll need to pay for basic expenses and
uninsured health costs in retirement. Investors need to stay focused on quality
income-seeking plays, and when it makes sense, take a flyer on a growth dividend
play as well.

From the 2nd paragraph of yesterday's post at The Dividend Daily:

According to figures provided by FICO Inc. yesterday, nearly 25.5 percent of
consumers, or nearly 43.4 million Americans, now have a credit score below 600.
Two years ago, this particular group was allowed to buy first homes without a
blink of an eye from bankers and mortgage brokers. Access to easy capital has
completely changed for this group as we sit here today. Is this fact priced in,
and how much worse will the stat get if the job market does not begin to gain
some positive momentum? We are trying to decipher this in our daily dividend
stock analysis.

And then read No Surprises Here from A Reformed Manager of Money. The links she posts are astounding. Especially the Slide #9 in that link:

For the first time in U.S. history, banks own a greater share of residential
housing net worth in the United States than all individual Americans put
together.

Is there hope? Do our children have any chance of having it as good as we did? I know it will be to their benefit to teach them frugalness, debt avoidance, and a hard work ethic. What am I forgetting? I want to make sure they are equipped to survive and hopefully thrive in this new economic order.

Positive News of the Day: I'm overdue for a haircut. I've been putting it off not wanting to spend the money. Today's local Groupon deal was for a local salon. $120 worth of services for $50. So I've already booked an appointment for a haircut, manicure, and pedicure. All for the cost of a regular haircut!!! With all that pampering, I might even feel like a kept woman. LOL

Final June '10 updates

2010-07-14T14:21:00.007-05:00

Posting this partly because we're already halfway through July! And partly to remind myself that everything is not doom and gloom around here. Progress is certainly not as fast as I would like, and I'm not sure July is going to show much progress at all....but I need to remind myself where I've been and that financial progress is not a microwave, but a slow cooker.

Chase Card #1:
$75.46 paid. New balance = $5,422.21

Money Market Loan:
$5.29 paid. New balance = $4,597.79

Net Worth Funding Goal: (click to enlarge detail)

Items to note:

Halfway through the year, but not quite halfway to meet the $15K goal. Really going to have to step it up to reach $15K.
Dividends paid during June were down (as compared to March) mainly because of BP. GRRR!
Nothing has been added to the rental emergency fund for a couple of months. We've been making some small, but necessary repairs to that property. Hopefully, that will change in July and more will be added to that separate emergency fund. My goal is to have the tenant deposit plus 6 months of expenses in that account (mortgage payments, association dues, and property taxes). I'm very close....but need another $550 in that account . I should at least be adding in at least 1/12 of the annual tax amount.

so I'm already having a pity party today

2010-07-14T13:03:00.002-05:00

and then I open the quarterly 401K statement. UGH!

And I'm reminded why I decided to halt future contributions. I decided during/after the last crash in March 2009 to diversify retirement sources. That's one reason we're holding onto the rental property so that all income after retirement isn't dependent on how Wall Street behaves.

For the 3 months, 401K balance is down 8.26% or about $12K. I guess the good thing is I have a long time before I plan on tapping this money.

avoidance

2010-07-14T08:43:00.002-05:00

yes...I'm avoiding this blog.

it's easier than facing the truth.

although logging onto the online banking this morning confirmed my suspicion that whatever cushion we had in checking is gone.

today is my day at home

so I'm promising that when I get back from taking both kids to the dentist, I will sit down and pull my finances back together before it gets any further out of control.

or maybe I'll do laundry. :(

Did you see?

2010-07-10T08:55:00.002-05:00

the pictures of the new home Money Saving Mom and her family bought WITH CASH????

She has links to the story of how they saved the cash for their first home at the bottom of the post.

Glad to be back in the land of the deals

2010-07-05T16:07:00.003-05:00

I am so glad to be home and getting back on schedule with my deal-shopping. I realize how lucky it is to have all 6 of my shopping places within a couple of miles of my home. I really wanted to snag some drugstore deals while we were on the road, but I had a hard time finding Walgreens and CVS close to where we were staying. Definitely not like home, where there seems to be a Walgreens on every corner!!

I do my main grocery shopping at Kroger. This is where I earn points for free groceries and a 15 cents per gallon off gasoline. But I shop for deals almost every week at Harris Teeter, Publix, CVS, Walgreens and Target. Target is the farthest away....at 2.4 miles according to Google Maps. I don't always hit all 6 places every week, but if it's a good week I will.

I had some CVS Extra Care Bucks that were expiring today, so I went ahead and made my weekly trip this afternoon. Now I know that paying full price at CVS is paying way too much for my frugal heart. I luckily had coupons for everything on my what's-on-sale list this week, so for what would normally have been $38.51, I handed over $7 in ECB's plus $12.94 cash and they handed me back $5 more ECB's!

