October wrap up

My retirement fund and my debt paydown reached the exact amount I have paid off in debt, 14,000. It is not a lot in the grand scheme of things but it means a lot to me. I am floating in the big debt sea and can see neither shore those little elements help to make your day.

Despite a really lousy financial October, I still am putting $200 to pay down debt. I have newly resolved that I no longer need web space I WILL be closing my website. That is a painful choice but I think we can do it. I wrote about it before here...

The October renewal plan:

• 
  Training 1 hour every day. read in a chapter, study something having to do with MS Sharepoint. From 8-9:30 every day.
• 
  Put money into savings. Currently I am not saving enough. It is a real problem. I am not sure I have calculated it correctly but I have noticed when the payment is automatic I put more away consistantly to my debt then at my other cards. I need to replenish our emergency fund. I had to borrow $500.00 to cover for my husband. He came up a bit short on the electric bill. So I have set up an automated payment schedule. Well see how November handles that and if I miss the money. (The budget is so tight I am sure I will.
  
• My plan is to be debt free in 35 months. I do love the snowball calculator web site http://www.whatsthecost.com/. It helps me to stay the course and not forget that #1 I have made progress and #2 I have to keep paying down the debt. On the current plan I will pay off CC#2 by October of next year (2010). I dont want to look at the rest. But I did. And its not so bad really.

Here is the run down:
CC#1 is Paid off Bal $0

CC#2 13.49% $3,833.69
CC#3 11.24% $3,590.70
CC#4 9.90% $3,690.93
CC#5 4.99% $874.97
CC#6 3.99% $2,023.11
CC#7 3.99% $11,363.51

Total is $25,335.13

So If you are following this And I know no one is I have had a bit of a back slide since July. Most of that is due to DD and College. Also some of her health issues. But I believe it will get better and I am going to just keep pusjing forward.October 2012. I can do it. I have no other choice. I Refuse to live in debt for the rest of my life.

I thought I had 6 cards and I have 7 shudder and ugh. I am paying off in interest order. I get dave ramsey's psychology first better now. On card #5 I have an automatic payment. Once it went below 1000.00 I was like thats it boom lets just knock it out. The thing is It has the LOWEST interest rate and it is until the balancce is paid off. I am better off sticking to CC#2 with a rate of 13.49% and getting rid of it. There was a time when I had 18000 on a 24% card so I know truely I am making progress. but it is very hard to feel like you are making progress. But I CAN do it. and I will do it.

Things that I have done wisely:

I am proud of myself for reducing the interest rates I am paying to the best of my ability.
I am proud of myself for trying not to carry cards in my wallett I pay mostly only cash. I have to say mostly because last month there were a bunch of unexpected medical expenses for my daughter. While you can call this murphy's law or something. It was frustrating because I do not believe she needed to go to the emerg room over a sprained ankle. So I am mad at the dicisions her employeer made for her and did not pay for.
I am proud of myself for keeping on the path to get out of debt even though It is hard and tiresome
I am proud of myself for having a budget and knowing what I can spend and what I should not.
Life is a journey. and I am on the right path for myself.

I am not a financial professional. If you are looking for financial advise you should seek it elsewhere. If you would like to join me on the journey, walk with me for a while and be my friend......

Still in the rowboat

I have started a number of times trying to write about finance. I find it to be really hard. I have felt like I was in the middle of the sea in a row boat with no shores in sight. The thing about that is I know you have to stay the course. Frankly there is no going back to having nearly 40K in debt. I do not want that life. And I don't want to maintain this level of debt either.

I know

1) If I had not started the journey when I did I would have had to declare bankruptcy - especially as many cards are now raising their rates & minimum payments.
2) I want to retire some day and I cannot do that carrying this debt burden.
3) I want my son and daughter to live a debt free life so they can learn healthy attitudes and carry that behavior forward into their own lives..

Knowing and feeling are two different things. Right now I feel despairing that I will ever get out of debt. And I relate (as I often do) to Paid Twice's journey that knowing there is light at the end only seems to invite Murphy to stop by more often. (you can read her post here http://www.paidtwice.com/2009/09/09/the-home-strecth-can-be-as-difficult-as-the-start/)

It is much easier to know what I want... College for my children and a house.

I have about 2.5 years left until my DD comes home from college. So far I have only had to borrow about 4k (Her college is 32K per year so keep it in perspective) I am willing to be in debt for her degree. I want her to have an education. It could have been cheaper, but She is happy.

