I was reading my blogs and I read this article. I want to add my here! Here!
http://gradmoneymatters.com/
I have been stressing about having a new baby and worrying about my personal economy. To the point where I exploded last night.
But here is the thing. We have a solid financial plan. I am not going to be in debt forever. I am not going to take on unheard of levels of debt to compensate for not having money today because I know I am going to need all of my funds tomorrow.
There is always news that’s why they call it news. Try to keep yourself grounded.
Take care of yourself. No one else is going to pick you up when you fall. Be self reliant.
If you need help get it. You don’t have to be alone. You do have to do it.
I have had to give up my cookies. I am bitter about this. I am very bitter actually. But for the health of my baby I am giving up sugar. I can do it because I have to. Well I also have to get out of debt. So I will because I have to. I can’t live with the bank cards having power over me. I borrowed yesterday so today I can’t play. I did it to myself. BUT I am not getting out of the hold myself. I have read a thousand blogs. I listen to Dave Ramsey. I have read PF books. I have slowly over time created a plan. Knowledge did not come instantly for me. It took time and patience with the process. (I am not that patient)
I am just one pea in a pod. I am a single mother who is soon to be married again. I worry about our plans for what could go wrong. But we have solid plan (Or so I think) I do know I am just one spot on the scatter chart. I do not make the trend. As a matter of fact most of the time I buck the trend.(Thus the road less traveled) I am also not giving up on making preparations for my future. I still figure that if I get my MBA by the time I am 50 I will have 15 years of working at a $20k more per year salary. I can save that for retirement and I will be better off. I will be out of debt and I will be living in a home. These are my goals. I do not want to be a person who suffers more than average from a recession. I have been there. It’s how I got here. Unemployment for a year taught me that. I will not allow myself to be in that position again. I just won’t. I want to be a person who bucks the trend.
It’s like the last lecture says.... The brick walls are there to prove how much you want something. I want to be out of debt. I will work at it until it happens. The harder you work the better your luck. Luck is where timing meets preparation. If you are not prepared you may not be able to take advantage of what you want when it is available.
Tuesday, July 29, 2008
I want to be recession proof
Monday, July 21, 2008
Renewed focus, Credit Card#2
So After looking at my different side bars I have decided to change the Credit card bar to read Credit card #2. I have paid off about half of what was on Credit card #1 and re financed the rest to lower interest rates. That card is GONE baby! So Credit card #2 is at 15.99% and the Balance in June was $ 4,562.21. I have made the June payment of $ 100.00. I am working on my cards in interest order. Dave Ramsey suggests to make progress with smallest first and then interest But I am tracking the debt pay down as a whole and I want to pay as little as possible to those stupid banks. I can see my progress in my NCN Chart. Interest order will accomplish that. The interest makes a bigger difference if you start with 40K in debt then if you had 10k. Its a lot of interest. As a matter of fact Credit card #2 I have never made a single purchase on. I opened it for the introductory balance. And then I never moved the money. Bad plan. Those were the old days this is the get out of debt world and I am not looking back. According to my debt snowball plan, Credit card #2 will be paid off in May 2009. As long as we keep on track. Whoop Whoop Whoop.
I think it is a sickness. I am actually looking forward to my statements this month so I can log in my progress. I am also looking forward to making my August payments. just so I can track the progress. It really helps to have a fully funded emergency fund. Hooray debt is going down this month.
I think it is a sickness. I am actually looking forward to my statements this month so I can log in my progress. I am also looking forward to making my August payments. just so I can track the progress. It really helps to have a fully funded emergency fund. Hooray debt is going down this month.
Saturday, July 19, 2008
The Economy and personal finance
I read this article in the NY times this morning. "Uncomfortable Answers to Questions on the Economy" By PETER S. GOODMAN It was very interesting and he covered the changes in the economy in a big picture kind of view. As I read There were a few things that gave me pause si I felt the need to write about it. After all what else is a blog for???
