After Reading this post on All Financial Matters I started thinking how true it was for me that there is a definite pattern to stuff I need and when the money is provided.
June has been bad. Financially. I have noticed that there has been a river of outflow on my checking account. There has been a change on the income. I see the drought happening and I am scared really really scared. But I know that I will work hard to find a solution. I do not want to bring this baby into a world where I cant send another child to school. No way. So in order to make sure we don't repeat with child no 2 what happened with child #1 I am on a mission to pay off my debts. I think I need to get a second job. I have hope I will be able to start right after vacation. I do have to work July 12 and I wont be able to work weekend of Aug 22nd but that mostly frees up my commitments for the summer and beyond. Once my daughter goes off to college I will be free most weekends. Dear fiancée will be frustrated by lack of me being around much but he knows how important financial stability is. He worked until 8:30 last night so he could earn some extra OT. I don't want him to get burned out though. Of course I don't want to get burned out either.
So here are some the related threads for all of these random thoughts...
My mom said she was planning on sharing her inheritance with me. I think she is being very generous. but now I feel like I know why the car has needed maintenance and why my checking account is pouring out of my account... Because I am going to receive money. Sigh. I want very much for the money to be used towards the down payment of a house. I want very much to be smarter then I have been in the past. I want to not be in debt. She has not told me how much she is sending. We have talked about amounts in the past and I am not sure how much it would be.
Here are my options for the windfall... Or maybe its just a list of financial needs I currently know about...
Contact lenses $350
Car $1000
Vacation $1000
Replacement of emergency Fund $600
Debt
$30,000
House down payment
Small 3% or $11,250 to $12,750
Med 10% or $ 37,500 to $42,500
Large 20% or $75,000 to $85,000
6-8 months of emergency Savings... $20,000
So the plan if its $10,000 then I will put $3000 towards Car, Vacation and replacement of emergency fund and find a mutual fund to earn decent interest on the 7k while we get ready to purchase a house It will also serve as a back up fund for emergency savings and down payment.
If she gifts me $20000 I will put an additional 2k towards my debt and I will put the remaining $15k into money market fund. At least thats what I think would be wise. That way I will be able to at lease make the 3% down in June if we are serious about the purchase of a home. I think Fiancée is. I know I am.
Grrr I cant remember my password to the debt snowball and as I am at work I have no way to look it up. Here is the deal. If I slow the progress of my payments from $1000.00 to 800 per month that would help me cope with the loss of child support. Rough numbers it only adds 8 months to the length of time before I am debt free. I am so calling Dave Ramsey to scream.
If I get a second job for 6 months and earn 350 per month 2150 additional dollars can be added to the debt. That will also help. For the terms of my permanent employer I cannot work while also on maternity leave and I should be able to get 12 weeks Its very generous. I do like the benefits of staying. Its one of the reasons why I do stay. Its certainly not salary. Its flexible time off and lots of generous leave. These are my choices.
So anyway...
If I were to take all 20K and roll it into my debt. would I be able to know it out in a year? Would I apply that money towards a down payment of a home. I cant truthfully answer that. I think the debt motivates me. I think the dog yipping at my heels is what keeps me focused. You saw how bad I am feeling this months and I did not know the money was coming. So wouldn't it be wise to keep on with the plan and use it for a home? Not sure I will have to include dear fiancée into the question.
The thing is... it was the crushing defeat I was felt when I thought about using a gift from my grandmother to pay off debt instead of a down payment for a home that gave me the willies enough to say NO MORE DEBT. It was the dividing line for me that was the moment of truth. So ... how can i ignore the gut wrenching telling me truly gut feel what to do with that money. I have to listen to that voice or what else do I have? I know in my heart I will pay down the debt. I have a plan. With 4 years is a long time. It is also a lot of debt. Accumulated over quite a few years. Most of what I purchased is gone. Most of what I paid for is long long gone. not its just interest on interest. I will not trade my 50s for debt. I cant do it.
Friday, June 27, 2008
Monday, June 16, 2008
June bug
Today I am procrastinating. I really really don't want to talk to my ex husband about college funding. I really don't want to talk to him at all. I have been sticking my head in the sand and hoping it will pass. And yet I also know the clock is ticking. I am trying to get it all done soon so I can go on vacation and spend time relaxing. I just don't want to do this one thing.
I have also realized because May was so expensive that I am going to need to pull funds from somewhere to get stuff done this month. There seems to be a huge sucking vacuum on my checking account. I am really trying to stop the river flowing out of my checking account but every time I plug a hole another one seems to appear. I really feel like I am sinking. But then I take stock of where I have been and I know I can continue to pay down the debt. Here are my options for June.
1) Dip into emergency fund
2) Pay just a little less then the $1000. I have budgeted for the month.
3) some combination of both.