The house debate within myself continues to rage. There are a lot of factors. I really wanted to take advantage of the 8K house credit. But I think my DH and I were a little ambitious there. It would have been a stretch. And while I think we are a good risk I have no idea if a mortgage lender would see that and grant us a mortgage. And even if they did grant us a mortgage would it be enough for me to get the type of house I would want.

It might be better to wait. I think If we take our time and do it carefully I will get all the things I want but I am the least patient person on the planet. All I can offer myself is that there is hope at the end of the tunnel.

So with Mad money Monday in mind....

So I am turning to the tool...

What's the cost to re-evaluate where I am today.

I have to account for some of the setbacks that I had during August....


Setbacks

Man oh man I know every dollar needs to have a purpose but right now the names all seem to be debt. And I cant even cry misfortune. Lack of planning? maybe, a little hid under a rock definitely, but its time to stand tall, take the hit and get back on the wagon.

Like weight watchers you are more apt to stay on track if you track your progress. Over the summer I have to say time has been fleeting at best and I have often been derailed. The thing is I know I need to get back on track. Right NOW.

So starting today, I logged into many of my different accounts. I have created an outline for My October budget. I will also have to do a where did my money go budget but I cant face that yet. And seriously I will only avoid getting back on track if I have to beat myself up. So today Is no judgment Monday. Just evaluate where you are and what we can do today...

I have to wait till month end to get the true numbers. And I will be receiving a check back from the college to pay back money I was forced to put on a credit card for some of my daughters education because the financing was not lined up. So I charged $2680 to CC#2 (Currently focus of the debt pay down. ) I also charged school supplies and gas because this card was having a promotion I wanted to take advantage of. Time to get back on track...

What's the Cost predicts my debt pay off, given my current standing (which includes the almost 3k in education), to be September 2012. I am sure when I adjust the numbers for the education charges I will come back from that date a bit. More like something around May 2012. Not surprisingly the first card of focus is CC#2.

So we are back to the 3 year plan. Its a long journey to pay down nearly 40K in debt. It looks like I will have paid off most of my credit card debt as my DD graduates college. I can live with that. The only worry I have is that now the minimum payments are larger from certain of my cards how will that effect my schedule. But onward. Row Row Row


I am not a financial professional. If you are looking for financial advise you should seek it elsewhere. If you would like to join me on the journey, walk with me for a while and be my friend......

Debt elimination vs savings

I read Paid twice's blog often. I have found that if you surround yourself with people who are on the same path for a goal you will be more likely to achieve that goal. I really really want to be out of debt. I can not ignore the huge credit hunk of change I owe. And I have noticed that the interest rates did indeed go up. The banks want a little more from me... I do not really want to give it to them but I did borrow the money.

I currently have 6 cards that have a balance on them. 3 of the cards are at a fixed rate until the balance is paid off. I like that fact. It saves me a LOT of money. The other three cards drive me bonkers. CC#2 is the currrent card I am paying the largest amount to each month. CC#3 will be next and CC#4 has a 9.9% rate that has not increased... However... I am charging my web design space to CC#4. It is $14.00 per month. So I eliminate any debt reduction by the charge. Previously I did not want to get rid of my domain name. But currently my job focus is elsewhere and I no longer need to post a portfolio. And if I did need to host a web space I could sign up again. Nothing there is critical any more. So it has to go. It is important to revisit these charges. Because as few as 3 months ago I felt differently. But my career goals have shifted just so slightly and I feel it is no longer necessary to have web space. Actually I feel it is foolish to hold on to something that is costing me money for no benefit.

So How do I feel about Debt elimination over savings?
Well I am in the middle. It has been saving grace that I have paid down as much as I have so that when issues come up like vacation, child's father not paying for college and school expenses I just reallocate some of the debt elimination/repayment money to the current spending challenges. Life does happen. Just because I got myself into debt does not mean my child has to pay and pay. She will have her own challenges. And having a college degree for her is so important to me I would do a lot to make sure it will happen. I would even take on more debt. I know its not Dave Ramsey's philosophy - but he is a multi-millionaire and he funded his kids schools long ago. Each of his kids are in college. There is a classest divide in this country. Those who do not have good skills or a degree have a much harder time in life supporting themselves. I want my daughter to have a degree so she can get employment. I am committed to it.

SO Anyway....

I also see the value in building up savings. I used a little savings to carry us at the end of May. Things were just too tight. That is why we have savings, to bridge the gaps, so we do not feel the need to put charges on the credit cards. Well.... I would like to pay back to savings the money I borrowed. But I chafe at the pace of debt repayment. I want it all to be over now. I want to be debt free today. I also want to be skinny now and wanting it does not make it so.