I graduated High School in 1985. The career counselors all said get a job in accounting there is always a need for an accountant. And I have held many bookkeeping positions. I am glad I had the skills. I have used them to get a job that paid the bills. When I graduated college the economy was so tight I didn't pursue getting a job. I was pregnant and We moved overseas. The economy was terrible and I was happy to be away from home.
In 1992 My then husband (now ex) and I returned from over seas. The economy was terrible. We questioned leaving the military life and finding jobs. Neither one of us had a lot of experience and we both floundered around for a year. Then our marriage fell apart and we went our separate ways. The economy had nothing to do with the marriage falling apart but I do think if it had been easier to find jobs when we returned to the US it would have shortened the suffering.
In 1999 I moved South to NC. I wanted a position more suited to my skill set. I had been working in purchasing. I enjoyed it a little, but I felt there had to be something more for me. So I went south to have family support while I returned to school in programming. My daughter and I arrived just as the technology bubble burst. I was in NC for 6 years and never found a job in Technology. Some of that was skill set. Some of that was I needed time flexibility to be a single parent. Some of that was the crash of the technology sector made positions harder to get.
I feel like I have seen a lot of downs. In the booms I was never in the right pace at the right time. I never benefited directly from a growing sector in the economy. I benefited generally by the economy being good enough I was able to find work. The grass has always been greener for a friend. Different friends who were able to make money based on the economy. I have never been able to ride the wave. So I find it ironic now that I am caught up in the momentum of the pay off your debts wave. I started realizing my debt was to high about 1 year ago. I didn't quite have a solid plan I just knew things needed to change. I knew when my debt started approaching my salary I was in deep trouble. It took me about six months to read enough blogs and to find Dave Ramsey to get the steps into place. Even now I still prefer a moderated approach then the extreme rice & beans every day. Still it was shocking to me to read that "Average household debt has swelled to 120 percent of annual income, up from 60 percent in 1984, according to the Federal Reserve." How can you do that? The madness must stop.
I was never able to buy a house when every one was rushing to do so. I was not in a financial position to do it. This year I have started allowing myself the hope that prices will fall enough and I will have my debt under control in such a way that I will be able to take advantage of the timing of the economy. I feel like its about time its my turn! It has to be my turn to be able to take advantage of the economy and to personally be financially balanced. To live within my means.
Actually I find it funny that we need the economy to be bad to do what we should have always done. Live within our means. To say "Long term, Americans may have no choice but to spend less, save more and reduce debts — in short, to live within their means." is so silly. It has always been true. Learning how to do it is hard. Doing it is hard. Living within your means during a down economy is even harder. Increase the income.
Now the economy will be slow because we are not spending. "it’s an adjustment we’re going to have to make.” I am comfortable with it because it was my own decision. How comfortable are you?
I graduated High School in 1985. The career counselors all said get a job in accounting there is always a need for an accountant. And I have held many bookkeeping positions. I am glad I had the skills. I have used them to get a job that paid the bills. When I graduated college the economy was so tight I didn't pursue getting a job. I was pregnant and We moved overseas. The economy was terrible and I was happy to be away from home.
In 1992 My then husband (now ex) and I returned from over seas. The economy was terrible. We questioned leaving the military life and finding jobs. Neither one of us had a lot of experience and we both floundered around for a year. Then our marriage fell apart and we went our separate ways. The economy had nothing to do with the marriage falling apart but I do think if it had been easier to find jobs when we returned to the US it would have shortened the suffering.
In 1999 I moved South to NC. I wanted a position more suited to my skill set. I had been working in purchasing. I enjoyed it a little, but I felt there had to be something more for me. So I went south to have family support while I returned to school in programming. My daughter and I arrived just as the technology bubble burst. I was in NC for 6 years and never found a job in Technology. Some of that was skill set. Some of that was I needed time flexibility to be a single parent. Some of that was the crash of the technology sector made positions harder to get.