Getting almost $40 of things we use on a regular basis for less than $15 makes me one happy camper!!! And honestly, is the only way we're able to stretch our limited income as far as we do!

Bank Visa - June '10 update

2010-07-05T01:11:00.001-05:00

I'm slowly getting through the mail that accumulated while we were gone. So sad that I have not been able to send any more than the minimum payment on these credit cards. The good news is that I'm not charging on them, so the balance WILL go down....slowly....eventually.

$57.39 paid. New balance = $2,840.59

Did you miss me???

2010-07-04T08:38:00.004-05:00

We just got home from a 10-day road trip! I don't even want to start adding up how much money was spent!! But there's not much I can do about it now.

The first part of the trip was for my daughter to compete at the Nationals with her dance team. They had a great competition! So exciting for her and all the teams at the studio.

The second half was a different type of obligation: Even though I'd rather forego spending the money, the dance team Nationals were held almost halfway to where my parents live. They are certainly not getting any younger (86 & 81), and I'm not sure how many more visits we'll actually be making to see them when both of them are able to actually enjoy us being there. I know it's good for us to spend time with them....those chances are limited. Some things outweigh the financial decisions.

Primary Mortgage - June '10 update

2010-06-22T00:32:00.002-05:00

One more update before I shut the computer down for the night. Just the regular old boring payment on the big loan. If I'm looking for bright spots....

The fixed rate for the next 28 yrs and 11 mths is only 4.5%.
I really do love where we live.
In only 5 more months, I can brag that we owe less than a quarter of a million. ---Did you see my eyes roll on that one???

$352.60 paid. New balance = $251,517.58

Chase Card #2 - June '10 update

2010-06-21T23:52:00.003-05:00

No significant progress. Just paying dibs and dabs here since this balance has been transferred to the equity line, and it's only costing me 2.75% interest. Until the Fed decides it's time for a rate hike, I'll keep this payment low and keep diverting extra funds towards my retirement savings and the higher rate loans. Extra funds? Who am I kidding? There are no extra funds these days!!!

$20.08 paid. New balance = $2,571.32

Capital One - June '10 Update

2010-06-21T00:48:00.003-05:00

Little by little...

And yes, Mrs. 444 is correct! The next update WILL bring this one out of the 4 digits!!!

$11.69 paid. New balance - $1,013.67

HELOC Update - June '10

2010-06-18T22:56:00.003-05:00

This loan is making consistent progress. I have been so blessed with such good tenants for this property. We sign a lease with the new tenants next week. And they are siblings of one that is moving out, so I'm not quite as leary as I would be with brand new people I didn't have any "history" on. The good news is that they have agreed to an 18-month lease!! I offered them $25 less per month if they would sign for 18 months...and that's what they wanted anyway!

June statement shows $277.90 paid. New balance = $71,654.71

Inspiring Quote

2010-06-16T07:35:00.001-05:00

seen on Twitter:

"God's ultimate goal for your life on earth is not comfort, but character development."

Final May Updates

2010-06-12T16:37:00.006-05:00

It's so stinking hot outside, I've resorted to trying to stay cool by spending a
~~few minutes~~ couple of hours at my desk getting caught up on the budget, bills and bank balances. Progress feels tremendously slow due to all the extra expenses with the the flood damage, the new puppy, and summer child care for my daughter now that she is out of school. I know I have so much to be thankful for, but it's hard to watch all the money come in then promptly leave with someone else's name on it!

Enough of my whining....here is the May wrap-up!

Primary mortgage - $ 351.28 paid, new balance = $251,870.18

Net worth funding goal - $1,285.94 added to net worth in May.

Net worth certainly decreased overall with the rollercoaster stock market, but at least I'm holding up my end of the bargain by continuing to pay down debt and add to savings.

Still in catch-up mode - Chase Card #1 May '10 update

2010-06-06T23:04:00.003-05:00

Gosh! I have been such a bad blogger. I've been very preoccupied --- started Spring Cleaning. And that is one of those phenomenon that once I'm in the zone, I don't dare switch gears for fear of losing momentum.

The deep cleaning is good for my soul. It keeps my mind off the bad news, the economic turmoil that I'm afraid our country has not seen the end of yet, the financial uncertainties I find myself dwelling on in spite of all the planning, working, and saving. Anyway, that's my excuse for not posting all the May updates yet. But here's a quick one for ya....

Chase Card #1....
$80.09 paid. New balance = $5,497.67

I will be back with more updates. But be patient...this is a big house....or maybe it just seems big when you're trying to fit in Spring Cleaning between work, family, weddings, graduations, and birthday parties.