For the last 6 months I have been putting away a little more then $1000. Typically its $1080 for the month. And I have been putting money into the Emergency fund. BUT right now child needs contacts and We need $400.00 cash to go on vacation. And if you have doubts that there are benefits to going on vacation just read this article in the NYT. I was sold. Vacations are good for you. I need one. I am so stressed from getting a sassy teen through High school I need a vacation. Besides $400.00 for the week is not a lot of spending.
So how to Squeeze $359.88 + $400.00 from the budget...
I had planned to use the stimulus for the vacation house $400.00 of it anyway. Its gone. I have also rc'd the last child support payment ever. So my budget is now reduced by $500.00 per month. I thought I could wing it but I am thinking I need to re evaluate the plan.
If I pay $800 to debt instead of $1000. It gives me $200 to vacation. I have $200.00 in checking I can use. for the $400.00 vacation money. The $359.88 can come from savings for the contacts. So there it is. I can do this budgeting stuff and make it work.
I calculated the Min payments of all my cards. That adds up to $671.00 So Even paying only $800.00 to debt I still am paying down the debt this month by $129.00. Also If I rcv the $150.00 from work for expenses I will apply that right to the debt. Then it all comes out okay. Ahhh Beach here I come.
Even with my money woes I still keep wanting to purchase maternity clothes. I need another two pairs of pants for my work. But NO GO. I will have to make what I have work for now. If I am shorting my debt repayment $200.00 No pants for me July - or Maybe August.
I have also realized because May was so expensive that I am going to need to pull funds from somewhere to get stuff done this month. There seems to be a huge sucking vacuum on my checking account. I am really trying to stop the river flowing out of my checking account but every time I plug a hole another one seems to appear. I really feel like I am sinking. But then I take stock of where I have been and I know I can continue to pay down the debt. Here are my options for June.
1) Dip into emergency fund
2) Pay just a little less then the $1000. I have budgeted for the month.
3) some combination of both.
For the last 6 months I have been putting away a little more then $1000. Typically its $1080 for the month. And I have been putting money into the Emergency fund. BUT right now child needs contacts and We need $400.00 cash to go on vacation. And if you have doubts that there are benefits to going on vacation just read this article in the NYT. I was sold. Vacations are good for you. I need one. I am so stressed from getting a sassy teen through High school I need a vacation. Besides $400.00 for the week is not a lot of spending.
So how to Squeeze $359.88 + $400.00 from the budget...
I had planned to use the stimulus for the vacation house $400.00 of it anyway. Its gone. I have also rc'd the last child support payment ever. So my budget is now reduced by $500.00 per month. I thought I could wing it but I am thinking I need to re evaluate the plan.
If I pay $800 to debt instead of $1000. It gives me $200 to vacation. I have $200.00 in checking I can use. for the $400.00 vacation money. The $359.88 can come from savings for the contacts. So there it is. I can do this budgeting stuff and make it work.
I calculated the Min payments of all my cards. That adds up to $671.00 So Even paying only $800.00 to debt I still am paying down the debt this month by $129.00. Also If I rcv the $150.00 from work for expenses I will apply that right to the debt. Then it all comes out okay. Ahhh Beach here I come.
Even with my money woes I still keep wanting to purchase maternity clothes. I need another two pairs of pants for my work. But NO GO. I will have to make what I have work for now. If I am shorting my debt repayment $200.00 No pants for me July - or Maybe August.
Keeping up the Debt Lifestyle
The debt life style. I am trying very hard not to have a debt lifestyle. I have noticed subtle changes inn my life to this end. I enjoy getting the mail. I actually look forward to getting the mail and opening the bills to see that I have made progress on my debt reduction. Even though its slow it is monthly progress. I have a three year plan. I am not sure right now that it will happen but I do have a plan. I am trying to make it happen. Murphy's law - that ole Murphy he likes to visit though. I am starting to change how I handle things though.
I believe debt does not need to be a part of my life. I know that I promised my daughter a new ipod for her graduation gift. I also know that she needs a 6 month supply of contact lenses. I have most of that money set aside for the cost. I will have to take some from savings but that is why I am putting money into savings. Its a good plan. It works. Ant truth be told her needing contact lenses is not a Murphy expense it is a planned expense and I had a plan.
One of my wake up calls happened when I realized I could no longer make all the minimum payments on the cards I had. I knew then something had to change. Last month I put over $400.00 to principle. I have changed my ways. I used to feel like debt was just a part of my life because of the decisions I had made and the choices I made. It was just a burden I carried like a rock that comes with me everywhere I go. Well I choose to put down the rock. I choose today to be debt free.
Advertising is all around us every day. My daughter is so susceptible to it. She has these ideas of what she "needs" for college based on things she has seen. I keep encouraging her to wait and see what she truly needs. I want her to understand that spending money on stuff you don't need now robs tomorrow of what you may need then.