I feel like I have seen a lot of downs. In the booms I was never in the right pace at the right time. I never benefited directly from a growing sector in the economy. I benefited generally by the economy being good enough I was able to find work. The grass has always been greener for a friend. Different friends who were able to make money based on the economy. I have never been able to ride the wave. So I find it ironic now that I am caught up in the momentum of the pay off your debts wave. I started realizing my debt was to high about 1 year ago. I didn't quite have a solid plan I just knew things needed to change. I knew when my debt started approaching my salary I was in deep trouble. It took me about six months to read enough blogs and to find Dave Ramsey to get the steps into place. Even now I still prefer a moderated approach then the extreme rice & beans every day. Still it was shocking to me to read that "Average household debt has swelled to 120 percent of annual income, up from 60 percent in 1984, according to the Federal Reserve." How can you do that? The madness must stop.
I was never able to buy a house when every one was rushing to do so. I was not in a financial position to do it. This year I have started allowing myself the hope that prices will fall enough and I will have my debt under control in such a way that I will be able to take advantage of the timing of the economy. I feel like its about time its my turn! It has to be my turn to be able to take advantage of the economy and to personally be financially balanced. To live within my means.
Actually I find it funny that we need the economy to be bad to do what we should have always done. Live within our means. To say "Long term, Americans may have no choice but to spend less, save more and reduce debts — in short, to live within their means." is so silly. It has always been true. Learning how to do it is hard. Doing it is hard. Living within your means during a down economy is even harder. Increase the income.
Now the economy will be slow because we are not spending. "it’s an adjustment we’re going to have to make.” I am comfortable with it because it was my own decision. How comfortable are you?
Wednesday, July 16, 2008
random bad day notes
I rarely post when I am not feeling up. This is a post from 07/16/08. I am posting it to keep it real. I have bad days too. Wednesday & Thursday were whoppers. I am so glad to be beyond this...
I am feeling depressed. I also feel overwhelmed. I have a lot of tasks and I feel powerless to effect any change. I know that life is full of ups and downs. I know that I just have a few hurdles to get me over the hump. I can do this. I know I can get this resolved. I will pursue the right course of action. But why is health care so hard? How can I keep better records so that this can be easier to resolve. I feel completely trapped.
School financing -
Well it happens all the time move one stick and you get a flood this is why I am always afraid to take action. I finally took action to resolve some financing with my daughters school. I literally hit send on my email and my ex husband is trying to make a payment to her school. What kind of craziness is that? He sent an email stating that he would in no way contribute. He has now paid 1/2 of what he should contribute with no way of knowing what else he will do .
Medical record forms -
I need to consolidate her medical records with a single doctor and get things rockin' and rollin' for her future. I also need a good pediatrician. And I need to get my blood work done. It is a little strange I cant wait for my daughter to go away to school so I can take care of myself. When does it get to be my turn? I must have had a look in my eyes because dear fiancee looks at me and said "I am so glad we are doing this. I am so glad we are having a baby. I am so happy". Phew I just need to keep thinking about that moment to keep me moving forward.
So what does all this have to do wih the price of Tea in China? Well let me explain the connection. For me having my finances on a plan keeps me grounded So when I have days like today and I become unhinged I can rest assured that at least that area of my life is under control.
It just take s a couple of hours out of my day to fix what used to become a huge flood in my life and now is just a inconvenient high water mark. It only took a few hours of my day to make sure my daughters father contributed to her life. It was not my plan for the day but it was not that hard to handle. And he needed to contribute. He is not good at it so he needed a lot of coaching.
Stop think observe plan
Stop reacting to the ex husband in the same old pattern. If nothing changes nothing changes.
Take a deep breath.
Think about what he is actually doing vs what he is saying. Act only on the actions.
Observe that the words and the actions don't match. This is a very old pattern you have seen it before. Its okay. He will not change but you do not have to live with it.
Plan how you are going to approach him when you talk with him.
How do we break a habit? One study I read about it being the best time to quit smoking when you are on vacation. That way you are out of your element and you can start new habits without feeling uncomfortable. How do you change a behavior you have done for the last 20 years?