There is a rhythm to each financial year. My spending is always higher in the summer because the child is home, then there is back to school, then Nov birthdays and then Christmas. So If I am honest with myself Aug - Dec are always slimmer then Jan - July. The BEST debt repayment months are during winter. But I have felt the power of debt elimination. I feel how wonderful it is that I can decided to pay less each month if I needed to. I am committed to paying of the remaining balances.

Each month just a little more goes to elimination and a little less goes to interest. It is so powerful to be able to make progress.

For myself the argument for savings is a big one we want to purchase a home. We will need to have money for closing costs and other expenses. I am not sure if one month's savings would make a dent so I keep eliminating debt. But that is where the tug and pull comes from. Rationally I think we will end up purchasing a home in 2 years after the debt is much lower. We'll see. If they offer the tax incentive again next year it will give us pause... again.

My actions are to debt elimination even though some times I feel the savings pull. I almost always choose to put the money into debt pay down. I just don't want to live a life with an expensive anchor anymore.

Food for thought. Enough ranting... thanks for reading

I am not a financial professional. If you are looking for financial advise you should seek it elsewhere. If you would like to join me on the journey, walk with me for a while and be my friend......

Well the journey continues

July was a hard month. Financially and emotionally. A lot of events happened. Two family vacations, visits from DD, visits from my mom, and a few unexpected bumps and bruises. So my blog has been quiet. There was so much going on I didnt try to control the chaos, I just went along for the ride. Thats the name of the blog.... road traveed. And this months was a doosey. So I have been bumped and bruised. Today I have picked myself up. Brushed myself off and I am ready to be back on the financial trail.

The damage:

After vacation spending through the end of june and All of July we put $1486.88 on credit card for vacation. There may be other expenses through checking but on a credit card for two vacations $1486.88 is not bad. There was a lot of pressure to go on both of the vacations. The beach vacation is a tradition we have been doing for about 12 years. My daughter would not let me not go. Financially my husband contributed a lot more this year and thank goodness he had a lot of overtime cash he spent so we did not have to run too much on the cards. He is an awesome man.

The second trip was a vacation to visit Husbands family. I did not have a lot of vacation time left so I had to drive down on a different day and so there were gas and food expenses. It was not too bad and as it was for his family I would do it again.

Time now to get back on the horse though. Over all I am not too upset with the numbers. I want to be able to take it in stride although It makes me sick to have a debt anchor hanging around my neck. I look forward to the day I do not have to write checks to the banks and I am free. It may take longer then the origional plan BUT I will get there and I am determined to be debt free. One day at a time.

As a result of being away my desk has gone to pot. Last week I organized all the papers to help make order from chaos. This week is health care focused. Next week will be how can I save money by taking lunch to work. Thank goodness I can sit at my desk one day pr week. I do not know how I would get it done if I did not have that luxery.

I am not a financial professional. If you are looking for financial advise you should seek it elsewhere. If you would like to join me on the journey, walk with me for a while and be my friend......

The good the bad and the UGLY

First the Good....

I have paid down $15,939.98 in debt. My debt total is UNDER 24 K! Just under... but still under. I like seeing those numbers drop.

Then the Bad...

I had to pay mostly the minimums this month. I took $250 out of savings to cover daughter coming home from college and to pay the back balance on the sprint bill. I have had an increase in groceries this month and Man are things tight. Although I paid $95.00 to debt over the minimums. So It was not a waste of a month but the progess is not where I want it to be and I chafe at the pace.

The Ugly

Life happens. It makes progress slower then I would ever like but I acknowledge that life happens. I do have a daughter. I cant ignore her untill all debt is paid off. I desperatley need a hair cut. I really need to get a couple of new clothes so does she. I am postponing all of those things in order not to incur any new charges to the credit cards and I acknowledge that this road is HARD. I did replace $100 back to savings. I am concerned that I need to show the ability to maintain a balance if we choose to buy a home. I need to replace the funds I took out sooner rather then later - which means financial health at home not on the credit cards. They will see progress on the cards but that wont be as important as maintaining the balances.

We are on the road to debt freedom. We will get there eventually inspite of the side trips. And Last May was a rough one too. If history is a predictor June will be tight as well. With DH's birthday coming up in June It will indeed impact the wallet. So we shall see.

There is always hope. somehow it will get better.

I am not a financial professional. If you are looking for financial advise you should seek it elsewhere. If you would like to join me on the journey, walk with me for a while and be my friend......