Using a credit card means that you don't have the money right now. It also means you will not have money for the next year while you pay down what you are using it for off. Are you really willing to trade tomorrow's spending money on a quick bite to eat in that restaurant. Is the peer pressure so great that you cant do with out it? Going into debt means you have to work at that job you don't like - for a little longer and it will take your youth.
Each Summer I go on vacation to the beach with friends. Keeping up with the Jones' has always been an issue. They allow their kids to pick out a sweatshirt or a t shirt or outfits that all match. I have mostly resisted. I tend to allow my daughter one item she would like to last for the year as a reminder of the fun week she had. She has always been mostly okay
They all make more money then I do. but I think I enjoy what I have more then they do. Does that sound weird? They run from place to place each day. I tend to be a bit more of a home body. I feel like I have more quiet moments with my daughter and my future baby.
Maybe it is just a matter of style
I believe debt does not need to be a part of my life. I know that I promised my daughter a new ipod for her graduation gift. I also know that she needs a 6 month supply of contact lenses. I have most of that money set aside for the cost. I will have to take some from savings but that is why I am putting money into savings. Its a good plan. It works. Ant truth be told her needing contact lenses is not a Murphy expense it is a planned expense and I had a plan.
One of my wake up calls happened when I realized I could no longer make all the minimum payments on the cards I had. I knew then something had to change. Last month I put over $400.00 to principle. I have changed my ways. I used to feel like debt was just a part of my life because of the decisions I had made and the choices I made. It was just a burden I carried like a rock that comes with me everywhere I go. Well I choose to put down the rock. I choose today to be debt free.
Advertising is all around us every day. My daughter is so susceptible to it. She has these ideas of what she "needs" for college based on things she has seen. I keep encouraging her to wait and see what she truly needs. I want her to understand that spending money on stuff you don't need now robs tomorrow of what you may need then.
Using a credit card means that you don't have the money right now. It also means you will not have money for the next year while you pay down what you are using it for off. Are you really willing to trade tomorrow's spending money on a quick bite to eat in that restaurant. Is the peer pressure so great that you cant do with out it? Going into debt means you have to work at that job you don't like - for a little longer and it will take your youth.
Each Summer I go on vacation to the beach with friends. Keeping up with the Jones' has always been an issue. They allow their kids to pick out a sweatshirt or a t shirt or outfits that all match. I have mostly resisted. I tend to allow my daughter one item she would like to last for the year as a reminder of the fun week she had. She has always been mostly okay
They all make more money then I do. but I think I enjoy what I have more then they do. Does that sound weird? They run from place to place each day. I tend to be a bit more of a home body. I feel like I have more quiet moments with my daughter and my future baby.
Maybe it is just a matter of style
Monday, June 02, 2008
May wrap up
I am glad to say good by to May. It has been a hectic month as evidenced here in my few posts. I try to post every Monday and I can tell even those days were crazy for me. I also have not been feeling well with morning sickness. Nausea is not fun. Given all the months expenses I was very surprised that we were able to stay on track at all this month. I expected to be writing tales of woe. I have updated my side bar percentages and to date I have paid down 15.37% of my debt. The total.... Drum roll please is.... $6,116.14. Phew. I have never had that much money in my life and yet I give it to the banks. Let that be the lesson DO NOT use credit cards. Save a little, pinch a lot. You can do it.
I told the fiancée how much debt I had paid off and he was stunned. I am too. Of course some of it is wind falls. Some of it is good luck. Lots of it is hard work tracking all the ins and outs every month.
Despite travel and graduation I was able to ...
I put an extra 88 dollars to my snowball this month.
My current expected date to be out of debt is July 2011. (An entire month sooner then when last calculated!)
I was feeling overwhelmed because of all the expenses we incurred this month. In truth I am making progress. We hosted a celebration party for graduation and I was still able to make my bills. Now vacation next month and daughters new i pod is a different story. Not sure where that is coming from. I have to do the numbers and see how much was really left over and how much I can spend on the vacation. Its going to be tight.
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......
I told the fiancée how much debt I had paid off and he was stunned. I am too. Of course some of it is wind falls. Some of it is good luck. Lots of it is hard work tracking all the ins and outs every month.
Despite travel and graduation I was able to ...
I put an extra 88 dollars to my snowball this month.
My current expected date to be out of debt is July 2011. (An entire month sooner then when last calculated!)
I was feeling overwhelmed because of all the expenses we incurred this month. In truth I am making progress. We hosted a celebration party for graduation and I was still able to make my bills. Now vacation next month and daughters new i pod is a different story. Not sure where that is coming from. I have to do the numbers and see how much was really left over and how much I can spend on the vacation. Its going to be tight.
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......
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