The answer is in the grounded steps to personal finance. Stop spending. Think about the changes you want to make. Observe how others are doing it successfully. Plan for yourself a good plan of action. Its about what choices you are making that define where you want to go.
There are signs for when you are too far off the trail.And there are strategies for when you need to shore up the plan you have. Persistence and patience. One day at a time baby. You will make it happen.
I am feeling depressed. I also feel overwhelmed. I have a lot of tasks and I feel powerless to effect any change. I know that life is full of ups and downs. I know that I just have a few hurdles to get me over the hump. I can do this. I know I can get this resolved. I will pursue the right course of action. But why is health care so hard? How can I keep better records so that this can be easier to resolve. I feel completely trapped.
School financing -
Well it happens all the time move one stick and you get a flood this is why I am always afraid to take action. I finally took action to resolve some financing with my daughters school. I literally hit send on my email and my ex husband is trying to make a payment to her school. What kind of craziness is that? He sent an email stating that he would in no way contribute. He has now paid 1/2 of what he should contribute with no way of knowing what else he will do .
Medical record forms -
I need to consolidate her medical records with a single doctor and get things rockin' and rollin' for her future. I also need a good pediatrician. And I need to get my blood work done. It is a little strange I cant wait for my daughter to go away to school so I can take care of myself. When does it get to be my turn? I must have had a look in my eyes because dear fiancee looks at me and said "I am so glad we are doing this. I am so glad we are having a baby. I am so happy". Phew I just need to keep thinking about that moment to keep me moving forward.
So what does all this have to do wih the price of Tea in China? Well let me explain the connection. For me having my finances on a plan keeps me grounded So when I have days like today and I become unhinged I can rest assured that at least that area of my life is under control.
It just take s a couple of hours out of my day to fix what used to become a huge flood in my life and now is just a inconvenient high water mark. It only took a few hours of my day to make sure my daughters father contributed to her life. It was not my plan for the day but it was not that hard to handle. And he needed to contribute. He is not good at it so he needed a lot of coaching.
Stop think observe plan
Stop reacting to the ex husband in the same old pattern. If nothing changes nothing changes.
Take a deep breath.
Think about what he is actually doing vs what he is saying. Act only on the actions.
Observe that the words and the actions don't match. This is a very old pattern you have seen it before. Its okay. He will not change but you do not have to live with it.
Plan how you are going to approach him when you talk with him.
How do we break a habit? One study I read about it being the best time to quit smoking when you are on vacation. That way you are out of your element and you can start new habits without feeling uncomfortable. How do you change a behavior you have done for the last 20 years?
The answer is in the grounded steps to personal finance. Stop spending. Think about the changes you want to make. Observe how others are doing it successfully. Plan for yourself a good plan of action. Its about what choices you are making that define where you want to go.
There are signs for when you are too far off the trail.And there are strategies for when you need to shore up the plan you have. Persistence and patience. One day at a time baby. You will make it happen.
Friday, July 11, 2008
Money Geekness
***I wrote this a while ago and saved it in notepad. I am posting it now for my record ***
Friday where my brain is allowed to float along is a dangerous thing. I started to look at houses. I want to buy a house next year. I think we will need at least 3% down. Than means if I want a home the size I want it will be 3% of 425000 12,750. We have 3k from my grandmother set aside. I have my fingers crossed that my mom might be generous and gift us another 12K from the estate next year. That would be awesome.
I really want to pursue my masters degree. I think that is the only way I am going to increase my earning potential. I don't know how else to do it. The problem is I also think I am going to need to take a second job so I can continue to pay down debt and still make payments to the new child support bill that I know is coming. I am so sick to my stomach about that. It takes as long as it takes. But a second job at a generous rate of 12 per hour will net 20 hours per week of about $170.00 its only about an 8K per year raise. A degree should give me an increase of abour $20K per year.
I can never remember if housing is supposed to be 25% of net income or gross income. It makes a big difference in the home we can afford. (Update: the answer is net income)
Really I am just mad about the numbers the house I want is just out of reach for us. We really can afford about a $325,000 home not a $425,000 home. I just am being greedy. I need to adjust my desires. Its too much pressure on us to get there from here. right now. I think we need to keep focusing on the debt pay off. We need to continue to contribute to a down payment fund.