Bank VISA - May '10 Update

2010-05-30T12:50:00.003-05:00

As promised, I'm trying to spend a good deal of time today dealing with the paper piles that have taken over my desk.

No extra payments for this credit card last month. But we're making progress!

$59.05 paid. New balance = $2,897.98

Chase Card #2 Update - May '10

2010-05-29T11:37:00.002-05:00

I'm still tagging this as Chase Card #2 even though the balance has been transferred to the equity line.

$21.74 paid. New balance = $2,591.40

Tonight is dd's recital, so I spent my morning getting hair in rollers and making sure all costume pieces are packed. I need to make a grocery run, then it will be time to start makeup and head downtown for the big performance tonight! Fun, fun day!

HELOC May '10 Update & Weekend Plans

2010-05-27T22:46:00.002-05:00

The best thing about this loan is that rent from the tenants is totally covering the payment (plus more)!

$276.68 paid. New balance = $71,932.61

I am trying to pull myself out of the funk I've been in this month, and I know that keeping busy and seeing results will do for my psyche than anything. We have commitments through Saturday for my daughter's dance recital and for my god daughter's high school graduation, but Sunday and Monday??? I'll be finding the wood that I know is under my desk somewhere. The papers have piled up, the checkbooks need balancing, and the shredder needs a workout. If I can gain control of this desk by Monday, I know I can start June off on a much better note!

Money Market Loan Update - May '10

2010-05-26T08:41:00.003-05:00

For anyone who might not remember, this is where I withdrew some money from my savings with full intentions of paying myself back. I was able to make two small payments to this "loan" in May: $6 from online surveys and a $7.17 check from Ebates. These small amounts are just that....small. But by using them, I've paid myself back over $100!!

$13.17 paid. New balance = $4,603.08

Capital One Update - May '10

2010-05-25T21:17:00.001-05:00

"Slow and steady wins the race."

$11.79 paid. New balance = $1,025.36

Thoughts after the Nashville Flood

2010-05-23T23:56:00.005-05:00

I know I've fallen behind on posting monthly updates. I've actually fallen behind on quite a few things. I really don't think it's due to the busyness that comes with the school year ending, preparing for dd's dance recital, or even trying to keep up with the workload of my day job. Honestly, this flood has affected me more than you would anticipate.

Yes...we've been thrown into an immediate "home repair" project which leads to chaos inside the house and that unsettling feeling when checks are flying out the door faster than you can keep up with them. It's strange how each individual reacts differently to crisis.

My husband has been short on patience because of the "mess" that comes with trying to live in a space that the flooring and baseboards are ripped out, tools and saws sitting around everywhere, everything out of place, laborers that don't do their work exactly the way he would. That is the chaos that makes him crazy. (The good news is that he's 100+ days sober...although there were a few days I highly encouraged him to leave the house and hit an AA meeting ASAP).

On the other hand, it drives me absolutely crazy to have this project going with no pre-planned budget, uncertainty just where the funds are going to come from, or exactly how many dollars it's actually going to cost! So I've suffered from my own dose of stress and anxiety. And, in typical fashion, I've done my best to ignore the whole checking account for the past three weeks.

But more than that, it's the stories out there of those who have lost everything. I think they call it "survivor's guilt". The stories that really hit my heart are the elderly (70 and 80 year olds) with paid-for homes who were just getting by with their Social Security checks. Now some don't even have home to go back to and others don't have the savings to restore what's left into a safe and habitable place. To think that their entire financial well-being has been destroyed by something no one ever saw coming is just beyond what my brain can fathom right now. Because I'm one of those weirdos that actually reads the public record section of the newspaper occasionally, last week I found out that some of my closest neighbors were just days away from foreclosure. Although we're close, we really don't discuss financial issues, and I'm not comfortable bringing it up with them. But I spent a couple of days in constant worry and even one night where I dreamed of nothing but mortgages, loan balances, courthouse steps and more mortgages. Talk about a nightmare!!!

Anyway, it's kind of been three weeks where the glass feels even more "half-empty" than usual. I'm trying to dig my way out of the funk because I know that pessimism doesn't help any of us!

Updates to come later in the week. It's getting late, and I definitely don't need to start off another busy week more sleep deprived than usual. I do hope it's a good week for you!

You can't time the markets

2010-05-14T09:14:00.004-05:00

That's the old adage anyway. Despite that being drilled into my brain for years and years, I'm finding myself wondering whenever there is a sharp drop if that day might be one of the lowest points of 2010. Why?

Because I've decided to convert part of my traditional IRA into a Roth in 2010. Why? It has nothing to do with the income limit being lifted...our income has never been high enough to disqualify us from making a Roth conversion. It has nothing to do with being able to spread the tax over the next 2 years. I'm quite fine with paying the tax in 2010, since I don't anticipate tax rates being lower in 2011 and 2012.

But, we have set aside $5,000 for energy-efficient improvements (namely windows) to put in place in 2010. These improvements will qualify for a 30% tax credit. So I've decided to convert the amount of my traditional IRA into a Roth that would translate into a $1,500 tax bill. I won't be out of pocket anything, but I will get that IRA money into my preferred retirement vehicle.

Of course, I'd love to make the conversion on the absolutely lowest day for the stock market. That would mean more shares get thrown over to the Roth with full anticipation that the value will rise over time. So when is that day???

April Net Worth Funding Update

2010-05-12T08:49:00.004-05:00

April turned into a very good month for progress towards the 2010 Net Worth Goal. You can see that I added a new line for the Roth Funding goal I set midway through the month. I was also able to add $165 to my existing Roth accounts as a 2009 contribution.

I hope this progress continues. It's nerve-wracking at the moment with the money we need to spend to get our house back in order after the flooding. We already had some other electrical/appliance repairs that came up even before the water damage. And we added a new member to our family in April (a 2-month old black labrador retriever) who needs all her shots. We're also trying to figure out how to pay for an invisible fence for our acre-plus yard so she can burn off all that puppy energy without running down the street or requiring constant supervision. It's kinda one of those "when-it-rains-it-pours" scenarios....and I guess based on the events of May 1-2 you can take that literally. LOL

So my focus is changing...we're in the land of minimum payments on the debt since the priorities are now to pay for these larger unbudgeted expenses without taking on any additional debt AND to fully fund that 2010 Roth IRA.

We must always look for the good

2010-05-10T20:31:00.003-05:00

As a follow-up to yesterday's post, I would be remiss if I left you thinking that all is despair and agony here. There are SO many wonderful stories out there, I'm sure I won't be able to remember them in the 15 minutes I have before I round up kids and herd them off to bed.

The volunteer effort here has been enormous. Even before the news graced the major media, neighbors were helping neighbors. People were rescuing horses from rising floodwaters. If you owned a boat, you more than likely were out rescuing people from their homes.

Last Monday morning, the day after the rains moved on, people started returning home (if they could). And what was amazing was the outpouring of support and help from family, friends, church groups and even strangers. At one of the large condominium complexes hit especially hard by the flood, the volunteer turnout was so large on Saturday, no one could find a parking spot!

Hands on Nashville, which is coordinating many service projects all across town, reported today that through their organization alone, 39,000 volunteer hours were logged from 5/2 through 5/9! That is just astounding!

We've already had telethons and performances solely to raise money for flood relief, with more being planned.

FEMA arrived last Monday, and declared they had never been to a place where so much of the disaster cleanup was already underway before they arrived. That speaks volumes to me!

This flood may have washed away alot, but it sure didn't take with it the love we have for our city and the people in it. I couldn't be prouder to live in The Volunteer State right now.

Prepared for the Unexpected?

2010-05-09T11:19:00.005-05:00

Yes....that is a rooftop.

Sorry for the lack of posts this week. It has been quite surreal here with all the damage and devastation our area suffered from the flooding last weekend. I'm sure you seen pictures. It is so very sad...so many people have lost everything including some who lost loved ones in the rising floodwaters. And yes, the Titans football stadium looked more like an Olympic swimming pool, the grandeur of the Opryland Hotel was reduced to resembling something from a scene in the Titanic. But real people with kids and jobs and mortgages have lost their homes, their cars, virtually everything they own. They are calling this a 100, 500 or 1000 year flood depending on what news source you listen to. We just don't have floods here! Tornadoes-- yes, floods - NO! In fact, in a city with almost 600,000 people only 6,000 had flood insurance. Which means much of this is a total loss. FEMA will help, but they have low limits on the dollar amount of help they can provide. I'm expecting another wave of foreclosures in our city as people decide it's better to walk away since they will not be able to afford to restore their homes to a habitable state and replace everything they need to function.

As for us, the damage was minimal. We had about an inch of water in our lowest level so we’re replacing carpet and flooring in our rec room, laundry room and one bathroom. Here is a picture of all we lost. Nothing compared to many. Unexpected? Unplanned? Certainly, but we’ll use some savings and tighten the budget even further the next few months to get it done.

But for some of my "neighbors", there was no way to prepare for a catastrophe that no one predicted, no one could have imagined. It just goes to show, as hard as you try, no matter what the financial gurus say, you can not plan for every emergency.

Editing to add a link to more pictures of the devastation: Click Here