I think my next steps are: Open the money market account. Open a checking account so I can get to the money when I need it. Perhaps ask payroll for a direct deposit change to $100.00 per month to go to the money market account so I done have to fuss with deposit slips every month.
Frustration... I just rail at the walls because I am not where I want to be. I want to own a home. I just do.
The third option is to be able to put down $ 85,000. Ha ha ha ha ha that is really stinking funny. Not going to happen from my pay check. Maybe in 10 years it will. In 10 years. If I spend the time to pay off my debt... Lets just run that scenario...
100 contribution per month
x 12
_____
1200 per year
x 10 years
_____
$12,000 dollars
+6000
______
$18,000 for a down payment
Paying off all credit cards. will leave me the ability to contribute 500 per month to the fund for lets say 5 years 30000+18000= 48000 we are half way there. Paying off the debt is a more effective use of my money.
Goals -
One of the best ways to accomplish something is to break it down into small, manageable parts. Complete these small parts and soon you'll have your goal accomplished. I need to do this for the PMP certification and for the MBA
http://digg.com/business_finance/WSJ_com_Five_Credit_Card_Traps_Everyone_Should_Know_About
Friday where my brain is allowed to float along is a dangerous thing. I started to look at houses. I want to buy a house next year. I think we will need at least 3% down. Than means if I want a home the size I want it will be 3% of 425000 12,750. We have 3k from my grandmother set aside. I have my fingers crossed that my mom might be generous and gift us another 12K from the estate next year. That would be awesome.
I really want to pursue my masters degree. I think that is the only way I am going to increase my earning potential. I don't know how else to do it. The problem is I also think I am going to need to take a second job so I can continue to pay down debt and still make payments to the new child support bill that I know is coming. I am so sick to my stomach about that. It takes as long as it takes. But a second job at a generous rate of 12 per hour will net 20 hours per week of about $170.00 its only about an 8K per year raise. A degree should give me an increase of abour $20K per year.
I can never remember if housing is supposed to be 25% of net income or gross income. It makes a big difference in the home we can afford. (Update: the answer is net income)
Really I am just mad about the numbers the house I want is just out of reach for us. We really can afford about a $325,000 home not a $425,000 home. I just am being greedy. I need to adjust my desires. Its too much pressure on us to get there from here. right now. I think we need to keep focusing on the debt pay off. We need to continue to contribute to a down payment fund.
I think my next steps are: Open the money market account. Open a checking account so I can get to the money when I need it. Perhaps ask payroll for a direct deposit change to $100.00 per month to go to the money market account so I done have to fuss with deposit slips every month.
Frustration... I just rail at the walls because I am not where I want to be. I want to own a home. I just do.
The third option is to be able to put down $ 85,000. Ha ha ha ha ha that is really stinking funny. Not going to happen from my pay check. Maybe in 10 years it will. In 10 years. If I spend the time to pay off my debt... Lets just run that scenario...
100 contribution per month
x 12
_____
1200 per year
x 10 years
_____
$12,000 dollars
+6000
______
$18,000 for a down payment
Paying off all credit cards. will leave me the ability to contribute 500 per month to the fund for lets say 5 years 30000+18000= 48000 we are half way there. Paying off the debt is a more effective use of my money.
Goals -
If When I become a project manager and increase my income to $70k per year (reasonable and do able) I will be able to put away another $ 30,000 in 4 years which is 80k so in 10 years if I pay off my debt and If I get my MBA Then I will have the 20% needed. Grrr I will be 51 before I take on a 30 year mortgage. Sigh. Well lets get started. today. I have got to do it. Losing my dream is not acceptable to me.
One of the best ways to accomplish something is to break it down into small, manageable parts. Complete these small parts and soon you'll have your goal accomplished. I need to do this for the PMP certification and for the MBA
http://digg.com/business_
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